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 computer mainframe business, what’s next?” His answer was very succinct

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.

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

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.

Beth Glavosek | Blue Vault | Preferred stock shares have been around for a long time, but what are they and why are they relevant to investors in alternative investments? Capital stack • Holders of preferred stocks have a higher claim on a company’s assets and earnings than common stock, including the payment of dividends…

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…

Blue Vault asked Hoffman about some key metrics that can be applied to interval fund performance. 

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…

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.…