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.
