Non-Traded REIT Sales Continue to Decline in April
Sales of non-traded real estate investment trusts continued to slump in April, according to data compiled by Robert A. Stanger & Co. Last month, FINRA’s regulatory notice 15-02 took effect and the final version of the Department of Labor’s fiduciary rule was released, which is apparently having a negative impact on equity raising.
In April, equity REITs raised a total of $381.8 million, down 18.2 percent from March when sales topped $466.7 million. Year-to-date, equity REITs have raised $1.7 billion, a decrease of 55.1 percent compared to the same period in 2015 when sales topped $3.7 billion.
In April 2015, equity REITs raised $755.4 million, which is 49.5 percent less than current monthly sales totals.
Sales of mortgage REITs fared better percentagewise, raising $31.5 million in April, a decrease of 7.1 percent compared to March sales of $33.9 million. Year-to date, mortgage REITs have raised a total of $137.9 million, compared to $401.2 million in 2015, a decrease of 65.6 percent.
Mortgage REITs raised $111.5 million in April of last year, 71.8 percent more than during April 2016.
Sales of daily NAV REITs increased 6.2 percent in April with sales reaching $74.1 million, compared to March when sales topped $69.8 million. Year-to-date sales in 2016 were $260.9 million, compared to just $120.1 million for the same period in 2015, an increase of 117.3 percent.
Last April, daily NAV REITs raised $43.8 million, thus equity raising in April 2016 saw a year-over-year increase of 69.2 percent.
Market share for daily NAV REITs jumped to 17.9 percent in April, compared to 13.9 percent in March. Year-to-date, market share for daily NAV REITs increased to 14.4 percent in 2016 from 2.9 percent during the same period in 2015.
Sales of low and no-load shares of traditional and daily NAV REITs reached $209.1 million in April, a slight decrease of 2.3 percent compared to March, when sales topped $214 million. Year-to-date sales of low and no-load shares skyrocketed 268.1 percent in 2016 compared to 2015. Thus far in 2016, sales have reached $818.8 million, compared to $222.4 million during the same period last year.
Sales of low and no-load shares topped just $44.3 million in April of last year, a whopping 372 percent less than April 2016.
Jones Lang LaSalle Income Property Trust was the top selling program in April, with sales reaching $55.3 million for the month. Not far behind in second place was Strategic Storage Trust II with $52.6 million in sales for the month. Griffin Capital Essential Asset REIT II took third place with $43.2 million in sales, while Cole Office & Industrial REIT came in fourth with $40.7 million in sales. Industrial Property Trust came in fifth with April sales totals of $35.7 million.
