Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Tuesday, 20 November 2018

Non-Traded REITs Raise $1.22Bln in 3Q; Seen Easily Topping Last Year's Weak Volume

Non-traded REITs raised $1.22 billion of equity capital during the third quarter, bringing their capital-raising volume for the year so far to $3.3 billion, according to Summit Investment Research. The volume for the latest quarter was up just 1.6 percent from the second quarter, but it puts the sector well on track to beat last year's $3.9 billion of capital raising.

Commercial Real Estate Direct Staff Report

Non-traded REITs raised $1.22 billion of equity capital during the third quarter, bringing their capital-raising volume for the year so far to $3.3 billion, according to Summit Investment Research.

The volume for the latest quarter was up just 1.6 percent from the second quarter, but it puts the sector well on track to beat last year's $3.9 billion of capital-raising - its lowest volume since the Great Financial Crisis.

Blackstone Real Estate Income Trust remains the top dog in capital-raising among non-traded REITs, with $773 million, or 63.5 percent of the total raised during the quarter. It has led all companies in the sector since it was founded in late 2016. The company's capital-raising prowess is no doubt influenced by parent Blackstone Group's track record of managing real estate for institutions.

Meanwhile, Blackstone Group's constant activity in the capital markets gives it clout among broker-dealers and investment banks, particularly wire houses that have healthy retail investor bases, to market its REIT. So far this year, it has raised $2.1 billion - nearly two-thirds of the total for all active non-traded REITs.

Blackstone Real Estate is one of a growing number of non-traded REITs with perpetual lives. Traditional non-traded REITs generally plan for a liquidity event - a sale of assets, merger or stock listing. As such, they're considered lifecycle REITs. Those typically have carried relatively hefty upfront fees - of 7 percent or so - and limited individual...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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