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Non-Traded REIT Transactions Up During Second Quarter

Part 2 of 3

In part one of this three-part article on Blue Vault’s non-traded REIT review, we reported that sales by non-traded REITs during the second quarter of 2015 totaled an estimated $2.56 billion, down from the $3.28 billion recorded in the first quarter of 2015, and below the average quarterly totals for 2014 of $3.95 billion. The review also says that the volume of property acquisitions by non-traded REITs exceeded that of the first quarter of 2015.

According to the review, a total of 253 properties were purchased for an aggregate acquisition price of $6.31 billion, a gain of 10 percent over the first quarter total. “At the end of the quarter, open REITs had $1.48 billion in cash on their balance sheets with which to fund acquisitions, down from $2.57 billion in cash among open REITs at year-end 2014,” Blue Vault explains.

And the report also says that property dispositions for all non-traded REITs totaled $1.83 billion for the second quarter of 2015, up from the $1.43 billion in the first quarter of 2015, and above the average quarterly totals for 2014 of $1.63 billion. “The six most active REITs in terms of dispositions accounted for 93 percent of the industry total in the second quarter and one REIT, CNL Lifestyle Properties, accounted for 48 percent of the total with its 38 property sales,” the company says.

Check back for part three from this review, where we show who Blue Vault lists as the most active non-traded REITs in terms of dispositions and acquisitions during 2Q15.