Bluerock Capital Markets Reports Record Equity Inflows in March and $149 Million of New Equity Capital Investment Across its Institutional Product Suite
New York, NY (April 12, 2021) – Bluerock Capital Markets, LLC (“BCM” or “Company”), a distributor of institutional alternative investment products and the dedicated dealer manager for Bluerock Real Estate (“Bluerock”), reported significant new equity capital inflows of approximately $149 million in March, including robust sales across all three of its core business units.1 The Company reported total capital inflows for the first quarter of more than $333 million1.
The monthly capital raise increased sequentially throughout the first quarter and was led by the Company’s flagship institutional real estate fund, Bluerock Total Income+ Real Estate Fund (“Fund”). The Company reported an approximate 116% increase in new equity inflows in March over the Q3 and Q4 2020 pandemic-levels.
The Company also reported significant increases and a record capital raise in the Bluerock Residential Growth REIT’s (BRG) Non-Traded Series T Preferred Stock program and over $25 million of equity capital in March in Bluerock Value Exchange’s (BVEX) 1031/DST exchange programs.
“It is clear that advisors and investors are focused on income and stability during the current economic environment,” said Jeffrey S. Schwaber, CEO of Bluerock Capital Markets. “Our flagship Bluerock Total Income+ Real Estate Fund recently surpassed its 8th year of operations generating 8+ consecutive years of positive returns with no down years, 30 of 33 calendar quarters with a positive return and is doing so with less than 1/10th the volatility of the equity markets.2 Not even the global pandemic could pierce the armor of our institutional real estate fund which boasted positive returns in 2020,” added Schwaber.
“The Bluerock Total Income+ Real Estate Fund produced a 7.26% annualized net return since inception, meaning the Fund has consistently covered its 5.25% annual distribution rate plus an additional 2%+ per year in appreciation, which provided both an inflation hedge and attractive total returns to our shareholders,*” added Adam Lotterman, Co-CIO and Sr. Portfolio Manager of the Bluerock Total Income+ Real Estate Fund. “We worked intensively to position the Fund to take advantage of what we believe are accelerating trends with a large overweight to top-tier life science investments and last-mile industrial. This allowed us to prosper during the pandemic and deliver a 5.5% total net return in just the past six months.3 We believe we are well-positioned to continue to deliver attractive risk-adjusted returns,” added Lotterman.
1 Inclusive of distribution reinvestment.
2 Source: Morningstar Direct. 10.22.2012-3.31.2021, Standard deviations: TIPRX, no load: 1.72%, S&P 500, 20.50%
3 TIPRX, no load total return for the six months ending 3.31.2021
TI+ Fund Class A and I Share Net Performance
|TI+ Fund Class A|
|TI+ Fund Class A with Max Sales Charge8|
|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.
5 Inception date of the TI+ Fund Class A share is October 22, 2012 and Class I share is April 1, 2014.
6 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. A fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. Fund performance and distributions are presented net of fees.
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. As of Q4 2020, the value of the underlying real estate held by the securities in which the Fund is invested is approximately $228 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Principal, PGIM, 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.
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 $15.0 trillion in assets under advisement.
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.
* 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 and this distribution policy is subject to change. 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 each 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. There can be no assurance that any investment will be effective in achieving the Fund’s investment objectives, delivering positive returns or avoiding losses.
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 Bluerock Total Income+ Real Estate Fund is distributed by ALPS, Inc. The prospectus should be read carefully before investing. Bluerock Fund Advisor, LLC is not affiliated with ALPS, Inc.
Bluerock is a leading institutional alternative asset manager with approximately $8.8 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 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 ranks #4 for capital fundraising in 2020 among all active managing broker-dealers in the Direct Investments Industry1.
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 18,000 apartment units. BRG’s common stock is included in the Russell 2000 and Russell 3000 Indexes. 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 on approximately $1.9 billion in total property value and 10 million square feet of property. With capacity across nearly all real estate sectors and the ability to customize transactions for individual investors, BVEX is available to create programs to accommodate a wide range of tax requirements.
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.