Nontraded REIT Fundraising Climbs to $6.3B as NAV REIT Returns Hold Positive

Nontraded net asset value real estate investment trust performance remained positive in the first quarter of 2026, with both Stanger NAV REIT indices posting their fifth consecutive quarter of positive total returns and outperforming major publicly traded REIT benchmarks over the trailing 12 months, according to investment banking firm Robert A. Stanger & Company.

The Stanger Public NAV REIT Total Return Index (20 NAV REITs; 88 separate share classes) rose 1.6% in Q1 and 6.2% over the trailing 12 months, while the Stanger Composite NAV REIT Total Return Index (36 NAV REITs; 168 separate share classes), which incorporates both publicly registered and private placement nontraded NAV REITs, gained 1.7% in Q1 and 6.9% over the same period. By comparison, the three major publicly traded REIT indices (Cohen & Steers Realty Majors Portfolio, MSCI US REIT Gross Total Return Index, and the FTSE Nareit Equity REIT Total Return Index) tracked by Stanger averaged a 5.8% return over the past year.

Improving performance has coincided with stronger fundraising activity. Aggregate NAV for publicly registered nontraded NAV REITs reached $83 billion as of March 31, 2026, up 3.7% year-over-year and 1.2% quarter-over-quarter.

Trailing 12-month fundraising for publicly registered nontraded REITs increased to $6.3 billion through March 2026, a 7.9% increase from the $5.8 billion raised through March 2025. Blackstone remained the largest fundraiser, accounting for $2.8 billion, or approximately 44% of the total.

“The momentum is real – NAV REITs have now posted five consecutive quarters of positive total returns, with both Stanger indices outperforming public REIT benchmarks over the past year,” said Kevin T. Gannon, chairman and chief executive officer of Stanger.

“Fundraising is improving, NAV growth remains positive, and investors are increasingly focused on real estate as capital rotates toward hard asset strategies. We expect that trend to remain an important driver of alternative investment flows throughout 2026,” added Gannon.

The first quarter of 2026 also brought several notable liquidity and lifecycle events for the 13 legacy lifecycle non-traded REITs (25 separate share classes). National Healthcare Properties took steps to prepare for publicly listing on a national securities exchange – it completed its listing on Nasdaq under the symbol “NHP” last month – while CNL Healthcare Properties completed its merger with Sonida Senior Living. Additionally, Moody National REIT II completed its previously announced liquidation.

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

As reported by AltsWire in February, the board of directors of PGIM Private Real Estate Fund Inc. approved the company’s conversion to an interval fund structure to provide shareholders with structured liquidity and adopted a new name at the end of April: PGIM Real Estate Fund Inc.

Blackstone Real Estate Income Trust, or BREIT, closed an $845.2 million loan in Q1 2026 to refinance a 12-property, 4,922-unit multifamily portfolio in the Sunbelt region. The two-year, floating-rate loan will refinance $924.5 million of existing debt on the portfolio.

Also in the first quarter, the board of Strategic Storage Trust VI Inc., sponsored by an affiliate of SmartStop Self Storage REIT Inc. (NYSE: SMA), reaffirmed an estimated NAV of $10 per share in March, based on the portfolio as of Sept. 30, 2025, and applicable to Class P, A, T, W, Y, and Z common stock.

The Composite NAV REIT Total Return Index, Public NAV REIT Total Return Index, and Lifecycle REIT Total Return Index 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.

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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