About Publicly-Registered Non-Listed REITs
Non-Listed REITs, also referred to as Non-Traded REITs, are publicly-registered Real Estate Investment Trusts that are simply not traded on an exchange while the REIT raises funds from the public and constructs its portfolio. At a certain time, which historically has varied from a couple of years to 5 or more years, the REIT IPOs on an exchange, merges with an existing publicly-traded REIT or is sold outright in a cash deal to a publicly-traded REIT, pension fund, sovereign wealth fund or other private entity.
Traditionally, most non-traded REITs are illiquid, meaning they are designed to be held for many years, typically 5 – 7 years after the offering closes to new investors. However, this time period may be less or more depending on fund. The illiquidity is created by design to not only provide investor’s with durable and predictable income, but also to capture the illiquidity premium – or the delta between the yield and capital appreciation of a non-traded program versus that of a publicly-traded REITs. Non-Listed REITs raise capital on a monthly basis and are able to dollar-cost-average into the real estate market over time, including in periods when the market is selling at a discount. Such pockets of buying opportunities can be accretive to overall investment performance. Since Non-Listed REITs are not available directly to the public, we offer investors the opportunity to purchase Non-Listed REITs and other Non-Listed programs commission-free with no loads through our Registered Investment Advisor. Contact us for details.