Non-listed REITs raised $4.6 billion in 2Q14, which is a 7% increase from 1Q14. For 2Q14 year-to-date, non-listed REITs have raised $8.8 billion, which is a 2% increase from the $8.6 billion raised in the first half of 2013.
With additional liquidity events announced and anticipated in the second half of 2014, non-listed REITs may be able to exceed the $20 billion equity raised in 2013.
The high distribution rates of non-listed REITs continue to make them attractive in the current low interest rate environment.
ARC continues to dominate non-listed REIT fundraising with a 50% market share in 2Q14.
ARC Global Trust led all non-listed REITs with $1.0 billion equity capital raised followed by ARC Healthcare Trust II and Carter Validus Mission Critical REIT with $722 million and $671 million respectively.
The top ten non-listed REIT fundraisers represented 80% of all equity raised in 2Q14.
ARC’s fundraising dominance also extended into non-listed BDC fundraising. Non-listed BDCs experienced a fundraising decline in 2Q14, as their $1.4 billion equity raise in 2Q14 was a 7% decrease from the $1.5 billion equity raised in 1Q14.
ARC’s Business Development Corporation of America was the top fundraising non-listed BDC with $408 million raised in 2Q14. FS Energy & Power and Corporate Capital Trust were the next highest fundraisers with $338 million and $232 million respectively.
Article by Michael Stubben, President of MTS Research Advisors
MTS Research Advisors is a provider of data and analytics for non-traded REITs and BDCs.