The Latest Full-Cycle Events for Nontraded REITs (published February 6, 2019)
Nontraded REIT Fee Study
In this study of the different types of fees and expenses that are important in ultimately determining the investment returns to common stockholders in nontraded REITs, Blue Vault has compiled data for all effective nontraded REIT programs as of September 30, 2016. It is our goal to present this data in a clear, objective and understandable format. Every nontraded REIT program files an SEC form S-11 when a new REIT product is introduced to the market. Within this filing any interested investor will typically find well over 150 pages of fine print describing in detail the plans of the REIT sponsor to raise funds and invest in commercial real estate of various types with various strategies and objectives. Included will be suitability standards for investment in most of the states in the U.S., lengthy warnings about the risks inherent in the program and the commercial real estate market, and pages of “boiler plate” language that meets the SEC requirements for full disclosure and stays away from promising any particular rate of return or safety from loss.
Nontraded REIT NAV Study
This study of the pricing and net asset values of nontraded REIT programs is the first compilation of such data for all effective programs by Blue Vault and reports every offering price for most common share classes, each subsequent offering price change, each announcement of net asset values (NAVs) by share class and the “as of” date for those announcements.
Nontraded REIT Capital Raise vs Redemptions
The purpose of this study is to explore the relationships between gross dollars raised by nontraded REITs and the value of common share repurchases during their respective public offerings. With the recent trend in the industry toward continuous public offerings and increased liquidity via share repurchase programs, it is important to understand the net effects of new capital flowing into the sector and the impacts that share redemptions have on the net capital raised.