Nontraded REIT Fundraising Climbs More Than 20% Year-over-Year Through June
Publicly registered nontraded real estate investment trusts raised $3.4 billion during the first six months of 2026, up 20.6% from the $2.8 billion raised over the same period in 2025, according to the latest analysis from investment banking firm Robert A. Stanger & Co.
Performance strengthened alongside fundraising. The Stanger Public NAV REIT Total Return Index (19 NAV REITs; 86 separate share classes) rose 2.4% in Q2 2026, its strongest quarterly return in more than four years and its sixth consecutive quarterly gain. All 19 NAV REITs included in Stanger’s quarterly performance rankings posted positive Q2 returns, ranging from 0.4% to 6.7%. The Stanger Composite NAV REIT Total Return Index (35 NAV REITs; 166 separate share classes), which incorporates both publicly registered and private placement NAV REITs, also gained 2.4% during the quarter.
Listed REITs rallied more sharply over both the quarter and the trailing 12 months, with the three major public REIT benchmarks tracked by Stanger averaging returns of 11.5% and 18.9%, respectively. Over five years, however, the Stanger indices retain an advantage: the Public NAV REIT Index has delivered a cumulative total return of 33.4% and the Composite NAV REIT Index has returned 35%, compared with a 28.6% average for those same public benchmarks.
“The first-half data shows renewed strength across real estate capital formation,” said Kevin T. Gannon, chairman and chief executive officer of Stanger. “Fundraising is improving across both public non-listed REITs and DSTs as consistent NAV REIT returns help rebuild investor confidence in the sector. The sharp rally in listed REITs is also a healthy signal for broader real estate valuations.”
Performance leaders across key time periods are summarized in the table below.
Among NAV REITs, PGIM Real Estate Fund Inc. led the three-year period with a 9.3% total return. The company completed its 10th property acquisition with the purchase of The Arbor, a 127-unit housing community in the Riverdale neighborhood of the Bronx, N.Y., for $73.5 million, the firm said in May. The Bronx closing follows the fund’s conversion from a tender offer fund to an interval fund structure, completed in April.
For lifecycle REITs, Strategic Storage Trust VI, led the three-year period with a 13% total return. Announced following Q2 2026 and reported by AltsWire, SST VI agreed to acquire Strategic Storage Growth Trust III, Inc. in an all-stock merger, combining two nontraded self-storage REITs sponsored by the same SmartStop Self Storage REIT affiliate.
The Composite NAV REIT Total Return Index, Public NAV REIT Total Return Index, and Lifecycle REIT Total Return Index (11 lifecycle REITs; 23 separate share classes) measure the performance of nontraded REITs on a quarterly basis. Stanger began calculating these indices on Dec. 31, 2015, with a base level of 100. For a share class to be included in any index, a minimum of one full calendar quarter of performance is required.
Lifecycle REITs are generally added to the Lifecycle REIT Index in the quarter that their first NAV is announced. Lifecycle REITs are removed from the index upon listing, merger, or in the case of a liquidation by sale of properties, upon conversion to a liquidation basis of accounting. Lifecycle REITs may also be removed for other special circumstances.
Founded in 1978, Robert A. Stanger & Company is an investment banking firm providing advisory, valuation, and capital markets services to real estate investment trusts, partnerships, and related entities.
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