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Public Non-Traded REITS: Issues and Answers for Investors and Advisors

Non-traded real estate investment trusts (REITs) are on track to raise $8 billion in 2010, a 31% increase over 2009, according to research firm Robert A. Stanger & Co., a prominent real estate investment banking firm specializing in non-listed REITs.

The industry continues to expand in the face of a tough economic climate. Fourteen new non-traded REITs became effective through October of this year alone, representing $19.85 billion in equity, and 23 more offerings totaling $36 billion of equity are in various stages of registration with the Securities and Exchange Commission.

In this hour-long webinar aimed at broker-dealers, registered representatives and investors, panelists from two public, non-traded REITs will provide a primer on this fast-growing investment vehicle and discuss some of the hot-button issues facing this industry today.

More specifically, panelists will address fees and the front-end load, dividends and dividend coverage ratios, exit strategies and management internalization. The panel also will examine the reasons independent financial advisors and their clients have embraced these investments over other real estate options. Among the key questions:

  • What are the key differences between a publicly traded REIT and a non-traded REIT in terms of structure, reporting and disclosure requirements?
  • How large is the REIT universe, and what is fueling the growth of the non-traded REIT industry in today’s marketplace?
  • What is the fee structure of a non-traded REIT, what are the estimated costs, and how does it compare to the publicly traded REIT market?
  • What is the dividend payout ratio in the public, non-traded space and how does that compare to the publicly traded REIT market?
  • What options are available to the sponsor of a public, non-traded REIT at the end of the REIT’s life cycle to create profit and liquidity for its investors?

This overview will be followed by a 15-minute question-and-answer session.


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