December 2020 Nontraded REIT Capital Raise Increases 41% for Reporting Offerings

January 13, 2021 | James Sprow | Blue Vault

Blue Vault received December sales totals for 12 effective nontraded REIT program offerings as of January 10, 2021. Sales reported by those 12 NTRs totaled $186.86 million compared to $116.68 million for 13 reporting REITs in November, an increase of $70.18 million, or 41%. Four additional nontraded REITs have previously suspended their offerings or did not report sales for December (Griffin Capital Essential Asset REIT, Moody National REIT II, InPoint Commercial Real Estate Income, and Strategic Storage Trust IV).

Jones Lang LaSalle Income Property Trust’s offering led the 12 reporting NTRs with sales of $59.32 million, up from $16.67 million in November, bringing the REIT’s 2020 total sales to $413.67 million, down 8.5% from the total for 2019 when the REIT raised $452.18 million. Black Creek Industrial REIT IV raised $41.10 million in December, down 5.6% from $43.54 million in November, bringing the REIT’s total for 2020 to $975.73 million, up 224% from $301.12 million in 2019. FS Investments raised $29.82 million for its FS Credit Real Estate Income Trust in December, up 71.2% from its November total of $17.35 million. Hines Global Income Trust raised $22.14 million, up 103% from November when it raised $10.90 million. All sales reported include distributions reinvested in shares of the REIT (DRIP).

Table I shows month-to-month comparisons for those REITs reporting sales for December.

Table I

Table II shows December Y-O-Y comparisons for 17 nontraded REITs that have reported sales either in December 2019 or December 2020 or both. The largest Y-O-Y increases among those REITs that were raising capital in December 2020 were for Black Creek Industrial REIT IV (up 37%) and Cantor Fitzgerald Income Trust (up 72%).

Table II 

Nontraded BDC Sales

Just one nontraded BDC was raising funds in December 2020 and reported sales to Blue Vault. Owl Rock Capital Corporation II raised $43.24 million, up 121% from $19.55 million in November. MacKenzie Realty Capital reported nontraded BDC sales in October of $48,700 but did not report sales for November or December.  Triton/Prospect’s TP Flexible Income Fund reported sales for October of $25,000 but did not report sales for November or December. The total capital raise reported by the only nontraded BDC for December 2020 was $43.24 million, all by Owl Rock Capital Corporation II compared to $21.91 million reported by three BDCs for October, an increase of 197%.

Nontraded Preferred Stock Issued by Reporting Sponsors

Six listed REITs reported their nontraded preferred stock issuances in December to Blue Vault. Bluerock Residential Growth REIT issued $29.22 million of its preferred stock in December, up 57% from $18.62 million in November. CIM Commercial Trust issued $3.16 million of its nonlisted preferred in December, down from its November total of $3.70 million. Preferred Apartment Communities issued $11.77 million in two series of preferred shares in December, down 25% from the $15.69 million issued in November. Prospect Capital issued $10.41 million of nontraded preferred in December, up 655% from $1.38 million issued in November. Gladstone LAND and Gladstone GOOD issued a total of $7.94 million in nontraded preferred in December, up from $6.61 million in November. Altogether, the six companies reported issuing $62.50 million in nontraded preferred shares in December, up 36% from the total for the same listed REITs of $45.99 million in November.

Table III

Source:  Blue Vault