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Stacy Chitty: Zombie REITs

Some nontraded REITs continue to live on, despite having paid no distributions for many years and seeing their net asset values decline over time. Watch Stacy Chitty talk about one zombie REIT in this Blue Vault Minute.

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Louis Rogers: Who is Capital Square?

Louis Rogers: Who is Capital Square?

In this clip from Inside the V(ALT), Louis Rogers introduces Capital Square, including when it was founded, its focus, and its range of...

Clip: Who is Capital Square?

Clip: Who is Capital Square?

Clip: Who is Capital Square? In this clip from Inside the V(ALT), Louis Rogers introduces Capital Square, including when it was founded, its focus, and its range of...

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Of the 4 nontraded REITs in the Blue Vault Liquidating LifeStage, American Finance Trust, InvenTrust Properties, KBS Legacy Partners Apartment Trust, and Lightstone Value Plus Real Estate Investment Trust V (formerly Behringer Harvard Opportunity REIT II), which REIT has the strongest interest coverage ratio?

Answer: Of the 4 Liquidating LifeStage REITs, Lightstone Value Plus Real Estate Investment Trust V has the healthiest interest coverage ratio at 7.7X.  However, each of the other 3 Liquidating LifeStage REITs also has what is considered to be a healthy interest coverage ratio; American Finance Trust at 3.4X, Inventrust Properties at 7.0X, and KBS Legacy Partners Apartment Trust at 2.0X.  According to industry analysts, a 2.0X interest coverage ratio, meaning operating income is at least twice interest expense, is generally considered to be in the healthy category.      
 
Furthermore, while American Finance Trust is paying a distribution yield of 5.20%, its MFFO payout ratio of 131% means it is not covering those distributions completely.

Overview of Sales Channels

Overview of Sales Channels May 23, 2018 | Beth Glavosek | Blue Vault The alternative investment industry has long relied on the Independent Broker Dealer (IBD) channel for its sales; however, a broader array of financial firms are embracing the benefits of income and...

How to Answer the Most Basic Questions About Nontraded REITs

Imagine that you are the type of financial advisor or individual investor who wants to do your own research on a nontraded REIT program, either a program in which you already have invested or are considering for future investment.

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