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Post by yogibearbull on Dec 4, 2022 16:42:24 GMT
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Post by bizman on Dec 4, 2022 23:34:34 GMT
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Post by yogibearbull on Dec 4, 2022 23:46:17 GMT
bizman, one motivation was the media and investor misunderstanding on Blackstone BReit. It is a Nontraded-REIT with optional quarterly redemptions. In 2022/Q4, redemption requests exceed the announced repurchase amount (BReit optional policy is 2% monthly or 5% quarterly redemptions), so the holders will just have to wait for the next redemption window in 2023/Q1. OK, so the redemption requests are rising, but the sky isn't falling.
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Post by bizman on Dec 5, 2022 0:01:06 GMT
I'm not making a judgment on SREIT or BREIT, which I understand have done extremely well.
This is just one of those areas where there are a lot of charlatans pushing stuff on unsuspecting investors who think that non-traded equals no volatility, which is not correct, though it may feel that way to people.
I solve this problem for myself by giving this whole area a wide berth, as Charlie Munger recommends people to do for certain things.
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Post by johnsmith on Dec 5, 2022 20:16:04 GMT
What I read was that the Non-traded REITs are valued more than their public reit counterparts, so people are redeeming the non-traded and exchanging them for public.
so the question would be why would the Non-Traded be valued higher than public?
most likely because fees are related to the current AUM, keep NAV higher and get more fees. Also gating the redemptions is great, keep fees around for longer.
Best to stick with Public REITs & something like VNQ or VNQI have performed brilliantly.
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