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|
|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.
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