Perpetual life REITs posted 0.76% returns (institutional shares) in April 2018 and 7.63% returns (institutional shares) for April 2018 TTM. Perpetual life REITs continue their steady return performance, while listed REITs have faced negative returns over the last year.
Non-listed REITS raised only $919 million in 1Q18, which is below their low fundraising pace of 2017. Perpetual life REITs represented 75% of the capital raise, while Blackstone Real Estate Income Trust had 66% market share in 1Q18.
Perpetual life REITs posted steady returns of 2.05% in 1Q18 and 7.94% for 1Q18 TTM. Returns for 1Q18 TTM included 5.15% in distributions and 1.79% in appreciation. Perpetual life REITs continue to outperform listed REITs in 3-year average returns with significantly lower volatility.
Perpetual life REITs posted 0.56% returns (institutional shares) in February 2018 and 1.48% for February 2018 YTD (2 months), which puts perpetual life REITs on pace to surpass 8.00% returns in 2018 and exceed their long-term average return.
Non-listed REITs raised only $3.9 million equity in 2017, which is the lowest fundraising total in 14 years. Perpetual life REITs raised $2.0 billion of the total, while Blackstone Real Estate Income Trust alone raised $1.4 billion (36% of the total market).
Non-listed REITs reported higher 6.6% cap rates in 2017, which ended eight years of cap rate compression. Rising market interest rates were the primary factor for the cap rate increase. In 2017, cap rate spreads increased slightly from 2.6% to 2.7%.
Lifecycle BDCs raised only $215 million in 4Q17 and $840 million in 2017. Redemptions were a high $147 million in 4Q17 and $615 million in 2017. With FS Investments shifting from BDCs to closed-end funds, lifecycle BDCs will raise even less capital in 2018.