Non-Traded REITs
Diversifying portfolios with private real estate
What is an NTR?
Non-Traded REITs (NTRs) are private real estate investment vehicles not listed or traded on a public exchange
NTRs are designed to provide access to institutional-caliber private real estate–for example, offices, warehouses, shopping malls, and apartments–that generate income via rents. NTRs encourage long-term investing and provide limited liquidity via repurchase plans, where investors may have to sell their shares at a discount. They give investors exposure to real estate without the volatility of publicly traded REITs, but the lack of a secondary market for NTRs restricts liquidity.
Features
Non-Traded REITs have the following features and potential benefits:
Stable distributions
REITs generate recurring income and must distribute at least 90% of taxable income to shareholders
Inflation protection
Property rent increases typically have inflation escalators, mitigating the impact of rising prices