Non-traded REITs are public companies, but their shares aren’t listed on any stock exchange. In reality, this makes non-traded REITs a very opaque and private market (not to mention illiquid). REIT Wrecks has decided to pull the curtain on this lack of transparency and compile a list of non-traded REITs and their vital statistics.
If you’re thinking about buying one of these things, do yourself a favor and read this post on Non-Traded REITS first. You can find current information, including earnings analysis, valuation estimates and other related news on the Non-Traded REIT Forum. Click here for an updated list of Non-Traded REITs ranked by total assets
In the meantime, the market is getting crowded. According to Bank of Montreal, there were 44 non-traded REITs operating as of September 2008. As of the end of 2009, there were another $19 billion in non-traded REITs in registration, and nearly $2 billion in still more registrations had been announced as of early 2010.
Non-traded REITs are a unique breed of REIT that investors should investigate carefully before signing any subscription agreements. Many (but not all) REIT dividends in this space are being paid from borrowings and capital – not funds from operations. This is obviously no bueno. This list includes working links to the home page of each REIT, current yields vs. offering yields and current redemption policies, all of which are critical elements in evaluating any investment.
NON TRADED REIT DIRECTORYLast Update: April 29, 2011 click here for a summary of non-traded reit dividend payout ratios |
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|---|---|---|---|
| REIT NAME | OFFERING YIELD | CURRENT YIELD | REDEMPTION POLICY |
| American Realty Capital New York Recovery REIT | 6.05% | 6.05% | 5% of shares outstanding |
| American Realty Capital Trust | 6.5% | 7.0% | 5% of Shares Outstanding |
| American Realty Capital Trust II | Registration | Registration | Registration |
| American Realty Capital Trust III | Registration | Registration | Registration |
| American Realty Capital – Retail Centers of America | Registration | Registration | Registration |
| Apple REIT Six | 8.2% | 7.2% | 3% of shares outstanding |
| Apple REIT Seven | 8% | 7% | 3% of shares outstanding |
| Apple REIT Eight | 8% | 7% | 3% of shares outstanding |
| Apple REIT Nine | 8% | 8% | 3% of shares outstanding |
| Apple REIT Ten | Registration | Registration | Registration |
| Behringer Harvard REIT I | 6.5% | 1.0% | |
| Behringer Harvard Multi-Family REIT I | 7% | 6.0% | DRIP Proceeds plus 1% of operating cash flow |
| Behringer Harvard Opportunity REIT I | 6.5% | 1.0% | Suspended |
| Bluerock Enhanced Multi-Family Trust | 7% | 7% | 5% of shares outstanding |
| Carey Watermark Inc.’ | Escrow | Escrow | Escrow |
| Carter Validus Mission Critical REIT | Escrow | Escrow | Escrow |
| Clarion Properties Trust | Registration | Registration | Registration |
| CM REIT | Registration | Registration | Registration |
| CNL Lifestyle Properties | 6.15% | 6.25% | 5% of shares outstanding |
| CNL Diversified Lifestyle Properties | Registration | Registration | Registration |
| CNL Macquarie Global Growth Trust | 8% | 8% | 5% of shares outstanding |
| CNL Macquarie Global Income Trust | 6.5% | 6.5% | 5% of shares outstanding |
| Cole Advisor Corporate Income Trust | Registration | Registration | Registration |
| Cole Advisor Retail Income REIT | Registration | Registration | Registration |
| Cole Credit Property Trust | 7% | 5% | Suspended |
| Cole Credit Property Trust II | 7% | 6.25% | Suspended |
| Cole Credit Property Trust III | 6.75% | 6.5% | <DRIP proceeds or 5% of shares outstanding |
| Cornerstone Core Properties REIT | 4.8% | 0.8% | <DRIP proceeds or 5% of shares outstanding |
| Cornerstone Healthcare Plus REIT (f/k/a Cornerstone Growth & Income REIT) | 5.6% | 7.5% | 5% of shares outstanding |
| Corporate Income Properties – ARC, Inc | Registration | Registration | Registration |
| Desert Capital | 9% | Suspended | Suspended |
| Dividend Capital Total Realty Trust | 6% | 6% | <DRIP proceeds or 1.25% of shares outstanding |
| Empire American Realty Trust | Escrow | Escrow | Escrow |
| GC Net Lease REIT | 6.75% | 6.75% | 5% of shares outstanding |
| Grubb & Ellis Apartment REIT | 7% | 6% | Suspended |
| Grubb & Ellis Healthcare REIT II | 6.5% | 6.5% | 5% of shares outstanding |
| Hartman REIT Short Term XX | Escrow | Escrow | <DRIP proceeds plus 1% of cash flow or 5% of shares outstanding |
| Healthcare Trust of America (f/k/a Grubb & Ellis Healthcare REIT) | 7.25% | 7.25% | 5% of shares outstanding |
| Hines REIT | 6% | 5.50% | Suspended |
| Hines Global REIT | 7% | 7% | 5% of shares outstanding |
| Income Property Trust of Americas | Registration | Registration | Registration |
| Industrial Income Trust | 6.25% | 6.25% | 5% of shares outstanding |
| Inland American |
6% | 5% | Suspended |
| Inland Diversified | 6% | 6% | 3% of shares outstanding |
| Inland Western | 7% | 2.00% | Suspended |
| KBS REIT I | 7% | 5.25% | Suspended |
| KBS REIT II | 6.5% | 6.5% | 5% of shares outstanding |
| KBS REIT III | Escrow | Escrow | Escrow |
| KBS Legacy Apartment Properties | Escrow | Escrow | Escrow |
| KBS Strategic Opportunity REIT | Escrow | Escrow | Escrow |
| Lightstone Value Plus REIT | 7% | 7% | 2% of shares outstanding |
| Lightstone Value Plus REIT II | 6.5% | 6.5% | 2% of shares outstanding |
| Moody National REIT I | 8% | 8% | 5% of shares outstansing |
| NorthEnd Income Properties Trust | Registration | Registration | Registration |
| Northstar Real Estate Income Trust | Escrow | Escrow | Escrow |
| Northstar Senior Care Trust | Registration | Registration | Registration |
| O’Donnell Strategic Gateway REIT | Registration | Registration | Registration |
| Pacific Office Properties | 7.25% | 7.25% | Listed Common Stock after 5 years |
| Paladin Realty Income Securities | 6% | 6% | 10% of shares outstanding |
| Phillips Edison – ARC Shopping Center REIT | Escrow | Escrow | Escrow |
| Piedmont REIT (formerly Wells REIT) | Publicly listed | Publicly listed | Publicly listed |
| Prime Group Realty Trust | 6% | 0% | Suspended |
| Prime Realty Income Trust | Registration | Registration | Registration |
| Resource Real Estate Opportunity REIT | Escrow | Escrow | Escrow |
| Shopoff Properties Trust | None | None | None |
| Strategic Storage Trust | 7% | 7% | 5% of shares outstanding |
| TNP Strategic Retail Trust | 6.75% | 7% | <DRIP proceeds or 5% of shares outstanding |
| W.P. Carey CPA 14 | Merged into CPA 16 | Merged into CPA 16 | Merged into CPA 16 |
| W.P. Carey CPA 15 | 6% | 7.25% | Suspended |
| W.P. Carey CPA 16 | 6% | 6.6% | 5% of shares outstanding |
| W.P. Carey CPA 17 | 6.29% | 6.40% | 5% of shares outstanding |
| Wells Core Office Income REIT | 5% | 5% | <DRIP proceeds or 5% of shares outstanding |
| Wells REIT II | 6% | 6% | <DRIP proceeds or 5% of shares outstanding – But only at 60% of original cost |
| Wells Timberland REIT | 2% | 2% | <DRIP proceeds or 5% of shares outstanding – 91% of original cost |
| Whitestone REIT | Publicly listed | Publicly listed | Publicly listed |
See also the REIT Definition post, which provides more information on how REITs work.
Click here for a list of Apartment REITs
Click here for a list of Healthcare REITs
Click here for a list of Hotel REITs
Click here for a list of Industrial REITs
Click here for a list of Office REITs
Click here for a list of Retail REITs
Click here for a list of Storage REITs
Click here for a list of REIT Funds
Click here for a REIT ETF List
Click here for a list of all REITs
Click here for a list of REITs paying dividends in stock
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This is useful info. Where does it come from and when was it updated?
Hi Grant, thanks. The last update was three weeks ago (mid January 2010), and I update it each quarter as time permits.
In most cases, the yield and stock redemption details come from public filings, either the prospectus or the latest 10Q (to the extent management includes such the information in the Q). I personally read the prospectuses and 10Qs.
The 10Qs and 10ks are becoming more interesting, and I am starting to post more of this kind of information on the Non-Traded REIT Forum.
It's brand new and I think it's a little better than this format. Obviously, forums are much better for facilitating discussion, and it allows for far better commenting – you can upload all kinds of documents, including pictures (charts/graphs), post links, search more easily and so forth.
Cheers, REIT Wrecks
I own some shares of the Healthcare Trust of America REIT. As far as I know, it’s paying 7.25%, not 6%.
Thanks for posting a directory of Non-Traded REITs. I’m helping my parents choose their next investment, so far we think we’ll go with Cole Capital. There are a lot more to choose from than we expected.
Amy, you are correct – Healthcare Trust of America is paying 7.25%, and it looks like the HTA IPO is on the way too.
I’d like to hear from anyone, ANYONE who has ever got their investment back from one of these REITS? Even if it’s only half or more please let us know?
Under no circumstances should anyone buy or “invest” in a non-traded REIT. No way, no how. I want to put my story out here to warn others. Thank you for this forum.
When I was talked into this, I thought the person I was talking too was a financial advisor. Why would a true financial advisor not want to give you good advice to help you? (Please anyone thinking of investing read up on the difference and on fudiciary duty and all of that.) Now I know he was just a broker/dealer who was wanting a commission even though I told him over and over again how I promised my husband on his death bed I would be careful with our money. My husband who died of cancer was way more worried about me than about his disease. I told this man that. And he still completely stabbed me in the back and apparently twisted the knife a few times too. After my husband’s passing I was planning on going to my bank where there is a free financial advisor. If only I had stuck with that plan. This man’s wife knew someone in my family and told my family member her husband would be so happy to help me if I need it that he is a financial advisor. I think laws and rules should be changed and people like this man should not have the title of “financial advisor.” I can think of a few things I would like to call him.
He told me Behringer Harvard REIT 1 was the closest investment to a c.d. He told me the principle and the dividends would NOT change. Because it was not publicly traded I kept asking him how I would sell it if I ever needed this money. He said B.H. would buy my shares back if I ever needed the money. Because he was a friend of someone from my family, because I thought he was a “financial advisor,” and because his wife came to notarize my husband’s will at the hospital and she seemed so nice, I trusted him. He and his wife are supposedly such a nice, Christian couple, and on and on. No, they are FAKE. He put $125,000.00 into B.H. REIT 1. He lied through his teeth and told me it is “so safe.” No, I didn’t read the prospectus. He hurridly went over it. Oh, this just says some risk involved, of course there is always some risk and stuff like that he said. I have received paper work where he totally and falsely increased my net worth and my income.
125,000 dollars, it may not be a lot to some. But for some people it is the kind of money people commit suicide over. I am not saying that would happen to me, but I am saying I could see it happening to someone. I admit I was stupid and too trusting, but how do these brokers do this to people? How are they allowed to say they are “financial advisors.” They are not. They are just trying to sell something. I did not know about the commission. I tried to pay him with a personal check after I met with him the first time. He said, oh, you don’t pay have to pay me. I assumed he must be getting a few hundred dollars from these companies. Had I known that I was going to buy him a new car with the commission he was going to make off of me, that obviously would have been a huge red flag. Knowing what he had done to me he had the audacity to show up at my dad’s funeral. Once again, acting like a nice, caring friend. Screw him. I think him and people like him are scum.
Stay far, far away from these types of “investments.” Trust no one when it comes to money.
Hi Amy,
I’m a reporter with the Wall Street Journal looking for investors in non-traded REITs who felt they were mislead about the product. Please contact me at angela.pruitt@dowjones.com.
Lee wrote:
“Lee Zehrer October 15, 2011 at 7:07 am
I’d like to hear from anyone, ANYONE who has ever got their investment back from one of these REITS? Even if it’s only half or more please let us know?”
Lee,
I have never lost a dime in the 6 REIT’s that I have invested in the past (W.P.Carey, Cole, Grubb). This is real estate and if you buy at the top, you’re probably going to lose. I didn’t touch anything after 2004 until recently. During the 90′s I made very good income from Non-traded REIT’s.
It’s only now that this site will get any attention because of the market collapse. From 1992 through 2004 everyone loved REIT’s and this type of website would have been a joke. Anyone who bought REIT’s, RE Limmited Partnerships or even a single family home in from 2004 through 2008 was a complete fool. Anyone who bought a house during this time probably lost more than the average REIT. It’s just common sense, IMHO.