NTR Sales Above Trend While BDC Sales Falter in April

May 16, 2017

NTR Sales Above Trend While BDC Sales Falter in April

May 16, 2017 | by James Sprow | Blue Vault

*Updated May 17, 2017 12:27pm


April sales of nontraded REITs returned to a more normal trend in April after a surge in March. The March sales of $622.5 million reported to Blue Vault by nontraded REIT sponsors fell to $332.6 million in April, still about 33% above the estimated monthly average for January and February of $251 million. BDC sales reported in April were $55.7 million, down from $94.1 million in March and 17% below the $67 million monthly average in January and February. Blackstone REIT reported sales in April of $104.7 million, down from $173.5 million in March. The Blackstone sales constituted 31.5% of reported nontraded REIT sales in April, up from 27.9% of the industry sales in March.

Reported nontraded REIT sales for April were the best monthly sales total since June, 2016. Reported BDC sales, however, were the lowest for any month since April, 2016. All sales reported to Blue Vault by nontraded REIT sponsors and BDC sponsors include DRIP proceeds each month.

Among leading sponsors in the nontraded REIT sector in April following Blackstone ($104.7 million) were Jones Lang LaSalle, SmartStop Asset Management and Griffin Capital, with $37.6 million, $35.4 million and $32.2 million, respectively.

Leading sponsors in the BDC sector with April sales were FS Investments ($27.3 million), CNL Financial ($9.3 million) and Hines Securities ($4.2 million).

All nontraded REIT and BDC sales are reported to Blue Vault each month by program sponsors, broken down by share classes and DRIP proceeds. For April, DRIP proceeds were about 9% of reported nontraded REIT sales, but only 3% of total sales in March. The temporary suspension of sales by Carey Watermark Investors 2 in April, as the REIT adjusted selling prices to reflect the net asset value of $10.74 per share announced in March, had the effect of reducing that REIT’s April sales.

Each month, Blue Vault posts monthly equity raised by nontraded REIT, BDC, and CEF, as well as interval fund, and private placement sponsors to the Blue Vault website.

*Please note that Carey Watermark Investors 2 has a new NAV of $10.74 per share, not $10.53 as reported on May 16, 2017.

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Thomas E. Burns, III
July 29, 2015
February 22, 2016

I subscribe to Blue Vault to keep up with the sponsors and their wholesalers! The analysis keeps me up to date with the various portfolios and the way they are managed, including the differences between them.