The largest nonlisted closed REITs
Closed real estate investment trusts, ranked by 4Q invested assets Rank…
Closed real estate investment trusts, ranked by 4Q invested assets
| Rank | Company | 4Q ’11 invested assets ($M) | Original share price | Current share value* | Original dividend yield | Current dividend yield | 4Q ’11 FFO** |
|---|---|---|---|---|---|---|---|
| 1 | Inland American Real Estate Trust | $12,096.8 | $10 | $7.22 | 6.20% | 5.00% | Negative |
| 2 | Retail Properties of America | $8,391.6 | $10 | $6.95 | 6.40% | 2.60% | 66% |
| 3 | Wells REIT II | $6,119.9 | $10 | $7.47 | 6.00% | 5.00% | 80% |
| 4 | Behringer Harvard REIT I | $4,431.1 | $10 | $4.64 | 7.00% | 1.00% | 44% |
| 5 | Corporate Property Associates 16 Global | $3,708.3 | $10 | $9.10 | 6.62% | 6.62% | 113% |
| 6 | KBS REIT | $3,644.0 | $10 | $5.16 | 7.00% | 0.00% | Negative |
| 7 | Cole Credit Property Trust II | $3,368.7 | $10 | $9.35 | 7.00% | 6.25% | 105% |
| 8 | CNL Lifestyle Properties | $3,087.8 | $10 | $10.00 | 6.25% | 6.25% | 289% |
| 9 | Dividend Capital Total Realty Trust | $3,029.3 | $10 | $8.45 | 6.00% | 5.00% | Negative |
| 10 | KBS REIT II | $3,008.9 | $10 | $10.11 | 6.50% | 6.50% | 93% |
| 11 | Hines REIT | $2,612.6 | $10 | $7.78 | 6.40% | 5.00% | 78% |
| 12 | Corporate Property Associates 15 | $2,609.3 | $10 | $10.40 | 7.29% | 7.29% | 107% |
| 13 | Healthcare Trust of America | $2,425.4 | $10 | $10.00 | 7.25% | 7.25% | 144% |
| 14 | American Realty Capital Trust | $2,110.5 | $10 | $10.00 | 7.00% | 7.00% | 126% |
| 15 | Apple REIT Nine | $1,732.1 | $11 | Not priced | 8.00% | 8.00% | 151% |
| 16 | Behringer Harvard Multifamily REIT I | $1,029.0 | $10 | $10.00 | 7.00% | 3.50% | 272% |
| 17 | Apple REIT Eight | $1,005.6 | $11 | Not priced | 7.00% | 5.00% | 149% |
| 18 | Apple REIT Seven | $965.0 | $11 | Not priced | 7.00% | 7.00% | 144% |
| 19 | Apple REIT Six | $935.9 | $11 | Not priced | 7.00% | 7.20% | 118% |
| 20 | Lightstone Value Plus REIT | $531.0 | $10 | $10.65 | 7.00% | 7.00% | Negative |
| *The value disclosed by the nonlisted REIT as of April 8. **Funds from operations, is based on Nareit-defined funds from operations. | |||||||
Commentary by Michael Stubben, President of MTS Research Advisors: The above table highlights the original and current dividends and valuations for the twenty largest closed nonlisted REITs. While certain recently closed nonlisted REITs, such as American Realty Capital Trust and KBS REIT II, have shown strong operating performance throughout their history, the majority of closed nonlisted REITs have sustained significant losses in their real estate operations. The commercial real estate capital markets pricing bubble (2006-07) and the commercial real estate property market recessionary phase (2007-11) have led to a widespread and significant decrease in dividends and valuations among closed nonlisted REITs. As a result, the market values of their assets have declined, and these closed nonlisted REITs have experienced declines in occupancies and rents. While some REITs will see improvements in 2012, many REITs will continue to face dividend and valuation challenges due to operational issues and debt maturities.
Source: MTS Research Advisors
View the largest nonlisted effective REITs.
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