NEW YORK, Jan. 11, 2022 /PRNewswire/ -- Bluerock Capital Markets, LLC ("BCM" or "Company"), a distributor of institutional alternative investment products and the dedicated dealer manager for Bluerock ("Bluerock"), announced today a new annual record capital raise of over $2.1 billion in 20211. The Company's trailing 3-month sales annualize to approximately $3.3 billion.
BCM's record inflows represents a notable 117% year-over-year increase from 2020 driven by individual annual capital raise records for all three of its investment program verticals with sales of over $1.5 billion (including distribution reinvestment) in Bluerock's flagship interval fund, Bluerock Total Income+ Real Estate Fund, up 87%, sales for Bluerock Residential Growth REIT's Non-Traded Preferred Stock offering of $464 million, up 90%, and sales for Bluerock Value Exchange's 1031 exchange programs of $214 million, up 120%, all year-over-year as compared to 2020.
"Entering 2021, we expressed our bullish outlook for institutional real estate commensurate with the economic recovery driven by strong overall demand and record-breaking rent growth across many property sectors, as well as the historical precedence for outsized real estate returns during post-recessionary periods", said Jeffrey S. Schwaber, CEO of Bluerock Capital Markets. "We continue to have a bullish real estate outlook for 2022, particularly with strong convictions in the apartment, life-science, industrial and single family rental home sectors, as we continue to seek to deliver high risk-adjusted returns and tax efficient distributions for our investors", added Schwaber.
2021 Highlights of Bluerock's Investment Programs Include:
The Bluerock Total Income+ Real Estate Fund (the "Fund" or "Bluerock Total Income+") closed 2021 with record inflows of over $225 million in December and more than $3.8 billion in AUM making it the 3rd largest interval fund among all 72 active interval funds2. The Fund is invested in approximately $294 billion of private institutional real estate, public real estate securities and debt instruments. The Fund set a new annual record and an outsized total net return to shareholders of 21.9%* with a remarkably low 1.6% annualized standard deviation since inception (I-share: TIPWX; April 2014) as of December 31, 2021. The Fund had the highest capital inflows YTD though November (most recent data) among all active interval funds within the direct investment industry3.
Further, Bluerock Total Income+ has been a consistent leader in risk-adjusted performance generating the single highest Sharpe and Sortino Ratios (key measures of risk-adjusted returns) of all 6,000+ domestic '40 Act funds in the trailing 5-year and since inception time periods as of 12.31.21, per Morningstar4. The Fund's peer-leading performance spans multiple time periods with the Fund's A-share and I-shares both reporting the highest total net returns in the trailing 3-year and 5-year periods among all active real estate sector interval funds as of 12.31.214. The Fund has delivered positive total returns to its shareholders every year since inception (9+ years) and 33 of 36 quarters. Past performance is no guarantee of future results.
The Fund has paid 36 consecutive quarterly distributions at a 5.25% annualized rate5 with an 8.6% annualized net return* since inception (A-share, no load: TIPRX, Oct 2012) as of this release resulting in 335 basis points of annual appreciation above the annual distribution rate thereby providing shareholders with a combination of attractive income, tax efficiency3, growth, very low relative volatility and positive returns in every year since inception.
*Returns would have been lower if the calculation reflected the load.
Bluerock Residential Growth REIT (BRG) closed its offering of Series T Preferred Stock after raising over $706 million in total capital. BRG held a robust 49% market share of new investments into non-traded preferred stock within the alternative investment industry3 and recently paid its 68th consecutive monthly distribution at the stated dividend rate (6% for Series B and 6.15% for Series T) without any principal fluctuation to its shareholders. In addition, all 92 outstanding tranches of the BRG Warrants associated with the BRG Series B Preferred Stock were "in the money" as of December 31, 2021 providing additional upside appreciation in addition to the payment of dividends.
Bluerock Value Exchange successfully full-cycled three sponsored DST programs in 2021 resulting in $124 million in total investment returns on $84 million of equity resulting in an 11.2% internal rate of return to investors, inclusive of appreciation and distributions.
1 Includes distribution reinvestment.
3 Source: R.A. Stanger, Market Pulse as of November 2021; exclusively RIA/independent broker dealer intermediary distribution.
4 Source: Morningstar Direct based on daily data as of 12.31.2021, among of all U.S. open-end, closed-end, and exchange traded funds 7,878 funds in the trailing 5-year period, and 6,179 funds since inception) TIPRX generated the highest annualized Sharpe Ratio and annualized Sortino Ratio; compiled by Bluerock Fund Advisor, LLC. TIPRX, no load. Sharpe Ratio, and Sortino Ratio are only two forms of performance measure. The Sharpe Ratio and Sortino Ratio would have been lower if the calculation reflected the load. The funds considered in the analysis have significant differences, including various objectives, strategies, liquidity, and fees (see definitions below). Past performance does not guarantee future results.
5 The Fund's distribution policy is to make quarterly distributions to shareholders. The level of quarterly distributions (including any return of capital) is not fixed. However, this distribution policy is subject to change. The Fund's distribution amounts were calculated based on the ordinary income received from the underlying investments, including short-term capital gains realized from the disposition of such investments. Shareholders should not assume that the source of a distribution from the Fund is net profit. All or a portion of the distributions consist of a return of capital based on the character of the distributions received from the underlying holdings, primarily Real Estate Investment Trusts. The final determination of the source and tax characteristics of all distributions will be made after the end of the year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. There is no assurance that the Company will continue to declare distributions or that they will continue at these rates (distributions historically 64% tax deferred from 1.1.2013-12.31.2020).
TI+ Fund Class A and I Share Net Performance
Performance through 12.31.2021
TI+ Fund Class A
TI+ Class A with Max Sales Charge7
TI+ Fund Class I
Returns presented are total net return: expressed in percentage terms, the calculation of total return is determined by taking the change in price, reinvesting, if applicable, all income and capital gains distributions during the period, and dividing by the starting price. Returns greater than one year are annualized.
A fund's performance, especially for very short periods of time, should not be the sole factor in making your investment decisions.
6 Inception date of the TI+ Fund Class A share is October 22, 2012 and Class I share is April 1, 2014.
7 The maximum sales charge for the Class A shares is 5.75%. Investors may be eligible for a waiver or a reduction in the sales charge.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month end, please call toll-free 1-888-459-1059. Past performance is no guarantee of future results.
The total annual fund operating expense ratio, gross of any fee waivers or expense reimbursements, is 2.18% for Class A and 1.92% for Class I. The Fund's investment advisor has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until January 31, 2022 for Class A and I shares, to ensure that the net annual fund operating expenses will not exceed 1.95% for Class A and 1.70% for Class I, per annum of the Fund's average daily net assets attributable to Class A and Class I shares, respectively, subject to possible recoupment from the Fund in future years. Please review the Fund's Prospectus for more detail on the expense waiver. Fund performance and distributions are presented net of fees.
A basis point is a measurement with one basis point equal to 1/100th of 1%.
An open-end fund is a type of mutual fund that does not have restrictions on the amount of shares the fund can issue. The majority of mutual funds are open-end, providing investors with a useful and convenient investing vehicle. Shares are bought and sold on demand at their net asset value (NAV), which is based on the value of the fund's underlying securities and is calculated at the end of the trading day.
A closed-end fund is organized as a publicly traded investment company by the Securities and Exchange Commission (SEC). Like a mutual fund, a closed-end fund is a pooled investment fund with a manager overseeing the portfolio; it raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange. Unlike open-end funds, closed-end funds trade just like stocks. While open-end funds are priced only once at the end of the day, closed-end funds are traded and priced throughout the day.
An ETF, or exchange-traded fund, is a marketable security that tracks a stock index, a commodity, bonds, or a basket of assets. Although similar in many ways, ETFs differ from mutual funds because shares trade like common stock on an exchange. The price of an ETF's shares will change throughout the day as they are bought and sold.
Sharpe Ratio: Measurement of the risk-adjusted performance calculated by subtracting the annualized risk-free rate (3-month Treasury Bill) from the annualized rate of return for a portfolio and dividing the result by the annualized standard deviation of the portfolio returns.
Annual standard deviation is the daily percentage change in an investment. Standard deviation shows how much variation from the average exists with a larger number indicating the data points are more spread out over a larger range of values.
Maximum Drawdown: The maximum decline a security experiences prior to reaching its previous peak.
The Bluerock Total Income+ Real Estate Fund is a closed-end interval fund that invests the majority of its assets in institutional private equity real estate securities that are generally available only to institutional investors capable of meeting the multi-million dollar minimum investment criteria. Net assets under management for TI+ are approximately $3.8 billion as of December 31, 2021. As of Q4 2021, the value of the underlying real estate held by the securities in which the Fund is invested is approximately $294 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Principal, Prudential, Clarion Partners, Invesco and RREEF, among others. The minimum investment in the Fund is $2,500 ($1,000 for retirement plans) for Class A, C, and L shares.
Investing in the Bluerock Total Income+ Real Estate Fund involves risks, including the loss of principal. The Fund intends to make investments in multiple real estate securities that may subject the Fund to additional fees and expenses, including management and performance fees, which could negatively affect returns and could expose the Fund to additional risk, including lack of control, as further described in the prospectus.
Limited liquidity is provided to shareholders only through the Fund's quarterly repurchase offers for no less than 5% of the Fund's shares outstanding at net asset value. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund's net asset value.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Bluerock Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained online at bluerockfunds.com. The prospectus should be read carefully before investing.
The discussion of BRG securities herein relates solely to BRG's Series T Redeemable Preferred Stock, non-traded securities of BRG which have not been listed on any national exchange. The risks and rewards of investing in the Series T Preferred Stock are separate and distinct from an investment in BRG's common stock listed on the NYSE American. This is neither an offer to sell nor a solicitation of an offer to buy any securities. An offering is made only by the prospectus. The BRG Series T Preferred Stock investment program was closed as of November 19, 2021.
Bluerock is a leading institutional alternative asset manager with more than $11.8 billion of acquired and managed assets headquartered in Manhattan with regional offices across the U.S. Bluerock principals have a collective 100+ years of investing experience with more than $48 billion real estate and capital markets experience and have helped launch leading private and public company platforms.
About Bluerock Capital Markets
Bluerock Capital Markets, LLC (BCM) serves as the managing broker dealer for Bluerock and is a member of FINRA/SIPC. Formed in 2010, BCM distributes a broad range of institutional investment products with potential for growth, income, and tax benefits exclusively through broker dealers and investment professionals including the Bluerock Total Income+ Real Estate Fund, Bluerock Residential Growth REIT, Inc., and programs sponsored by Bluerock Value Exchange, LLC. BCM was a top five capital fundraiser over the prior 3-year period (2019-2021) among all active managing broker dealers in the Direct Investments Industry (Source: Robert A. Stanger Market Pulse).
A summary of Bluerock's three distinct investment programs include:
About Bluerock Total Income+ Real Estate Fund
The Bluerock Total Income+ Real Estate Fund offers individual investors access to a portfolio of institutional real estate securities managed by top-ranked fund managers. The Fund seeks to provide a comprehensive real estate holding designed to provide a combination of current income, capital preservation, long-term capital appreciation and enhanced portfolio diversification with low to moderate volatility and low correlation to the broader equity and fixed income markets. The Fund utilizes an exclusive partnership with Mercer Investment Management, Inc., the world's leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with over 3,300 clients worldwide, and over $15 trillion in assets under advisement.
About Bluerock Residential Growth REIT
Bluerock Residential Growth REIT, Inc. is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. BRG's objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and operations. BRG reports assets in excess of $2.4 billion and approximately 17,900 apartment units. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
About Bluerock Value Exchange
Bluerock Value Exchange is a national sponsor of syndicated 1031-exchange offerings with a focus on Premier Exchange Properties™ that seek to deliver stable cash flows and potential for value creation. Bluerock has structured 1031 exchanges of more than $2 billion in total property value and 11 million square feet of property.
Bluerock Residential Growth REIT's Series T Preferred Stock and Bluerock Value Exchange's programs are offered by Bluerock Capital Markets, LLC.
The Bluerock Total Income+ Real Estate Fund is distributed by ALPS Distributors Inc. Bluerock Capital Markets, LLC is not affiliated with ALPS Distributors, Inc. or Mercer Investment Management, Inc. ALPS Distributors, Inc. is not affiliated with Bluerock Residential Growth REIT, Bluerock Value Exchange, and Bluerock Capital Markets.
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