In addition to our typical due diligence review explained further below, we provide the following services in connection with non-traded, public REITs (i) a quarterly “Non-Traded REIT Report” and (ii) ongoing due diligence. The Non-Traded REIT Report is intended to provide summary financial and other information concerning non-traded REITs. To request a copy of the quarterly Non-Traded REIT Report, please email us.

Furthermore, we have been engaged to perform ongoing due diligence of certain non-traded, public REITs. The ongoing review process includes quarterly summary reports and annual due diligence reports for each REIT. In addition, we provide our clients with online access to a summary of each REIT’s real estate portfolio, as well as certain additional information contained in the REIT’s filings with the SEC. For more information on this service, please email us.

We perform reviews in connection with initial public offerings and follow-on offerings of public, non-traded REITs, as well as interim update reviews. The public, non-traded REITs we have reviewed include REITs with investment strategies focusing on the following property classes:

• Office;
• Industrial;
• Retail;
• Medical office;
• Multi-family;
• Timber and/or timberland; and
• Lifestyle.

We have reviewed programs with maximum capital raises ranging from $100 million to $3.0 billion for individual offerings, and programs that have raised in excess of $7.0 billion in aggregate offering proceeds.  In connection with our review of a public, non-traded REIT, we typically:

• Visit the offices of the sponsor/advisor of the REIT to meet with key executives;
• Review the REIT’s current portfolio;
• Review the REIT’s regulatory status including public filings with the SEC and the exhibits thereto;
• Analyze the metrics utilized by the REIT in determining the level of distributions declared, such as funds from operations, adjusted funds from operations, cash available for distribution and cash from operating activities;
• Analyze underwriting terms to assess reasonableness of assumptions driving the REIT’s financial model;
• Review of corporate and operational documents for the REIT and generally for the entities serving as the REIT’s advisor, sponsor and dealer manager; and
• Analyze conditions in the relevant real estate markets.

Using the data gathered in the review process, we are able to provide detailed analysis of the REIT, including:

• Our evaluation of the disclosure in the offering document, based on our review of the items listed above and additional documentation provided by the REIT;
• Identification of program strengths and weaknesses as compared to other similar REITs; and
• Highlighting any unusual or particularly favorable or unfavorable terms of the REIT.

 

 

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