Daily NAV REITs Post Another Quarter of Positive Returns in 3Q16
Summit Investment Research, a research and due diligence firm founded by Michael Stubben, recently released its dNAV REIT Index report for the third quarter of 2016 which compares quarterly returns of daily NAV real estate investment trusts over the last three years.
Daily NAV REITs are not actively traded on a market and typically have lower volatility than listed REITs, but they also have lower returns due to their higher front-end and on-going fee structures, according to the report.
In the third quarter of 2016, Summit’s dNAV REIT Index reported a 1.92 percent quarterly return, which is a second straight quarter of positive returns after posting the only negative quarterly return of -0.02 percent in the first quarter of this year.
Daily NAV non-listed REITs had a weighted average 1.04 percent quarterly distribution rate and average 0.88 percent increase in net asset values in the third quarter of 2016.
For the three years ended December 31, 2015, the Summit dNAV REIT Index reported a 7.47 percent average annual return. For the same three-year period, the FTSE NAREIT All Equity Index reported a 10.63 percent average annual return for listed equity REITs.
Summit Investment Research has been active since April 2016 and covers non-traded REITs, business development companies, interval funds, and listed REITs (that acquired non-traded REITs or were once non-traded). The company’s research can be utilized by a variety of industry clients including financial advisors, registered investment advisors, broker-dealers, sponsors, service providers like law firms, due diligence firms, industry organizations, and news organizations, and institutions.
