Blue Vault Publishes Third Edition Nontraded REIT Fee Study

February 4, 2020 | James Sprow | Blue Vault

 Blue Vault Partners has published the Third Edition Nontraded REIT Fee Study, a thorough report on all of the fees associated with nontraded REIT offerings that were effective as of September 30, 2019.  The study covers 21 nontraded REIT common stock offerings, including 11 perpetual-life REITs.  All of the open REITs have multiple share classes, with different fees associated with each common share class.

The report highlights trends in the industry with regard to upfront loads, trailing shareholder servicing fees, acquisition and disposition fees, and contingent fees related to performance.  It includes a sensitivity analysis that illustrates the effects of different types of fees on eventual shareholder returns.

One type of fee that has a significant impact on shareholder returns is the annual asset management fee. The study shows the many ways these fees are calculated and the potential impacts the different methods can have on both the annual costs to shareholders and their eventual holding period returns. 

Blue Vault’s Fee Study catalogues all fees associated with nontraded REIT offerings and explains in detail their definition, their application, and their impacts on returns.  The Study also reports the differences in the multiple share classes and their eligible investors.  Detailed Appendices give examples of how fees are defined in the prospectuses of the open offerings.

The 52-page report is available to Blue Vault’s subscribers at no additional cost.

For more information about subscribing to Blue Vault’s research, please visit our website or call 678-802-8716.