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Non-Traded REIT Sales Continued to Slump in May

Sales of non-traded real estate investment trusts continued to fall in May, according to data compiled by Robert A. Stanger & Co.

Equity REITs raised a total of $280.5 million in investor equity last month, a decrease of 26.5 percent from April’s total of $381.8 million. Year-to-date, equity REIT sales reached nearly $2 billion, a decrease of 56.2 percent from the same period in 2015 when sales totaled $4.5 billion.

Sales of mortgage REITs topped $26.4 million in May, down 16.2 percent from the month prior when total sales reached $31.5 million. Year-to date, mortgage REITs have raised a total of $164.2 million in investor equity, compared to $494.2 million in 2015, a decrease of 66.8 percent.

Sales of daily NAV REITs decreased 17.1 percent in May with sales reaching $61.4 million, compared to April when sales topped $74.1 million. Year-to-date daily NAV REIT sales in 2016 totaled $322.3 million, compared to just $183 million for the same period in 2015, an increase of 76.1 percent.

Sales of low and no-load shares of traditional and daily NAV REITs have been trending downward the past three months, although sales are much more robust than in 2015. Sales of shares decreased in May to $192.6 million, down 7.9 percent from April when sales topped $209.1 million.

Year-to-date sales of low and no-load shares continued to outperform sales made during the same period in 2015. Thus far in 2016, sales have reached $1 billion, compared to $292.4 million during the same period last year, a change of 246 percent.

Full commission shares continued their decline in May with sales totals reaching $96.4 million, a decrease of 40.3 percent compared to April’s totals of $161.5 million. Year-to-date sales of full commission shares reached $757.2 million so far in 2016, a 19.3 percent decrease compared to the $938.7 million raised during the same period last year.

Jones Lang LaSalle Income Property Trust was the top selling program in May, with sales reaching $45.1 million for the month. Griffin Capital Essential Asset REIT II came in second with $38.3 million in sales, while Dividend Capital’s Industrial Property Trust jumped to third with sales totaling $36.8 million. W.P. Carey’s Carey Watermark Investors 2 took fourth place with a monthly raise of $26.2 million, while Carter Validus Mission Critical REIT II followed closely with $25.9 million.

Three REITs that did not make the top five but continued to experience increasing sales over the last three months included Moody National REIT II and Griffin-American Healthcare REIT IV. Monthly sales totals for Cole’s Daily NAV increased from March to April, but remained unchanged from April to May.

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