NAV REITs have posted a 1.68 percent total return in the first quarter of 2019, as measured by the Stanger NAV REIT Total Return Index and published in the Spring 2019 issue of the IPA/Stanger Monitor, a report sponsored by the Institute for Portfolio Alternatives and authored and published by Robert A. Stanger & Co. Inc. Last quarter, NAV REITs posted a three-month return of 1.67 percent.
NAV REITs are perpetual-life products that continue fundraising indefinitely while providing updated NAVs on a daily or monthly basis.
Stanger noted that while publicly-traded REITs had a 16.3 percent increase during the quarter in the MSCI US REIT Index Gross Total Return, this performance follows a 6.7 percent decline in the fourth quarter 2018.
Over the three-year period ended March 31, 2018, NAV REITs outperformed with a total return of 22.1 percent versus 19.1 percent for traded REITs, as measured by the MSCI Index.
“This performance only serves to highlight the benefits of a non-listed REIT vehicle, providing a real estate-based return without the ongoing volatility of the traded market,” according to Kevin Gannon, chairman and CEO of Stanger.
According to the report, as of March 31, 2019, the top three NAV REITs based on the share class generating the highest annualized total return include Hines Global Income Trust, Blackstone Real Estate Income Trust, and RREEF Property Trust. Total returns are calculated without sales load and with reinvestment where a distribution reinvestment plan is available.
Hines Global Income Trust (Class AX shares) had a one-year return of 9.46 percent, a two-year return of 8.89 percent, and a three-year return of 10.93 percent.
Blackstone REIT (Class I shares) came in second with a 8.57 percent return at one year and a 10.58 percent return at two years.
Third place went to RREEF Property Trust (Class I shares), which had a one-year return of 8.39 percent, a two-year return of 8.86 percent, and a three-year return of 8.85 percent.
The Stanger NAV REIT Index measures quarterly performance, and all NAV REITs with a minimum of one calendar quarter of performance are included in the index, which currently includes eight NAV REITs with a total of 37 separate share classes.
Robert A. Stanger & Co. is an investment banking firm specializing in providing strategic planning, investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts, and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations and consolidations. Stanger’s publications include The Stanger Report, a newsletter focused on direct participation programs and non-traded REIT investing; The Stanger Market Pulse, focused on public DPP, non-traded REIT and BDC sales; The Stanger Interval Fund Report, focused on non-traded interval fund investing, and the Stanger Digest, a newsletter providing a weekly update on industry activities.