In June, 2012, Blue Vault published the first comprehensive study of full-cycle events in the nontraded REIT industry. In this updated study, the 4th edition, with the addition of 10 full-cycle events that were completed between November 11, 2014 through October 1, 2015, the sample size analyzed totals 45 REITs.
The study was prepared in collaboration with Dr. Richard Martin of the Real Estate Program, Terry College of Business, University of Georgia.
Online access has been granted to all Blue Vault subscribers, including financial advisors affiliated with one of Blue Vault’s Broker Dealer Partners.
The purpose of this study is to assess the performance of nontraded REITs that have provided shareholders with full liquidity. Full-cycle events in the nontraded REIT industry occur when a REIT completes a listing of its common stock on a public exchange, is acquired by or merges with another entity, or liquidates its real estate portfolio. A full-cycle event provides shareholders with the opportunity to completely liquidate their common stock holdings in arms-length transactions for the first time. While nontraded REITs typically offer above-average distribution yields, one cannot fully assess their performance until their shareholders experience a full-cycle exit event that provides them with liquidity.
The release of the 4th Edition Nontraded REIT Full-Cycle Performance Study will update results from the 3rd edition, completed in 2014 study, and will again utilize custom benchmarks designed to match the individual REIT portfolios in regard to asset type and geographic diversification, and will answer many questions regarding specific and overall industry performance.