August 2022 Alternative Performance
August performance numbers are now available. The private REIT space has continued to perform well. The overall building shortages and certainly the affordable housing shortages are huge tailwinds for the space. Even with recession fears and high inflation, people still have to live somewhere. BCRED also had a good month and announced a special dividend and then raised the annual dividend to 9.1%. This happened because the underlying loans held by BRED are based on LIBOR + 5.75(or whatever interest rate for each loan). As rates have gone from basically zero in January to over 4%, this now gets passed along to your portfolio. Check out the performance for August.
| Performance | August | Year to Date | Dividend Rate |
| Blackstone's REIT1 | 1.0% | 8.8% | 4.5% |
| Nuveen Global Cities REIT2 | .08% | 9.06% | 5.46% |
| Blackstone Private Credit3 | 1.4% | 2.6% | 9.1% |
For reference, as of September 22nd the S&P is -21.2%, the NASDQ is -29.3%, and the AGG(Bond Index) is -13.35% year to date. The S&P and NASDQ have both crossed into bear territory, and in the case of the NASDQ, WAY into the red. And even the AGG wasn't spared, adding losses over the last month. That's where these alts have help balance out the rest of my clients portfolios. We can talk further if this is a strategy that you think could help support your overall portfolio construction.
- https://www.breit.com/performance/
- https://www.nuveen.com/gcreit/performance
- https://www.bcred.com/performance/
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.