Investing in Non-Traded REITs
5 Pages Posted: 11 May 2013
Date Written: May 10, 2013
Abstract
NTRs typically invest in sector specific real estate programs, targeting stable, fully occupied properties subject to long-term leases to strong credit tenants. They are thus able to generate immediate, durable, rent-driven cash flows from the inception of the investment as capital is deployed without a cash drag. Much like traditional private equity core real estate investing, they aggregate property through acquisitions and build diversified portfolios by tenant, geography, industry and lease duration. They return value from these aggregated portfolios via asset sales, public listings or mergers, usually over a five- to seven-year timeframe.
Keywords: REITs, Real Estate, Non-Traded REIT
JEL Classification: A1
Suggested Citation: Suggested Citation