NTR Sales at $380.1 Million in April, Up 17% From March, Nontraded BDC Up 17% Also
May 10, 2018 | James Sprow | Blue Vault
Sales by nontraded REITs reported to Blue Vault for April totaled $380.1 million, up almost 17% from the March total of $326.2 million. Blackstone REIT reported sales of $244.7 million in April, comprising over 64% of all nontraded REIT sales for the month, decreasing slightly from its 66% share in March. Blackstone’s month-to-month increase of $24.3 million is responsible for 45% of the total NTR sales increase of $53.9 million. NTR sales were approximately $332.6 million in April 2017, for a year-over-year increase of 14%. There were 20 sponsors raising capital for nontraded REIT programs in April 2018 compared to 20 sponsors raising capital for nontraded REIT programs during 2017, and 22 sponsors with offerings during 2016. While Inland exited the field in February with the close of the offering for Inland Residential Properties Trust, at least three new sponsors were actively raising funds in April.
New nontraded REIT offerings that have yet to report significant sales or have yet to break escrow include FS Credit Real Estate Income Trust (sponsored by Franklin Square Holdings and declared effective 9/11/2017, Rodin Income Trust (sponsored by Cantor Fitzgerald and effective 05/02/2018), Starwood Real Estate Income Trust (sponsored by Starwood Capital Group and declared effective 12/27/2017), Nuveen Global Cities REIT (sponsored by Nuveen LLC and declared effective 1/31/2018), Oaktree Real Estate Income Trust (effective 4/30/2018), and Phillips Edison Grocery Center REIT III (effective 5/8/2018).
Blackstone REIT’s reported sales in Q1 2018 were $632.8 million, for 66.5% of NTR industry sales for the quarter. This is up from Blackstone REIT’s market share for 2017 when $1.872 billion represented 44% of all NTR sales for the year.
Other leading sponsors with sales in the nontraded REIT sector in April, following Blackstone’s $244.7 million, were:
|•||Black Creek Group||$25.7 million|
|•||Griffin Capital Company||$23.3 million|
|•||CIM Group (formerly Cole Capital)||$21.1 million|
|•||Jones Lang LaSalle||$15.8 million|
|•||Carter Validus||$13.2 million|
|•||Cantor Fitzgerald||$7.8 million|
|•||SmartStop Asset Management||$7.1 million|
|•||Moody National Companies||$5.1 million|
Nontraded BDC sales reported in April were $34.7 million, up 16.6% from March’s $29.8 million but down 38% from April 2017’s $55.7 million. The leading sponsor of nontraded BDCs reporting sales in April was Owl Rock Capital Advisors with sales of $25.1 million (up from $21.5 million in March), followed by CION Investments at $6.6 million, MacKenzie Capital Management at $1.6 million and Terra Capital Partners at $0.8 million.
Just six nontraded BDC sponsors were raising capital in April 2018, down from seven in February. FS Investments closed two nontraded BDC offerings in November 2017.
Leading sponsors in the BDC sector for Q1 2018 sales were Owl Rock Capital Advisors at $60.7 million (64.6% market share) and CION Investments with $11.7 million. Other BDC sponsors with sales in Q1 2018 include Terra Capital Partners at $8.5 million, NexPoint Capital/Highland Capital Management at $6.5 million, MacKenzie Capital Management at $2.7 million, and Sierra/Medley Management at $1.5 million.
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