Public nonlisted real estate funds, especially nontraded REITs (NTRs), have been on fire the past two years. 2021 proved to be a record-setting year with $36.5 billion raised, and 2022 wasn’t far behind. 2023 is a different story altogether.
Fundraising among nontraded real estate investment trusts in February 2023 sank to just $489 million, a low not seen since August 2020, while reported monthly redemptions have exceeded $1.7 billion, an amount reflecting 351 percent of fundraising and about 1.6 percent of reported net asset value (NAV) for the industry, according to Robert A. Stanger and Co.
When redemption requests outpace capital inflows, it’s time to take a deeper look.
Read the full story in the May issue of Real Assets Adviser, here.