The Bluerock Total Income+ Real Estate Fund (Tickers: TIPRX, TIPPX, TIPWX, TIPLX), a closed-end interval fund, reported fourth quarter total returns of 2.57 percent for its Class I shares (TIPWX), 2.52 percent for Class A shares (TIPRX), 2.32 percent for Class C shares (TIPPX), and 2.43 percent for Class L shares (TIPLX), which the company said is its eighth consecutive year of positive total returns to shareholders.
In addition, Bluerock Total Income+ paid its 32nd consecutive quarterly distribution on December 14, 2020 at the annual distribution rate of 5.25 percent. The company indicated that distributions to Class A shareholders to-date have totaled $11.47 per share vs. the current share price of $29.24, as of December 31, 2020.
“In a challenging year plagued by the global health pandemic and a steep recession, the fund delivered its goals of positive returns with high income and low volatility…,” said Jeffrey Schwaber, chief executive officer of Bluerock Capital Markets. “This marks 30 of 33 quarters of positive returns for the Fund primarily invested in an asset class that has 39 of 43 positive years since its inception with an average unleveraged annualized return of approximately 9 percent.”
Adam Lotterman, co-founder of the fund’s advisor and senior portfolio manager, explained that the fund invested heavily in real estate sectors that “are driven by long-term, macro trends such as e-commerce, demographic shifts, and science and technology forces.”
“Specific sector overweighting included industrial, life science, multifamily and real estate debt which delivered strong outperformance in 2020 while the fund had significantly reduced its exposure to 2020’s weaker performing sectors such as office, retail and hotel,” said Lotterman.
As of the end of the fourth quarter, Bluerock Total Income+ reported gross asset value of the underlying portfolio of nearly $220 billion which was comprised of 4,300+ primarily core, high occupancy real estate holdings with sector weightings as follows: 35 percent industrial, 33 percent apartment, 14 percent specialty (including life science, medical office, and self-storage), 13 percent office and 5 percent retail. Bluerock indicated that approximately 95 percent of the fund’s allocation was to sectors with positive performance.
The Bluerock team remains bullish on institutional private real estate for 2021 as the economy is expected to further recover throughout the year, prompted by the development and rollout of a Covid-19 vaccine, likely leading to lower unemployment levels.
“A strengthening economy combined with a low interest rate environment have historically bolstered real estate performance,” the company said.
The inception dates for Class A and Class I shares is October 22, 2012 and April 1, 2014, respectively. The maximum sales charge for Class A shares is 5.75 percent.
The Bluerock Total Income+ Real Estate Fund is a closed-end interval fund that invests the majority of its assets in institutional private equity real estate securities. As of the fourth quarter of 2020, the value of the underlying real estate held by the securities in which the fund is invested is approximately $220 billion, and include investments managed by Ares, Blackstone, Morgan Stanley, Principal, PGIM, Clarion Partners, Invesco and RREEF, among others. The minimum investment is $2,500 ($1,000 for retirement plans) for Class A, Class C, and Class L shares.
The fund is sponsored by Bluerock and sub-advised by Mercer Investment Management, Inc., an advisor to endowments, pension funds, sovereign wealth funds and family offices with more than 3,300 clients globally and approximately $15 trillion in assets under advisement.