In the first three months of 2025, the Stanger NAV REIT Total Return Index achieved a three-month return of 1.2%, slightly trailing the 1.6% average of public indices. However, year-to-date through April 25, public indices, of course, faced headwinds, averaging a -2.1% return due to market volatility surrounding the recent “Liberation Day” market event.
Over the past 12 months, the Stanger NAV REIT – or net asset value real estate investment trust – Index posted a 1.3% return, compared to a robust 10% average for public indices. This is according to the latest analysis by Robert A. Stanger & Company, Inc., an investment banking firm and leader in alternative investment industry research.
“The pace of capital formation has begun to pick up as recent vintages of private placement NAV REITs have begun to dominate the space after the influence of a higher interest rate environment has curtailed the performance of the publicly registered NAV REITs,” said Kevin T. Gannon, chairman and chief executive officer of Stanger.
Among NAV REITs:
- Cohen & Steers Income Opportunities REIT led Q1 with a 3.6% three-month total return.
- PGIM Private Real Estate Fund Inc. once again topped the one-year total return rankings.
- FS Credit Real Estate Income Trust maintained its top spot in the three-year rankings for the third consecutive quarter. Its new chief financial officer started in April.
- Blackstone Real Estate Income Trust reclaimed the five-year total return lead with an annualized 11%, surpassing Clarion Partners Real Estate Income Fund Inc., which briefly held the top position in Q4 2024.
“Since the beginning of 2022, real estate focused alternatives have redeemed $52 billion of investors capital, while the fundraising velocity of [business development companies] has increased by $67 billion. NAV REITs have satisfied this redemption queue through their liquidity sleeve, asset sales, and strategic investments – proving the efficacy of the product,” added Gannon.
The Stanger Lifecycle REIT Total Return Index experienced a challenging start to 2025, declining 7.9% in Q1 and 6.7% over the past 12 months.
For Lifecycle REITs, Strategic Storage Trust VI sustained its leadership in the one-year total return rankings for the third straight quarter, delivering a 27.3% return. Procaccianti Hotel REIT surged to the top of the three-year rankings, up from second place in Q4 2024. Lightstone Value Plus REIT V finished atop the five-year total return rankings, regaining its top spot after briefly finishing second in Q4 2024.
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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