The median monthly total return for 16 continuously offered nontraded REIT programs (“NAV REITs”) was 0.21% in July, compared to just 0.01% in June. Ten of the 16 reported positive total returns.

Blue Vault has previously written about the challenges faced by nontraded REIT programs as interest rates rise.  Our article about InPoint Commercial Real Estate Income stated that the general rise in interest rates

From our earliest reports in Q3 2009, Blue Vault has been reporting the NAREIT-defined Funds from Operations (FFO) as well as Modified Funds from Operation (MFFO).

It will be interesting to watch the investment strategies of the large nontraded REITs going forward.

Blue Vault has recently updated the list of nontraded REITs that have suspended their public offerings and made distribution cuts or eliminated distributions due to the COVID-19 pandemic and related financial uncertainties. 

...two measures of relative safety might be the combination of a real estate portfolio’s weighted average occupancy and its weighted average lease maturity.

Thus far in 2020, six nontraded REIT offerings have been suspended or announced suspensions.

...nontraded REIT managers are contemplating or have already taken action to delay or discontinue distributions.

Triple-net leases protect the property owners from the responsibilities for maintenance, taxes, insurance, and other expenses that are borne by the tenants and their corporate owners.