Investment
Trends in Infrastructure Investing TodayNon-Traded REITs
Diversifying portfolios with private real estate
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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
Lower volatility
NTRs are not publicly traded, so their share prices are not directly affected by stock market volatility
Diversification1
Invests in various property types (via equity and debt) and locations
1Diversification does not ensure a profit or protect against loss.