Private Placement REITs Extend Momentum as Capital Shifts Within Non-Listed Sector
Private placement real estate investment trusts continued their recent expansion, with combined aggregate net asset value surging to $30.5 billion in the fourth quarter of 2025 – a 17.4% quarter-over-quarter increase and a 66.4% year-over-year jump.
The vehicles now represent 25.3% of the $120.7 billion total aggregate NAV across publicly registered and private placement REITs, according to investment banking firm Robert A. Stanger & Company, up substantially from 16.5% at the end of 2024, reflecting accelerated market share gains.
Stanger has introduced a new index, the Stanger Private NAV REIT Total Return Index, a weighted quarterly benchmark of private placement NAV REIT total return. The Private Index rose 2.5% in Q4 2025 and gained 9.6% in 2025, outperforming Stanger’s Public NAV REIT Total Return Index (covering just publicly registered non-listed NAV REITs), which posted 2.3% and 5.8%, respectively.
“All new non-listed REIT offerings are now being launched as private placements, reflecting the realities of today’s regulatory environment,” said Kevin T. Gannon, chairman and chief executive officer of Robert A. Stanger & Company. “Performance has benefited from the absence of legacy asset drag, with newer portfolios constructed at current market pricing. This is evident in the Stanger Private NAV REIT Total Return Index, which posted a 9.6% full-year return, outperforming publicly registered NAV REIT benchmarks.”
Sculptor Diversified Real Estate Income Trust, a private non-traded real estate investment trust managed by Sculptor Real Estate, led the three-month and one-year rankings among private placement REITs with total returns as of Dec. 31, 2025, of 5.4% and 14.8%, respectively. Sculptor’s one-year performance displaced the previous quarter’s one-year leader, Ares Real Estate Income Trust.
Launched in 2022, the Sculptor REIT was designed to identify attractive opportunities that demonstrate strong resilience through economic cycles, according to the company. Previously reported by AltsWire, the REIT reported a 7.16% month-over-month increase in total NAV, rising from approximately $484.7 million on Nov. 30, 2025, to approximately $519.4 million as of Dec. 31.
While Stanger’s latest analysis focuses on private placement REIT performance, the final version will include business development company data as of the end of 2025 and will be released following Q1 2025 filings.
“As redemptions begin to build in BDCs, we expect private placement REITs to capture a disproportionate share of these flows,” added Gannon.
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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