NNN Lease Market News
Chief Executive Terry Roussel said in a shareholder letter last month that the value of the stock had to be reduced based on falling values of the industrial parks the REIT purchased at the height of the market.
Financial advisers have touted the prospect of profiting from real estate without the volatility of publicly traded REITs. They also have pointed to steady dividend payments of up to 7%, according to some financial advisers, investors and marketing material.
Until recently, most of these REITs performed as advertised. Dividend payments continued, and quarterly statements showed that the values of the REIT shares mostly stayed steady from the prices at which they were originally sold, even as the downturn clobbered the public REIT market.
But unlike publicly traded stocks, whose values are set in the marketplace, valuation methods for nontraded REITs have varied widely.
Given that many nontraded REITs were established six or seven years ago, they will need to get properties in line with current market values when they sell the assets or take the companies public.
The average returns for all equity REITs, as well as all individual REIT sectors, were collected
from the official website of the National Association of Real Estate Investment Trusts (NAREIT),
the worldwide representative voice for REITs and publicly traded real estate companies with an
interest in U.S. real estate and capital markets.