According to a report published by investment banking firm Robert A. Stanger & Co., Inc., non-traded net asset value REITs have posted a cumulative five-year total return of 66% since 2018, more than three times the MSCI Public Market Index Return over the same period.
The Stanger NAV REIT Total Return Index took a slight dip in fourth quarter 2022, falling 1.26%.
This is the second quarterly decline in the index since its inception in December 2015 and the first such decline since the first quarter of 2020, at the start of the COVID-19 pandemic.
For 2022, net asset value REITs posted a 7.9% total return as measured by the Stanger Index. NAV REIT returns have outpaced those of their traded counterparts with a cumulative total return of 65.7% over the last 60 months. In comparison, the MSCI US REIT Index Gross Total Return (RMS G) rose 5.2% in the fourth quarter, but overall fell 24.5% in 2022. Over the last 60 months, the cumulative total return of this broader REIT market index, 19.9%, was less than one-third that of the Stanger NAV REIT Index.
“This performance highlights the benefits of a non-listed NAV REIT vehicle, that historically has provided a mostly steady real estate-based return without the extreme ongoing volatility of the traded market,” according to Kevin T. Gannon, chairman & chief executive officer of Stanger. “This strong performance is the driving force behind $33.2 billion of NAV REIT fundraising in 2022.”
Individual performance data shared in the report reveals that Cottonwood Communities – Class A (12.5% – annualized) and SmartStop Self Storage REIT – Class A (18.3% – annualized) to be the top performing NAV REIT and lifecycle REIT (traditional non-traded REIT), respectively, over the last three-year period. Over the five-year period, Ares Industrial Income Trust – Class I (14.4% – annualized) was the top performing NAV REIT and SmartStop Self Storage REIT – Class A (14.1% – annualized) was the top performing lifecycle REIT.
Robert A. Stanger & Co., Inc., founded in 1978, is an investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.
(This news/press release has not been altered by investment.org, apart from the headline, and has been obtained from a syndicated source:-