Non-Traded REITs Overview: Income-Producing Assets for Investors

Largest Non-Traded REITs: Unlocking Private Real Estate Opportunities

Non-traded REITs (Real Estate Investment Trusts) are privately offered real estate investment vehicles that are not listed on stock exchanges. Unlike publicly traded REITs, non-traded REITs provide investors with access to income-producing assets such as commercial, retail, industrial, and residential properties while maintaining lower volatility from daily market fluctuations.

Understanding the largest non-traded REITs is essential for investors seeking stable cash flow, long-term capital appreciation, and diversification in private real estate markets.

Why Consider Non-Traded REITs

1. Stable Income

Non-traded REITs typically focus on properties with long-term leases and strong tenants, generating predictable rental income for investors.

2. Lower Market Volatility

Since they are not traded daily, these REITs are less exposed to market swings, making them appealing to investors looking for stability in their portfolios.

3. Diversification

Investing in non-traded REITs allows access to diversified real estate portfolios across sectors such as office buildings, shopping centres, industrial warehouses, healthcare facilities, and apartments.

4. Professional Management

Non-traded REITs are managed by experienced teams who handle acquisitions, leasing, operations, and property management, ensuring effective asset performance.

Largest Non-Traded REITs Globally

While exact rankings can fluctuate, some of the largest non-traded REITs by assets under management include:

1. Blackstone Real Estate Income Trust (BREIT)

Focuses on diversified commercial real estate, including office, industrial, and multifamily properties. Offers strong income streams and long-term appreciation potential.

2. Starwood Real Estate Income Trust

Invests in U.S. and international commercial real estate, including retail, hotel, and industrial properties. Known for a disciplined acquisition strategy.

3. Griffin Capital Essential Asset REIT

Concentrates on essential-use properties such as retail centres and healthcare facilities that generate consistent income.

4. Nuveen Global Cities REIT

Targets urban commercial assets in high-demand city locations, providing both income and capital growth potential.

5. Inland Real Estate Group Non-Traded REITs

Operates multiple non-traded REITs with investments across residential, office, and retail sectors, focusing on stability and income distribution.

Advantages of Investing in Non-Traded REITs

• Regular Income: Predictable dividends from long-term leases

• Portfolio Diversification: Exposure to multiple real estate sectors and geographies

• Long-Term Capital Growth: Potential for appreciation as property values increase

• Access to Private Assets: Opportunity to invest in institutional-grade properties not available in public markets

Considerations for Investors

1. Liquidity: Non-traded REITs have limited liquidity; shares cannot be sold easily on public markets.

2. Fees: Some non-traded REITs may carry higher management fees compared to traded REITs.

3. Holding Period: These investments are best suited for medium to long-term investors due to illiquidity and redemption schedules.

4. Transparency: Investors should carefully review financial reports, asset portfolios, and management practices before investing.

African Market Insight

For African investors, non-traded REITs offer a model for income-producing real estate investments with:

• Steady rental cash flows

• Diversified property holdings

• Professional asset management

• Access to private, institutional-grade real estate

African Land uses global insights from non-traded REITs to advise clients on structuring African property portfolios, balancing liquidity, income, and long-term growth.

Conclusion

The largest non-traded REITs provide investors with private access to high-quality real estate assets, steady rental income, and long-term capital appreciation. While liquidity is limited compared to publicly traded REITs, their stability and professional management make them an attractive option for portfolio diversification and strategic property investment.

African Land guides investors in understanding and leveraging these models to build resilient, income-producing property portfolios across Africa.