Why does share price differ from NAV? Understanding market price vs. fundamental value

As a listed closed-end fund, Bluerock Private Real Estate Fund (BPRE)’s shares trade on the NYSE like a stock, with price being determined by supply and demand for shares. Price is a distinct concept from net asset value (“NAV”), the fair market value of our private real estate portfolio.

Share price can diverge from fundamental value

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BPRE’s share price is determined by supply and demand for shares at any given moment

Share price incorporates factors beyond the fundamental value of underlying assets

Shares may trade at a price that is above or below NAV, the fair value of the Fund's assets

BPRE's NAV is independent, institutional and accurate, using the same valuations as many leading institutional investors

What non-fundamental factors may impact post-listing share price?

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Supply & demand imbalance

as natural shareholder turnover creates temporary pressure

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Liquidity preferences

with some investors prioritizing immediate liquidity over fundamental value

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Market sentiment

as some investors react to macro news and headlines

While listed closed-end funds often price at a discount to NAV upon listing, the data tells a consistent story—large funds like BPRE generally clear the discount over time.*

* Source: CEF connect, as of 1.20.2026, all real estate sector listed CEFs; top 5 average based on market capitalization; weighted average; largest 5 closed-end funds by market capitalization that also have an annual distribution rate above 5%; weighted average.