Non-Traded REIT Redemptions Still Outpacing Equity Raise Through Q2 2025

Public non-traded, net asset value real estate investment trusts have reported second quarter investor redemption results that revealed an overall decrease in redemptions from the prior quarter, driven largely by Blackstone Real Estate Income Trust, which reported redemptions totaling 2.7% of aggregate NAV as compared to 3.9% in the first quarter of 2025.

Collectively, public non-traded NAV REIT redemptions totaled 2.5% of aggregate NAV as compared to 3.4% the prior quarter, according to the latest analysis from investment banking firm Robert A. Stanger & Company Inc.

Despite this decrease, year-to-date investor redemptions of $4.9 billion are still outpacing public non-traded NAV REIT fundraising of $2.9 billion through Q2 2025.

“Cantor Fitzgerald, RREEF, StratCap, and Starwood reported investor redemption requests that exceeded capacity limits, but redemption levels overall remain well within the expected 5% quarterly cap imposed by most programs,” said Kevin T. Gannon, chairman of Robert A. Stanger & Co.

He added, “since reducing their capacity limits, we estimate that Starwood’s unmet investor redemptions have grown to nearly $1 billion.”

Public non-traded business development company investor redemptions, which have remained at approximately 1.5% of aggregate NAV for the prior seven quarters, reported an increase to 2.4% of aggregate NAV for the second quarter of 2025.

While redemptions have increased in the quarter, year-to-date fundraising of $23.2 billion far exceeds the $3.8 billion of investor redemptions reported by current offerings of public non-traded BDCs. During the second quarter of 2025, the overall aggregate NAV of public non-traded BDCs currently offered in space soared past $114 billion as retail investors continue to shift their portfolio allocations to BDCs and other credit-oriented products with higher yields.

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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