Skip to content
The DI Wire
Click Here to Subscribe to Our Free Daily News Updates

Non-Traded NAV REITs Raised a Net Total of Negative $6.2 Billion in 2023

For all of 2023, non-traded net asset value real estate investment trusts reported nearly $10.2 billion of fundraising, $1.9 billion of dividend reinvestment, and $18.3 billion of redemptions, resulting in negative net fundraising of approximately $6.2 billion. In 2022, NAV REITs raised a net total of nearly $23.2 billion.

“Fundraising by NAV REITs in 2023 and so far in 2024 has remained muted. Since year-end 2021 the weighted average change in NAV per share has come down just 3.1% while their traded REIT counterparts have experienced an overall change in consensus analyst NAV of a negative 13.8% during the same period,” said Kevin T. Gannon, chairman of Robert A. Stanger & Co., Inc.

“Accordingly, investors have been withdrawing capital from NAV REITs to the tune of nearly $33 billion of redemptions over the last two-plus years,” added Gannon.

As of Feb. 29, 2024, NAV REITs had a combined aggregate NAV of $92.9 billion, a year-over-year decrease of nearly 15%.

For the full year of 2023, effective and currently offered non-listed business development companies reported nearly $21.2 billion of fundraising, $1.8 billion of dividend reinvestment, and $4.2 billion of redemptions resulting in net fundraising of approximately $18.8 billion as compared to nearly $22.3 billion of net fundraising in 2022.

“In terms of net fundraising levels, non-listed BDCs have held up much better than NAV REITs due to the generally higher average dividend levels of nearly 10.1% versus 5.4% in NAV REITs at year-end 2023,” said Randy Sweetman, executive managing director at Stanger.

As of Jan. 31, 2024, effective and currently offered non-listed BDCs had a combined aggregate NAV of approximately $58.9 billion, a year-over-year increase of nearly 55%.

Robert A. Stanger & Co., Inc., founded in 1978, is an 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.

Click here to visit The DI Wire directory page.