Very Interesting facts and figures on REIT’s from Blue Vault Partners.
BLUE VAULT PARTNERS, LLC ANNOUNCES THE RELEASE OF ITS
2010 NONTRADED REIT ANNUAL SUPPLEMENT
ATLANTA, Georgia (March 22, 2010) – Blue Vault Partners, LLC has announced the release of its annual supplement highlighting significant events that took place within the publicly registered, nontraded real estate investment trust (REIT) industry in 2009. This annual supplement is provided to all subscribers of the Blue Vault Partners Nontraded REIT Industry Review but is also being made available to the public as an independent resource guide for the nontraded REIT industry.
This supplement contains information about the nontraded REIT industry dating back to 1990, highlights significant events that took place in 2009, and provides a forecast for market expectations in 2010. Some of the key findings noted in this publication are:
? Since its inception in 1990, cumulative dollars raised from investors in these offerings totaled approximately $64 billion which includes new capital raised in 2009, estimated to be $6.0 billion.
? Between 2000 and 2010, the number of real estate sponsors offering nontraded REIT products grew from 6 to 29.
? Between 2000 and 2010, the number of individual nontraded REIT product offerings grew from 13 to 70.
? Assets under management for the industry are estimated to be $69.6 billion and represent 20% of the total market capitalization for all publicly registered REITs. This figure includes assets in current product offerings as well as those products that are closed to new investments.
? The average distribution yield for nontraded REITs was 6.53% as of December 31, 2009 compared to an average dividend yield for publicly traded REITs of 4.53%.
The Blue Vault Partners Nontraded REIT Industry Review is one of the few tools available to financial advisors that offers them an independent perspective on the nontraded REIT industry.
Two of the earliest subscribers to the report were Raymond J. Lucia, Sr., CFP, President and Founder of the Raymond J. Lucia Companies, Inc. and Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
Mr. Lucia noted, “As nontraded REITS grow in popularity, advisors must be apprised of all of the different programs available, their respective attributes and what sets the ones they sell apart from other nontraded REITs in the industry. The Blue Vault Nontraded REIT Industry Review gives me a concise breakdown of what is happening in the marketplace and better prepares our firm as we advise our clients on offerings in the non-traded REIT space.”
Mr. De Jong added, “Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.”
The Blue Vault Partners Nontraded REIT Industry Review was created with the intent to bring standardization to the nontraded REIT industry as it relates to tracking key metrics and monitoring the health and performance of the industry.
Shanon Ford, President, Pacific West Securities, Inc. commented, “As a broker/dealer, we like the subscription because of its graphical presentation and distilling of key points as it offers us a clear, summary picture of each REIT very quickly. The weekly newsletters are also extremely valuable as they keep us updated on the most recent events taking place in the industry.”
Primarily designed as an independent data source for financial advisors and broker/dealers, the report has also attracted the interest of nontraded REIT product sponsors who support the need for more transparency in the industry. CNL Securities Corp. has sold nontraded REITs for more than 20 years and is a leader and pioneer in the non-traded REIT industry.
“We are extremely pleased to see the introduction of the Blue Vault Partners Nontraded REIT Industry Review,” said Larry Goff, Executive Vice President of Business Development for CNL Securities Corp. “With the dynamic growth of the nontraded REIT industry, I believe that the timing is right for independent analytical information such as this report and expect it will become an essential resource for financial planners that are selling nontraded REITs today.” The Blue Vault Partners Nontraded REIT Industry Review is a subscription based publication. Based on three guiding principles, Integrity, Execution, and Responsiveness, Blue Vault Partners is focused on creating tools and providing consulting services that will help enhance the public awareness and transparency.