Blue Vault Releases 5th Edition of its Renowned Nontraded REIT Full-Cycle Performance Study

February 8, 2018

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Blue Vault Releases 5th Edition of its Renowned Nontraded REIT Full-Cycle Performance Study

February 8, 2018 | by Stacy Chitty | Blue Vault

Of the 130 nontraded REITs since 1990 which have raised capital, there have been 56 nontraded REITs that have fully liquidated in some manner. Since 2012, Blue Vault has dug deep to calculate total returns for 45 of these REITs. On Monday, February 12, Blue Vault will release the 5th edition of its Full-Cycle Performance Study, which will include the latest 11 full-cycle NTR liquidity events.  Blue Vault’s partnering Broker Dealers, sponsors, and subscribing financial advisors will receive access to this historic study at no cost.

Blue Vault not only calculates total returns to investors, but also compares shareholder returns to two custom benchmarks for each REIT based upon private portfolio returns (NCREIF) and traded REIT returns (FTSE-NAREIT), where each custom benchmark is adjusted for property types, property locations by region, and differences in leverage.

A few highlights from the study

  • The average total assets over the lives of the 56 REITs was $1.27 billion
  • 3 of the latest 11 full-cycle NTRs had negative average total returns
  • For all 56 NTRs, the annualized total returns ranged from -9.28% to 20.52%
  • Although in the analysis of the first 45 nontraded REITs none had liquidated via sale of their property portfolios, among the latest 11, 5 totally liquidated their portfolios and paid cash to their investors from those liquidations
  • The median capital gain for all 56 NTRs was 4.95%
  • Of the 56 total NTRs, 12 outperformed the publicly-traded FTSE-NAREIT custom benchmark
  • Of the 56 NTRs, the first vintage of 17 full-cycle NTRs, which are also considered the older, legendary NTRs, on average performed better than the later four samples of full-cycle NTRs

See the Blue Vault Full-Cycle Performance Study on Monday, February 12, to find the full-cycle NTR average and median total returns, as well as how these total returns compare to returns on other indices including the NCREIF NPI, the FTSE-NAREIT All REIT Index, the S&P 500 and 10-Year Treasury returns.   

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Loreen M. Gilbert, CIMA, AIF, CRC, CLTC – President, WealthWise Financial Services
Blue Vault
July 6, 2016

Our firm has been using Blue Vault from the first year it was available.

We have found it to be a valuable tool to verify what wholesalers tell us and to dig deep into how the reported investments are really performing.

We appreciate that Blue Vault has expanded its services from initially covering REIT's to now also including BDC's.

Our clients also appreciate that we conduct this additional due diligence on their behalf.