NAV REITs Signal Recovery With Strong Q4 2025 Totals, Says Stanger

The non-listed real estate investment trust sector showed clear signs of stabilization and renewed strength in the fourth quarter of 2025 as aggregate net asset value edged higher to $90.2 billion. While the full sector remains down 2.7% year over year (largely due to declines in lifecycle REITs), NAV REITs delivered positive NAV growth of 2.1% quarter over quarter and 2.3% year over year, marking a notable shift after a prolonged period of NAV contraction.

These findings are from the latest analyses provided by Robert A. Stanger & Company Inc., an investment banking firm and leader in alternative investment industry research.

Covering publicly registered NAV REITs, the Stanger Public NAV REIT Total Return Index rose 2.3% in Q4 2025 and gained 5.8% in full-year 2025, outperforming major public REIT indices that averaged a 1.7% loss in Q4 2025 and a 2.7% gain for the year. Over the past five years, the Stanger Public Index has delivered a cumulative total return of 40.1%, surpassing diversified listed real estate benchmarks by 5.6% with markedly lower volatility.

Recognizing the growing prominence of private placement structures, Stanger recently introduced the Stanger Composite NAV REIT Total Return Index, which incorporates both publicly registered and private placement NAV REITs. It currently includes 33 NAV REITs (155 separate share classes).

The composite index posted a 6.5% trailing 12-month return, highlighting the meaningful contribution of private placement vehicles to overall sector strength.

Fundraising for public non-listed REITs held relatively steady year over year, with $5.7 billion raised in 2025.  Broader real estate inflows showed even greater momentum:

• Private placement REITs raised $9.5 billion, up 80.9% from 2024; and
• Delaware statutory trust programs raised $8.2 billion, up 45.4% year over year.

December 2025 alone saw $3.7 billion raised across DSTs and public and private non-listed REITs, a 152.6% increase from February’s collective low of $1.5 billion. This sharp acceleration into year-end suggests investor confidence is returning as total return expectations improve.

“The Q4 numbers confirm that NAV REITs are regaining their footing after a prolonged adjustment period,” said Kevin Gannon, chairman of Stanger. “Periods like this test structure, underwriting discipline, and liquidity management. The funds that held their line are now seeing signs for optimism, with NAV growth returning, redemptions easing, and capital re-engaging.

“Our new composite index reflects the full scope of that resilience, particularly as private placement vehicles scale. We now enter 2026 with stabilization, renewed confidence, and tangible momentum,” added Gannon.

Performance leaders across key time periods are summarized in the table below.

PGIM Private Real Estate Fund was the three-time leader of NAV REITs’ total return rankings – taking the three-month, one-year, and three-year ranking spots – according to Stanger.

Among lifecycle REITs, Lightstone Value Plus REIT II led the one-year total return ranking with a return of 13.9%. As they previously did in summer 2025, Strategic Storage Trust VI  and Lightstone Value Plus REIT V topped the three-year and five-year total return rankings, respectively.

Founded in 1978, Robert A. Stanger & Company is an investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts, and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.

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