Steadfast Income REIT Reports First Quarter Results

Steadfast Income REIT Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the first quarter of 2018.

For the three months ended March 31, 2018, the company sold 11 multifamily properties, including the contribution of eight properties to a joint venture with Blackstone Real Estate Investment Trust Inc., for a gross sales price of $256.1 million, exclusive of closing costs, for a gain on sales of real estate of $81.2 million.

The company noted that the reduced size of its portfolio had a significant impact on its first quarter 2018 operating results, compared to the first quarter of 2017.

During the first quarter of 2018, the company had total revenues of $35.5 million compared to $54.3 million for same period last year. Net income was $73.3 million for the first quarter of 2018, compared to net loss of $5.6 million for the first quarter of 2017. Total assets of the company at March 31, 2018, were $1.14 billion compared to $1.25 billion at December 31, 2017.

First Quarter 2018 Highlights:

• Experienced a decrease in net operating income from $28.3 million for the first quarter of 2017, to NOI of $19.1 million for the first quarter of 2018.

• Experienced a decrease in modified funds from operations, as defined by the Institute for Portfolio Alternatives (formerly known as the Investment Program Association), from $12.6 million for the first quarter of 2017, to MFFO of $7 million for the first quarter of 2018.

• Experienced a decrease in funds from operations, as defined by the National Association of Real Estate Investment Trusts, from $12.3 million for the first quarter of 2017, to FFO of $4.9 million for the first quarter of 2018.

• Reported net cash used in operating activities of $1.5 million for the first quarter of 2018, compared to net cash provided by operating activities of $0.3 million for the same period last year.

• Net cash provided by investing activities was $172.4 million for the first quarter 2018, compared to net cash used in investing activities of $4.3 million for the first quarter 2017

• Net cash used in financing activities of $92.5 million for the first quarter of 2018, which included $13.3 million of cash distributions. Net cash used in financing activities was $17.8 million for the first quarter of 2017, which included $13.4 million of paid cash distributions.

• Owned a multifamily property portfolio of 37 properties with a total purchase price, excluding closing costs, of $1 billion and a 10 percent ownership interest in the joint venture with Blackstone REIT.

• Had $320.2 million of fixed rate debt with a weighted-average interest rate of 3.82 percent and $402.6 million of variable rate debt with a weighted-average interest rate of 4.10 percent as of March 31, 2018. The weighted average interest rate on the company’s total outstanding debt was 3.98 percent as of March 31, 2018;

• Funded $1.4 million for improvements to real estate investments for the first quarter of 2018, compared to $4.5 million for the first quarter of 2017.

“According to CBRE Econometric Advisors’ market outlook for 2018, rent growth in the suburbs over the past two years has averaged 3.4 percent nationally while downtown rents have grown at just 0.6 percent over the same period,” said Ella Neyland, president of the company. “We believe this validates the company’s investment thesis that most of America is choosing to live in moderate income apartments in a more suburban setting.”

Steadfast Income REIT invests primarily on the multifamily sector, including stable, income-producing and value-added properties. The company launched its initial public offering in July 2010 and concluded its offering in December 2013 after raising $745 million in investor equity.

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Steadfast Income REIT Declares Special Distribution, Reinstates Share Repurchase Plan

The board of Steadfast Income REIT, a publicly registered non-traded real estate investment trust, has authorized a $1.00 per share special distribution in lieu of the previously announced anticipated self-tender offer. The board also determined to reinstate and amend the company’s share repurchase program.

Last month, the company declared a $10.84 net asset value per share for its common stock, as of December 31, 2017, a 7 percent decrease from last year’s $11.65 NAV per share. To offer shareholders immediate liquidity, the board authorized a $100 million tender offer with shares of common stock priced at $9.00 each. In connection with the offer, the company also planned to temporarily suspend its share repurchase program at the end of the month.

In letter to shareholders, the company said that “it received early indications that the tender offer would likely be over-subscribed, resulting in a low pro-rata distribution to tendering stockholders that would negate much of the intended benefit.”

The $1.00 special distribution is payable to stockholders of record at the close of business on April 20, 2018. Steadfast Income REIT expects to pay the special distribution on May 1, 2018, primarily consisting of net proceeds received from the $460.8 million joint venture transaction with Blackstone Real Estate Income Trust Inc.

In connection with the special distribution, stockholders’ customer account statements will be updated to reflect an estimated value per share equal to $9.84. There will also be an approximate one-month delay in processing first quarter share redemption requests.

In connection with reinstating the share repurchase program, the repurchase price was revised to $9.15 per share, which represents 93 percent of the estimated value of $9.84 per share. The repurchase price for shares redeemed upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares.

Steadfast Income REIT invests primarily on the multifamily sector, including stable, income-producing and value-added properties. The company launched its initial public offering in July 2010 and concluded its sales of shares of common stock in December 2013 after raising $745 million in investor equity. The company owns a multifamily property portfolio of 48 properties with a total purchase price of $1.2 billion.

For more Steadfast related news, visit their directory page here.


Blackstone REIT Updates NAV Per Share

Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), updated its aggregate monthly net asset value for its Class S, Class I, Class D and Class T shares of common stock, as of March 31, 2018.

According to a filing with the Securities and Exchange Commission, Class S shares, which are purchased through brokerage and transaction-based accounts, have a net asset value per share of approximately $10.68. As of February 28, 2018, Class S shares had a monthly net asset value of approximately $10.67 each.

Class I shares, which have a net asset value per share of approximately $10.66, are sold to endowments, foundations, pension funds and other institutional investors, as well to REIT executives, directors, and their immediate family members. As of February 28, 2018, Class I shares had a net asset value per share of approximately $10.66.

Class D shares have a net asset value per share of approximately $10.56 each and are sold through fee-based programs known as wrap accounts, and through participating broker-dealers, certain registered investment advisers, and through bank trust departments or other organizations. Class D shares had a NAV per share of approximately $10.55 as of February 28, 2018.

Class T shares have a per share NAV of approximately $10.51 and are available through brokerage and transaction-based accounts. As of February 28, 2018, Class T shares had a per share NAV of $10.50.

Blackstone Real Estate Income Trust, a perpetual life, monthly NAV REIT, invests in stabilized income-oriented commercial real estate in the United States and real estate-related securities. The company is headquartered in New York City and externally managed by BX REIT Advisors., a subsidiary of Blackstone. Blackstone REIT has raised more than $2.5 billion in investor equity since inception and oversees a $7 billion portfolio comprised of 272 individual properties, as of March 2018.

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Stanger: Non-Traded REIT Fundraising Increases Nearly 7% in the First Quarter 2018

Fundraising for non-traded real estate investment trusts jumped to $938.1 million during the first quarter of 2018, a 6.9 percent increase compared to the $871.6 million raised in the fourth quarter of 2017, according to Robert A. Stanger & Company Inc. This represents the second fundraising increase in recent quarters, as non-traded REIT fundraising rose 10.5 percent from the third to fourth quarters of 2017.

“The single event that is allowing the industry to turn the corner is the entry of Blackstone into the non-listed REIT market and the distribution of their product by Wall Street investment banks,” says Kevin Gannon, chairman of Robert A. Stanger & Company.

Blackstone Real Estate Income Trust raised more than $1.8 billion dollars in 2017, and $633 million in the first quarter of 2018, or approximately 67 percent of all funds raised by non-traded REITs in 2018.

Stanger pointed out that the success of the Blackstone’s NAV REIT, as well as the recognition that an increasing proportion of national retirement savings will be under the control of retail investors and their advisers, has led to the recent entry of other name–brand institutional money managers, including Starwood, Cantor Fitzgerald, Nuveen/TIAA, Oaktree and Rialto.

“We believe this ongoing entry of more world-class sponsors offering improved products and the addition of Wall Street distribution channels represent the first step toward a dramatically broadened acceptance of these products,” added Gannon.

Stanger indicated that there appears to be a shift from “traditional” finite life non-traded REITs to perpetual life NAV REITs, driven in large part by Blackstone’s success in the space. NAV REITs offer regular liquidity at net asset value, while “traditional” REITs offer investment opportunities for a five to seven year holding cycle.

Starwood, Nuveen, FS Rialto, and Oaktree recently introduced new NAV REIT products, while Black Creek Group, Griffin Capital, and Hines have converted certain “traditional” non-traded REIT programs into NAV REITs.

The top five non-traded REIT sponsors in the first quarter of 2018 were The Blackstone Group, which captured two-thirds of the current market with nearly $632.8 million raised, Black Creek Group was in a distant second with 6 percent of the market and $56.6 million raised, followed closely by Griffin Capital, CIM Group’s Cole products, and Carter Validus.

Griffin Capital raised approximately $53 million and held 5.7 percent of the market; CIM Group raised $46.6 million with a 5 percent market share, and Carter Validus raised $34.1 million with a 3.6 percent share.

Blackstone also leads NAV REIT performance over the 12-month period ended February 2018, posting a total return of 11.6 percent, before fees. During the same period, RREEF Property Trust had a total return of 7.1 percent, followed by Cole Real Estate Income Strategy (Daily NAV) with 6.7 percent, and Black Creek Diversified Property Fund with 2.7 percent. JLL Income Property Trust had a one-year total return of 7.6 percent for the 12-month period ended December 31, 2017.

Stanger also noted that the publicly-traded REIT sector showed more volatility and weakness over the same period, as represented by the RMS G Total Return Index which was down 10.2 percent.

During the first quarter of 2018, more than $2.3 billion of Lifecycle REIT equity was monetized through the merger and listing of the NorthStar Real Estate Income REITs into Colony NorthStar Credit Real Estate Inc., and special liquidating distribution made by American Realty Capital Healthcare Trust III and Carter Validus Mission Critical REIT.

Robert A. Stanger & Company Inc. is an investment banking firm specializing in real estate and direct participation program securities. The company is regularly involved in real estate mergers and acquisitions, debt and equity financings, real estate appraisals and securities valuations.

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Summit: Non-Traded REITs End 2017 with Nearly $4 Billion Raised

Non-traded real estate investment trusts raised a total of $879 million in capital in the fourth quarter of 2017, bringing the total for the year to $3.9 billion, according to the latest Non-Listed REIT Market Snapshot issued by research and due diligence firm Summit Investment Research. During the third quarter, non-traded REITs raised just $782 million.

Fundraising in 2017 represents a 19 percent decrease from 2016’s total of $4.8 billion and 81 percent decline from the $20 billion peak in 2013.

Blackstone Real Estate Income Trust, the non-traded REIT sponsored by private equity behemoth The Blackstone Group (NYSE: BX), continued to dominate the space with $473 million in equity raised during the fourth quarter and a staggering $1.4 billion for the year. Blackstone REIT broke escrow in January 2017 and held a 54 percent share of the market during the quarter.

Carter Validus Mission Critical REIT II was the second highest fundraiser in the fourth quarter with $126 million raised, followed by Griffin-American Healthcare REIT IV with $60 million raised. Cole Real Estate Income Strategy (Daily NAV) was not far behind with a $49 million equity raise during the quarter.

Cap rate compression, which highlights commercial real estate price increases, is driven by interest rates on new debt. Cap rates ticked up from 6.3 percent in 2016 to 6.6 percent in 2017 after a steady 8-year decline. Average interest rates on new permanent debt increased from 3.7 percent to 3.9 percent year-over-year.

Occupancies for non-listed REITs remained unchanged at 93 percent during the fourth quarter, while average lease terms for retail, office, and industrial properties decreased slightly to 7.8 years from 7.9 years last quarter.

Summit reported that the leverage ratio for non-traded REITs increased to a moderate 42 percent from 38 percent in 2016, which is comparable to publicly traded REITs. Variable debt ratios dropped slightly to 33 percent in the fourth quarter of 2017, the lowest level since 2013. However, this is nearly double the 17 percent variable debt ratio in 2012.

Non-traded REITs raised $365 million through their distribution reinvestment programs in the fourth quarter, a slight increase from last quarter’s raise of $354 million. Summit noted that reinvested distributions will continue to provide significant capital for redemptions and new investments by non-listed REITs, as only a few large REITs are currently liquidating assets.

Share redemptions remained high over the last two years and were $453 million during the fourth quarter, compared to $319 million last quarter. Most non-traded REITs cap annual share redemptions at 5 percent of outstanding shares, and Summit noted that some closed programs have terminated their share redemption programs or are hitting their quarterly share redemption limits. Non-traded REITs have redeemed a record $1.5 billion in equity over the trailing four quarters.

Summit Investment Research has been active since April 2016 and covers non-traded REITs, business development companies, interval funds, and listed REITs (that acquired non-traded REITs or were once non-traded). The company’s research is utilized by financial advisors, registered investment advisors, broker-dealers, sponsors, service providers such as law firms, due diligence firms, industry organizations, and news organizations, and institutions.

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Steadfast Income REIT Lowers NAV and Distribution Rate

Steadfast Income REIT, a publicly registered non-traded real estate investment trust, has updated the net asset value per share for the company’s common stock to $10.84 per share. The company’s previous NAV per share was $11.65, as of December 31, 2016, which represents a decrease of nearly 7 percent.

In a letter to shareholders and a video to advisors outlining the reasons for the decline, the company explained that oil price volatility in recent years impacted markets like Houston and Oklahoma City where it maintains a significant presence. The company believes that these markets are improving and continue to exhibit upside potential.

Additionally, the REIT sold properties where the proceeds had not been deployed before the year-end valuation, and uninvested cash creates a drag on funds from operation until deployed.

Other reasons include transaction costs incurred from the joint venture sale with Blackstone REIT, 2017 redemptions calculated at the previous $11.65 NAV per share, and distributions were paid in cash rather than the industry average of 50 percent cash and 50 percent shares of common stock.

The board lowered the annual distribution rate from 7 percent to 6 percent based on the purchase price of $10.24 per share. The new distribution rate started accruing on April 1st and will be paid in May.

The board also authorized a tender offer for up to $100 million shares of common stock priced at $9.00 per share for shareholders who desire immediate liquidity. In connection with the offer, the company’s share repurchase program will be temporarily suspended at the end of the month.

To date, Steadfast Income has provided shareholders with returns of between $2.93 and $5.29 per share on offering prices of $10.00 to $10.24 per share, depending on the timing of the initial investment.

Steadfast Income REIT invests primarily on the multifamily sector, including stable, income-producing and value-added properties. The company launched its initial public offering in July 2010 and concluded its sales of shares of common stock in December 2013 after raising $745 million in investor equity. The company owns a multifamily property portfolio of 48 properties with a total purchase price of $1.2 billion.

For more Steadfast related news, visit their directory page here.


Blackstone REIT Updates NAV Per Share

Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), updated its aggregate monthly net asset value for its Class S, Class I, Class D and Class T shares of common stock, as of February 28, 2018.

According to a filing with the Securities and Exchange Commission, Class S shares, which are purchased through brokerage and transaction-based accounts, have a net asset value per share of approximately $10.67. As of January 31, 2018, Class S shares had a monthly net asset value of approximately $10.63 each.

Class I shares, which have a net asset value per share of approximately $10.66, are sold to endowments, foundations, pension funds and other institutional investors, as well to REIT executives, directors, and their immediate family members. As of January 31, 2018, Class I shares had a net asset value per share of approximately $10.62.

Class D shares have a net asset value per share of approximately $10.55 each and are sold through fee-based programs known as wrap accounts, and through participating broker-dealers, certain registered investment advisers, and through bank trust departments or other organizations. Class D shares had a NAV per share of approximately $10.52 as of January 31, 2018.

Class T shares have a per share NAV of approximately $10.50 and are available through brokerage and transaction-based accounts. As of January 31, 2018, Class T shares had a per share NAV of $10.47.

Blackstone REIT has scheduled its 2018 annual meeting of stockholders to take place on Tuesday, June 11, 2018, at 5:00 p.m. EST at the offices of Simpson Thacher & Bartlett LLP in New York City.

Stockholders will be asked to elect seven directors to the board and ratify the appointment of Deloitte & Touche LLP as the company’s independent registered public accounting firm.

In other Blackstone REIT news, the company recently purchased the Canyon Industrial Portfolio, a 22 million-square-foot portfolio of industrial assets, for approximately $1.8 billion.

Blackstone Real Estate Income Trust, a perpetual life, monthly NAV REIT, invests in stabilized income-oriented commercial real estate in the United States and real estate-related securities. The company is headquartered in New York City and externally managed by BX REIT Advisors., a subsidiary of Blackstone. Blackstone REIT has raised more than $2.3 billion in investor equity since inception and oversees a $7 billion portfolio comprised of 272 properties.

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Blackstone REIT Portfolio Tops $7 Billion with Latest $1.8 Billion Portfolio Acquisition

Blackstone Real Estate Income Trust Inc., a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), has acquired the Canyon Industrial Portfolio, a 22 million-square-foot portfolio of industrial assets, for approximately $1.8 billion. The seller was Cabot Industrial Value Fund IV L.P. and Cabot Industrial Value Fund IV Manager LP.

The Canyon Industrial Portfolio is comprised of 146 last-mile infill warehouses and distribution buildings with major concentrations in Chicago, Dallas, Baltimore/Washington D.C., Los Angeles/Inland Empire and South/Central Florida. Property tenants include Amazon, FedEx, DHL, Coca-Cola, Fiat Chrysler and the U.S. Government.

“The Canyon transaction exemplifies Blackstone REIT’s focus on real estate asset classes and geographic markets with attractive fundamentals. Blackstone REIT’s portfolio, with its emphasis on stable, income-producing warehouse and apartment assets, is well-positioned to benefit from continued tailwinds in these sectors,” said A.J. Agarwal, president of Blackstone REIT.

The acquisition was funded through a combination of a $1.1 billion mortgage secured by the portfolio, a $200 million mezzanine loan secured by equity interests in the portfolio, and available cash.

With the closing of this acquisition, the company’s portfolio now totals $7 billion in gross asset value across 272 assets primarily concentrated in 33 million square feet of industrial assets and 17,200 multifamily apartments, with modest exposure to select-service hotels and grocery-anchored shopping centers.

Blackstone Real Estate Income Trust, a perpetual life, monthly NAV REIT, invests in stabilized income-oriented commercial real estate in the United States and real estate-related securities. The company is headquartered in New York City and externally managed by BX REIT Advisors., a subsidiary of Blackstone. Blackstone REIT has raised more than $2.3 billion in investor equity since inception.

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Blackstone REIT Updates NAV Per Share

Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), updated its aggregate monthly net asset value for its Class S, Class I, Class D and Class T shares of common stock, as of January 31, 2018.

According to a filing with the Securities and Exchange Commission, Class S shares, which are purchased through brokerage and transaction-based accounts, have a net asset value per share of approximately $10.63. As of December 31, 2017, Class S shares had a monthly net asset value of approximately $10.58 each.

Class I shares, which have a net asset value per share of approximately $10.62, are sold to endowments, foundations, pension funds and other institutional investors, as well to REIT executives, directors, and their immediate family members. As of December 31, 2017, Class I shares had a net asset value per share of approximately $10.57.

Class D shares have a net asset value per share of approximately $10.52 each and are sold through fee-based programs known as wrap accounts, and through participating broker-dealers, certain registered investment advisers, and through bank trust departments or other organizations. Class D shares had a NAV per share of approximately $10.47 as of December 31, 2017.

Class T shares have a per share NAV of approximately $10.47 and are available through brokerage and transaction-based accounts. As of December 31, 2017, Class T shares had a per share NAV of $10.42.

Blackstone Real Estate Income Trust invests in stabilized income-oriented commercial real estate in the United States and real estate-related securities. The company is headquartered in New York City and externally managed by BX REIT Advisors., a subsidiary of Blackstone. The REIT oversees a $4.8 billion portfolio with 80 percent allocated in real estate and 20 percent in debt securities. The company’s property portfolio includes 29 properties (115 buildings) purchased for approximately $3.6 billion, as of December 2017. BREIT has raised more than $2 billion in investor equity since inception.

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Blackstone REIT Updates NAV Per Share

Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), updated its aggregate monthly net asset value for its Class S, Class I, Class D and Class T shares of common stock, as of December 31, 2017.

According to a filing with the Securities and Exchange Commission, Class S shares, which are purchased through brokerage and transaction-based accounts, have a net asset value per share of approximately $10.58. As of November 30, 2017, Class S shares had a monthly net asset value of approximately $10.52 each.

Class I shares, which have a net asset value per share of approximately $10.57, are sold to endowments, foundations, pension funds and other institutional investors, as well to REIT executives, directors, and their immediate family members. As of November 30, 2017, Class I shares had a net asset value per share of approximately $10.51.

Class D shares have a net asset value per share of approximately $10.47 each and are sold through fee-based programs known as wrap accounts, and through participating broker-dealers, certain registered investment advisers, and through bank trust departments or other organizations. Class D shares had a NAV per share of approximately $10.41 as of November 30, 2017.

Class T shares have a per share NAV of approximately $10.42 and are available through brokerage and transaction-based accounts. As of November 30, 2017, Class T shares had a per share NAV of $10.36.

Blackstone Real Estate Income Trust invests in stabilized income-oriented commercial real estate in the United States and real estate-related securities. The company is headquartered in New York City and externally managed by BX REIT Advisors., a subsidiary of Blackstone. The REIT oversees a $4.8 billion portfolio with 80 percent allocated in real estate and 20 percent in debt securities. The company’s property portfolio includes 29 properties (115 buildings) purchased for approximately $3.6 billion. BREIT has raised approximately $1.9 billion in investor equity since inception.

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