Non-Traded REIT Market Stabilizes as NAV REIT DSTs Accelerate Capital Flows
Aggregate net asset value for non-traded REITs edged up to $90 billion as of the end of September 2025, virtually flat from the second quarter’s $89.9 billion. Year-over-year, the sector is down 4.7%, but the sequential plateau suggests the first hints of normalization after more than two years of NAV contraction.
Fundraising over the past 12 months totaled $5.9 billion, a modest 1.8% increase over the prior year, bolstered in part by the expanded use of complementary Delaware statutory trust programs and resulting 721 UPREIT transactions by NAV REITs. This is all according to investment banking firm Robert A. Stanger & Company Inc.
Performance tells a more nuanced story. The Stanger NAV REIT Total Return Index rose 1.2% in Q3 and gained 3.3% over the past year, outperforming public REIT indices, which averaged a 2.5% loss over the same period. Over a five-year horizon, the NAV REIT Index has delivered a 42.2% cumulative total return, trailing the diversified listed real estate benchmarks – but with markedly lower volatility.
“The Q3 data confirms what we’ve been anticipating for several quarters,” said Kevin T. Gannon, chairman and chief executive officer of Stanger. “While capital inflows remain subdued compared to 2021-2022 peaks, underlying portfolio performance is stabilizing and redemption pressures continue to ease, pointing to a sector that is recalibrating rather than retreating.”
“Concurrently, the growing momentum of NAV REITs DST programs – now available through 10 sponsors – is reshaping the fundraising landscape,” added Gannon.
Performance leaders across key time periods are summarized in the table below.
As reported by AltsWire last week, NAV REIT Blackstone Real Estate Income Trust announced preliminary estimated financial results, projecting an approximate 3% increase in its same property net operating income for the nine months ended Sept. 30, 2025, compared to the same period last year. As noted above, Stanger lists BREIT as having a 9.5% five-year total return.
Among lifecycle REITS, AltsWire recently reported that Strategic Storage Trust VI – which Stanger highlighted has a 13% three-year total return – announced the launch of a $75 million Series E preferred stock offering for accredited investors. The offering is expandable to $100 million.
Robert A. Stanger & Co., Inc., founded in 1978, 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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