Robert A. Stanger & Company has reported that net asset value REITs posted a solid second quarter, with a 2.01 percent total return as measured by the Stanger NAV REIT Total Return Index.
Stanger noted that NAV REITs have produced steady quarterly gains over the last 36 months posting consistent returns totaling 23 percent over this period.
In contrast, the listed REIT counterparts produced a 1.29 percent return for the second quarter of 2019, as measured by the MSCI US REIT Index Gross Total Return (RMS G) and provided a much bumpier ride over the prior three years. For the 36 months ended June 30, 2019, listed REITs, as measured by the MSCI Index, provided a 12.9 percent total return.
“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.
These results are published in the newly released Summer 2019 issue of the IPA/Stanger Monitor that includes the individual performance data on more than 59 non- listed REITs, with a combined market capitalization in excess of $51 billion, and 16 non-listed business development companies, with a combined market capitalization of $13 billion.
The IPA/Stanger Monitor is sponsored by the Institute for Portfolio Alternatives (IPA) and authored and published by Robert A. Stanger & Co. Inc.
“The IPA believes that performance reporting of non-listed REITs and BDCs provides the most comprehensive view of portfolio diversifying investments,” said IPA president and CEO Tony Chereso. “This transparency can better inform investors and financial advisors alike allowing for effective comparisons to more widely available products in the broader equity markets.”
Robert A. Stanger & Co, founded in 1978, is a nationally recognized investment banking firm specializing in providing 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 is also known for its flagship publication, The Stanger Report, a newsletter focused on direct participation program and non-traded REIT investing; The Stanger Market Pulse, focused on public DPP, non-traded REIT and non-traded BDC sales; The IPA/Stanger Monitor, focusing on non-traded REIT performance, The Stanger Interval Fund Report, focusing on non-traded interval fund investing, and The Stanger Digest, a newsletter providing a weekly update on industry activities.