Recent Shareholder Returns from Perpetual Nontraded REIT Offerings
December 11, 2018 | James Sprow | Blue Vault
Blue Vault has estimated total returns to shareholders of those nontraded REITs that have continuous or perpetual offerings and provide daily or monthly updates to their estimated net asset values per share (NAVs). There are currently seven nontraded REITs with perpetual offerings and frequently updated NAVs. Using the recent SEC filings or website reports by these REITs, year-to-date shareholder returns and 1-year returns can be reported or brought up to date with recent data.
The following REITs have continuous offerings and frequently updated estimated NAVs:
|REIT||NAV Updates||Share Classes|
|Black Creek Diversified Property Fund Inc.||Monthly||I, D, S, T, E|
|Blackstone Real Estate Income Trust, Inc.||Monthly||I, D, S, T|
|CIM Income NAV, Inc.*||Daily||D, T, I|
|Griffin Capital Essential Asset REIT II, Inc.||Daily||A, AA, AAA, D, I, S, T|
|Hines Global Income Trust, Inc.||Monthly||D, I, S, T|
|Jones Lang LaSalle Income Property Trust, Inc.||Daily||A, A-I, M, M-I|
|RREEF Property Trust, Inc.||Daily||A, I, T|
|*formerly Cole Real Estate Income Strategy (Daily NAV), Inc.|
All of these REITs have multiple share classes and some report their returns for various holding periods both with sales loads and without sales loads. For simplicity Blue Vault reports here only the highest return among each REIT’s multiple share classes for 2018 year-to-date and for one year. Common shares in Class I are subject to no stockholder servicing fees which may impact the net distribution rates of other share classes, lowering their respective rates of return.
|REIT||Class||YTD Return||One-Year Return||NAV As of Date|
|Black Creek Diversified Property Fund Inc.||I||5.99%||6.15%||10/31/18|
|Blackstone Real Estate Income Trust, Inc.||I||7.87%||9.29%||12/1/18|
|CIM Income NAV, Inc.*||I||3.33%||4.90%||11/30/18|
|Griffin Capital Essential Asset REIT II, Inc.||I||6.21%||6.73%||11/30/18|
|Hines Global Income Trust, Inc.||I||8.00%||NA||10/31/18|
|Jones Lang LaSalle Income Property Trust, Inc.||M-I||5.35%||7.94%||12/7/18|
|RREEF Property Trust, Inc.||I||7.02%||8.17%||11/30/18|
Note that several REITs have not reported updated NAVs per share since October 31, 2018. For those REITs, the year-to-date return is calculated over a 10-month period and the one-year return is for the period 10/1/17 through 10/31/18. Estimated returns for those REITs that have not published returns on their respective websites are calculated as the change in NAV plus all cash distributions divided by the beginning NAV.
I have been using Blue Vault Partners for the past five years. I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs. The reports help me analyze which sponsors are doing a responsible job of managing their offerings. This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.