When considering an investment in nontraded REITs, both investors and financial advisors need to be aware that these investment vehicles move through distinct developmental stages over time as they grow from inception to maturity. As a result, their performance characteristics more closely mirror those of direct property investments, private equity, and other illiquid vehicles. In …
In our opinion, recent articles and blog postings have presented a biased view of nontraded REIT performance. For example, in the June 15, 2014, Wall Street Journal article titled “Nontraded REITs are Hot, But Have Plenty of Critics” and in online blog posts by the Securities Litigation & Consulting Group, we believe the data fall …
Blue Vault was founded on the belief that financial professionals need data and analysis based on fact, not opinion. For the past five years we have developed analytical tools and financial models that offer our clients the full picture of performance free of subjectivity and personal opinion. From our perspective, a truly effective performance measurement …
Franklin Square recently announced that it will be listing its first nontraded BDC, FS Investment Corp., on the New York Stock Exchange under the symbol “FSIC.. It is expected to list in April 2014. FSIC was the first nontraded business development company (BDC) product in existence. Launched in 2009, FS Investment Corp. is a partnership …
Pick any article published about, nontraded REITs within the past year and most likely the primary focus of the article will be about how much money the industry has raised. Over and over again, we continue to see a significant amount of emphasis placed on this topic and are troubled by the suggestion that fundraising …
Blue Vault has formed a strategic alliance with Blue Springs Capital to launch a new report that will monitor and analyze the performance of nontraded Business Development Companies (BDC). Created for the purpose of providing education and enhanced transparency for the nontraded REIT industry, Blue Vault is expanding the firm’s research of nontraded investment products …
The pace of nontraded REIT offering closings has accelerated significantly over the past six months. In fact, through June 2013, there have been a total of ten offerings that have closed to new investments compared to eight offerings that closed during all of 2012. While some might have their concerns about this recent trend, these …
Ask anyone in the real estate investment industry and they will tell you that the metric known as “Funds from Operations,” or FFO, is not perfect. In fact, there has been an ongoing debate within the publicly traded REIT community for years on this very topic. The FFO metric was originally adopted by the National …
As we welcome in a new year, last week the nontraded REIT industry welcomed its newest member and the eighth offering to incorporate a daily pricing model. Continuing with a trend that began in 2011 and maintained momentum throughout 2012, as of January 8th, daily priced nontraded REITs represent more than a third of all …
Nontraded REITs continue to get a bad reputation as a result of fines and sanctions like the one just handed down by FINRA against David Lerner Associates. On the whole however, sponsors of nontraded REITs and the broker/dealers that distribute them are among the most highly regulated groups operating in the securities industry today. For example, …
After a quiet 2011, the nontraded REIT industry has responded with several full-cycle events such as the listing of American Realty Capital Trust (NASDAQ: ARCT), Healthcare Trust of America (NYSE: HTA) and Retail Properties of America (NYSE: RPAI). With the merger of Corporate Property Associates 15 Inc. (CPA 15), into W.P. Carey & Co., LLC, …
Since the beginning of 2009, the industry has introduced 45 new nontraded REIT offerings, seen seven full-cycle events, and has grown to an almost $80 billion industry. In addition, sponsors of new offerings continue to improve investment strategies, introduce innovative product designs, and provide fee enhancements for the benefit of investors. And throughout this period, …
The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.
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