Bluerock Total Income+ Real Estate Fund Posts a Strong 2020

By Thomas Price Wednesday, December 23, 2020

Of the many things 2020 has been, economically turbulent is certainly one of them. With the ongoing COVID-19 pandemic causing significant instability given the immense job loss, many businesses have struggled to stay afloat over the course of the year, especially in vulnerable markets. However, for the Bluerock Total Income+ Real Estate Fund, this has not been the case. Even among the real estate losses in certain areas of the United States, it appears that the company has come out nearly unscathed, posting positive returns year to date in 2020. So, how well has Bluerock Total Income+ Real Estate Fund done this year, and what can that be attributed to?

Bluerock Total Income+ Real Estate Fund’s Good Results

The Bluerock Total Income+ Real Estate Fund is a closed-end interval fund that is public to the investor and uses what can be considered a multi-manager, multi-strategy, and multi-sector strategy. This means that the fund has multiple classes of shares and invests heavily in institutional private equity real estate securities. These securities are mostly available to institutional investors who can invest millions of dollars to meet the minimum investment level, which is why buying shares of Bluerock Total Income+ Real Estate Fund is interesting for many people. The company allows more investors to be able to put their finger in the pie of larger real estate securities that would normally be out of reach without significantly more capital.

In the third quarter of 2020, the total value of the real estate securities Bluerock invested in added up to an impressive $194 billion. As a result of this, among many other factors, Bluerock Total Income+ Real Estate Fund recently released its net asset value as of the end of November, which revealed strong numbers.

In fact, the company saw the reported net asset value reach $29.50 per share. In comparison to just two months earlier in September, the value per share increased by 2.1%. When expanding to all of 2020, Bluerock Total Income+ Real Estate Fund has a positive return to investors of .93%, being bolstered by strength in the final months.

Extending the scope to its founding in 2012, the annualized net return is 7.12% with a cumulative return of nearly 75%. The shift from the initial introductory price per share of $25 to the current $29.50 price per share translates to an 18% increase. This will all result in the 29th consecutive quarterly distribution at an annual rate of 5.25%, adding to the 31 consecutive distributions so far. Considering the strength of these numbers, the question then becomes how this was achieved given the inconsistent nature of certain real estate properties in 2020.

How Bluerock Total Income+ Real Estate Fund Achieved This

The strength of the company’s 2020 can be mostly attributed to two major factors that have been beneficial for them throughout the year. The first of these is that 80% of the company’s portfolio is made up of strategic overweights for sectors such as industrial, apartment, and specialty properties. This has significantly reduced the initial economic fallout as each of these sectors in real estate has done moderately well compared to the hardest-hit areas, including the retail, hotel, and office sectors. The second major reason for the success of Bluerock Total Income+ Real Estate Fund would be the large scale investments in private institutional real estate debt. This has acted as a stop gap of sorts due to the high yields and prioritized status in the real estate capital stack. Both of these factors have left the company not only unscathed from much of the economic fallout in 2020 but with solid growth numbers that are especially impressive given the nature of the year.

Final Conclusions

Bluerock Total Income+ Real Estate Fund looks to be leaving 2020 offering its investors the same rate of distribution, a strong net added value per share, and over 2% gains within two months. And while it may take more time for the real estate market as a whole to fully recover, it will hopefully boost the company’s value even further when it does. Furthermore, what has become apparently true for Bluerock is the solid foundation of investment it has surrounded itself with even during some of the toughest economic times.

About the Author


Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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