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A Deeper Look at Black Creek and Resource

Blue Vault presented an evaluation of the four alternative investment programs sponsored by Black Creek Group and the five alternative investment programs…

A Deeper Look at Blackstone, Bluerock Real Estate, and CION Investment Group

In this Performance Series Webinar, Jim Sprow and Luke Schmidt of Blue Vault presented analysis of the performance of five…

Finding Value and Opportunities in the CRE Marketplace

On June 27, 2019, Blue Vault hosted an educational webinar with the focus on finding value and opportunities in the commercial real estate marketplace. The webinar had a panel format…

Do Nontraded REITs Have Exposure to Bank Branch Closures?

According to S&P Global Market Intelligence, bank branch closings are continuing to outpace new openings, as customers are using more online and mobile banking services. According to a June 5 article by Chris Hudgins at S&P Global, branch closings reached an all-time annual…

The Impacts of Accounting Standard ASC Topic 842 on NTR Balance Sheets

On January 1, 2019, nontraded REITs adopted Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC Topic 842. The change in accounting standards potentially impacts both the assets and the liabilities…

Capital Raise vs. Share Redemptions by NTRs with Continuous Offerings

Capital Raise vs. Share Redemptions by NTRs with Continuous Offerings May 20, 2019 | James Sprow | Blue Vault The liquidity features of continuously offered nontraded REIT programs and interval funds can be attractive to investors who may shy away from programs that historically have locked up their funds for many years without clearly defined …

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Breaking Down Alternative Investment Sales

Sales by reporting nontraded REITs during Q1 2019 totaled an estimated $1.712 billion, including $1.129 billion in sales by Blackstone REIT. The total did not include sales…

The True Cost of Borrowing for Nontraded REITs

The use of leverage increases both the expected rates of return to a REIT’s shareholders and the financial risk associated with debt. Interest expense is a fixed…

A Deeper Dive into Strategic Storage Growth Trust’s Full-Cycle Performance

On January 24, 2019, Strategic Storage Trust II (SST II) acquired Strategic Storage Growth Trust by way of a merger. Upon completion of the merger, each share of Strategic Storage Growth Trust (SSGT) common stock (consisting of…

The Interesting Case of Highlands REIT-Part II in a Series on InvenTrust Properties Corporation

Highlands REIT, Inc. was created in 2016 to own and manage substantially all of the “non-core” assets previously owned and managed by InvenTrust…

The Latest Full-Cycle Events for Nontraded REITs

In June 2012, Blue Vault published the first comprehensive study of full-cycle events in the nontraded REIT industry. Since that time, five editions of Nontraded …

Recent Changes to Nontraded REIT Estimated NAVs per Share

In this article, Blue Vault Partners compares the most recent NAVs, estimated by nontraded REITs, to the previous NAVs reported by the REITs. To make the…

Daily and Monthly NAV Nontraded REIT Performance Review for 2018

This report summarizes the 2018 estimated returns to investors in those nontraded REITs that have daily or monthly NAVs announced, with pricing of their…

Performance of Listed REITs and Traditional Indices Q3 2018

Performance of Listed REITs and Traditional Indices Q3 2018 December 6, 2018 | James Sprow | Blue Vault NAREIT publishes historical returns for listed REITs each month, including returns for each sub-sector by property types of the listed REIT sector. The year-to-date returns for the different listed REIT sectors vary from a high of 7.36% …

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Recent Shareholder Returns from Perpetual Nontraded REIT Offerings

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 …

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Blockchain Applications in Commercial Real Estate? How, Why and When?

Blockchain Applications in Commercial Real Estate?  How, Why and When? July 11, 2018 | James Sprow | Blue Vault In 1976, this author had the opportunity to pose a question to Frank T. Cary, then CEO of IBM, at a party. I asked, “What do you do for an encore? You have 70% of the …

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How to Answer the Most Basic Questions About Nontraded REITs

Imagine that you are the type of financial advisor or individual investor who wants to do your own research on a nontraded REIT program, either a program in which you already have invested or are considering for future investment.

The Interesting Case of Highlands REIT-Part I in a series on InvenTrust Properties Corporation

Highlands REIT, Inc. was created to own and manage substantially all of the “non-core” assets previously owned and managed by InvenTrust Properties Corp.

The Challenges of Calculating Nontraded REIT Investor Rates of Return

With the recent release of the 5th Edition Blue Vault Nontraded REIT Full-Cycle Performance Study, this may be an appropriate time to offer perspectives on the challenges faced when calculating rates of return by investors in nontraded REIT programs.

Interval Funds Explained

What is an “interval fund”? Interval funds are SEC-registered closed-end funds that provide continuous offerings of their securities. They usually price and sell their shares daily, but do not list them on an exchange. They redeem shares by making periodic repurchase (tender) offers at net asset value in compliance with Rule 23c-3(b) of the Investment Company Act of 1940.

Distribution Coverage—Why It’s Important to Understand the Difference Between MFFO and Cash

At Blue Vault, we report the sources of distributions in the Nontraded REIT Industry Review because we think it’s important to distinguish that Modified Funds from Operations (MFFO) is not the same as the Cash Available for Distributions. Even when MFFO “covers” the distribution amount, the actual cash needed to pay investors — or portions of it — might still be obtained from other sources such as offering proceeds or debt financing. But how can that be?

The Use of Debt in Nontraded REITs

The Use of Debt in Nontraded REITs Virtually all nontraded REITs utilize debt to finance property portfolios. There are many reasons cited by nontraded REIT sponsors to finance investments in commercial real estate with combinations of equity raised through their public offerings and debt obtained in the form of mortgages secured by the REIT’s assets. …

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Are REITs Like Bonds: Why or Why Not?

Are REITs Like Bonds: Why or Why Not? With the Federal Reserve finally beginning to raise short-term interest rates from the historical lows over the last several years, we may want to compare REITs to bonds and consider the ways in which investor returns from nontraded REIT investments may resemble returns from bonds. Just as importantly, …

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Capitalization Rates Recapped in Today’s Market Environment

Capitalization Rates Recapped in Today’s Market Environment In an Insights article on the Blue Vault website in September, 2015, we defined capitalization rates and explained how they relate to values at the property level and the portfolio level. Real estate investments produce income available to investors in the form of NOI, or Net Operating Income. …

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Interval Funds and Nontraded Closed-End Funds: Defined and Demystified

Although still not as widely used in the financial services sector as nontraded REITs, BDCs and mutual funds; interval funds and nontraded closed-end funds are growing quickly. Why are they gaining popularity? Perhaps if we define and differentiate these fund types, we can better understand the answer to that question.

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Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
July 7, 2015

Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.