Nontraded REIT Sales Rebound in Q4 2016 While BDC Sales Slow

January 12, 2017


Nontraded REIT Sales Rebound in Q4 2016 While BDC Sales Slow

January 11, 2017 | by James Sprow | Blue Vault


Equity capital raised by open nontraded REIT programs in Q4 2016 appear to have rebounded according to sales figures reported by Blue Vault. For the 31 nontraded REITs reporting, sales for all share classes, including DRIP proceeds, totaled $1.04 billion in Q4 2016, compared to $1.00 billion in Q3 2016. A new entrant, Blackstone Real Estate Income Trust, Inc., was not included in the reported totals. In an 8-K filing with the SEC on January 4, Blackstone reported breaking escrow with $279 million in IPO proceeds, all in the most recent quarter. Including Blackstone’s figure would bring the Q4 2016 total for NTRs to $1.32 billion, a 31% increase over the industry’s Q3 total. Including the Blackstone offering, sales for all reporting NTRs for 2016 totaled an estimated $4.80 billion. 

According to reports from NTR sponsors and Blackstone’s 8-K, the top four programs raising equity capital in Q4 2016 were:

  • Blackstone Real Estate Income Trust, Inc.             $279 million
  • Jones Lang LaSalle Income Property Trust, Inc.   $176 million
  • Industrial Property Trust, Inc.                                   $131 million
  • Griffin Capital Essential Asset REIT II, Inc.             $86 million

Reporting BDCs showed a 21% decline in sales, from $303 million in Q3 2016 to $239 million in Q4. Sales for all of 2016 came in at $1.00 billion. According to the reporting sponsors for BDCs, the top two programs raising equity capital in Q4 2016 were:

  • FS Investment Corporation IV                                     $47.8 million
  • FS Energy & Power Fund                                               $44.6 million

Blue Vault compiles sales each month for nontraded REITs, BDCs, Closed End Funds, Private Placements and Interval Funds. Reported sales are verified each quarter for any program that files financial reports with the SEC. The reported figures are estimates based upon voluntary reports from product sponsors. 

December Monthly Sales

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Gil Armour, CFP
February 3, 2016

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.