REITs, or Real Estate Investment Trusts, were created by Congress in 1960 to allow average investors the opportunity to invest in large-scale, income producing real estate. To qualify as a REIT and enjoy preferential tax treatment from the IRS, a REIT must annually distribute at least 90% of its taxable income in dividends to its shareholders. In other words, REITs pass through most of their income directly to shareholders, and in turn pay no taxes on this income at the REIT level. In the same way shareholders benefit by owning stocks of other corporations, shareholders of REITs earn a pro-rata share of the income produced through ownership of real estate.
A REIT is a company that owns and operates income producing real estate such as office buildings, apartments, shopping centers, hotels and warehouses. Many of these REITs are public companies and traded on national stock exchanges (NYSE, AMEX, NASDAQ), while others are not publicly listed and are referred to as non-traded public REITs.
Original share price is the original issuance price of non-traded public REIT shares.
Book value is the most recently published total shareholders' equity divided by shares outstanding.
Recent secondary market trading prices show the price per share and total purchase price paid for past non-traded public REIT auctions conducted through REITbid.
Many non-traded public REIT managers publish an estimated net asset value (NAV) per share. To make this calculation, REIT managers rely in part on an estimate of the fair market value of the REIT's real estate investments, then adjust to give effect to other REIT assets and liabilities, including mortgages. The resultant valuation is then divided by the number of shares outstanding to arrive at a NAV per share.
Historic dividends are the recent amounts paid by a non-traded public REIT to its shareholders. Dividends are typically distributed quarterly and are subject to adjustment at each distribution period.
FFO is a financial calculation that is widely recognized in the REIT industry as a measure of operating performance, or cash flow. FFO is defined by the National Association of Real Estate Investment Trusts (NAREIT) as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of property, plus depreciation and amortization on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. FFO was developed by NAREIT as a measure of performance to recognize that income-producing real estate has historically not depreciated consistent with the basis as determined under GAAP.
A valid credit card is required to verify your identity. The card will be authorized for $1 (U.S.) and immediately released once identity is confirmed. Credit cards are not used to purchase shares.
Visit the Auction Search Page and use the advanced search filters.
Inventory on REITbid and FRE.com changes daily. If you do not see auctions for the non-traded public REIT you would like to purchase, please select the Receive REIT Updates icon (see below) located on every REIT Profile that you are interested in, and you will be notified when shares become available for that particular REIT.
Additionally, if you do not see a REIT Profile for a non-traded public REIT you are interested in purchasing, please contact an Auction Specialist regarding your interest.
REITbid is able to accommodate auctions of shares for most non-traded public REITs. Please visit REITbid's auction platform to register your interest to sell by clicking here. If you indicate an interest in selling shares of a specific REIT, an Auction Specialist will contact you to begin the process.
There are no on-site, live auction events. All auctions are conducted over the Internet.
REITbid utilizes the premiere auction platform FRE.com to perform all non-traded public REIT share auctions.
Non-traded public REIT share auctions display on the website and are open for bidding for 14 days. However, the bid deadline may be extended if the website's Last Call feature is triggered.
Last Call is a bid extension feature that extends the bid deadline by a specific time increment if bids are received within the last moments of an auction. Further information about Last Call can be found in the Terms & Conditions of Sale located under the Documents section on each auction profile page.
Yes, there is a $50 auction posting fee for each auction you post on the website. Sellers are also responsible for clearing costs for each auction transaction.
Yes, you can sell multiple shares across multiple auctions. However, listing fees still apply on every auction. If you wish to sell shares in this manner, please contact a REITbid representativeby calling (800) 494-7600, or emailing firstname.lastname@example.org.
Yes, you may sell shares from more than one REIT. Each REIT requires its own auction and a setup fee applies to each.
Once you have submitted your auction for review, a REITbid representative will verify your information with the REIT sponsor and then follow up with you directly. The REITbid representative will confirm the auction start date and the minimum bid amount, and will go over all items that were marked as pending during the setup process.
No. Once the reserve price and number of shares for sale have been set and the auction has begun, you are required to sell your shares under those conditions.
You are welcome to accept or decline any offer that is below your reserve price. You can also choose to relist your shares in a new auction in case your reserve price was not met. For additional information about the relisting process, please contact a REITbid representative by calling (800) 494-7600. You can also email email@example.com. and a member of our auction support team will follow up with you shortly.
Yes. In addition to the total bid amount, which is the winning bid amount multiplied by total number of shares in the auction, the buyer is responsible for additional fees outlined in the Terms and Conditions of Sale. Terms and Conditions are available in the Documents section on each auction page.
No. Each REIT share auction is for all shares listed under the Number of Shares.
Yes, but you are still responsible for completing all transactions for every auction where you are the winning bidder.
If you are a bidder in an auction, you will be notified via email each time a new bid is placed. If you are not a bidder but would like to monitor bidding activity, you can add the auction to your Watch List and you will be notified via email each time a bid is placed.
A REITbid representative will contact you via email informing you that you are the winning bidder. At that time, transfer documents will be routed to you for signature along with instructions on where to send documentation and wire purchase funds. Once fully executed documents and funds are received, transfer documents are forwarded to the REIT sponsor to process the transfer. Additional details are outlined in the Terms and Conditions located in the Documents section of each auction.
Shares are purchased via wire transfer or check and are sent to the clearing agent processing your transaction. Please refer to the Terms and Conditions in the Documents section on each auction page for additional details.
REITbid was created to match buyers and sellers of non-traded public REIT shares in a format that is simple and effective. REITbid utilizes an advanced auction platform powered by FRE.com. This platform allows buyers and sellers the convenience and transparency of online bidding, and access to information on non-traded REITs to assist informed decision making.
REITbid was created by a team of veteran real estate professionals with extensive experience in securities, real estate investment management, sales and real estate auctions.
Click here to learn about our Executive Team.
FRE.com is where REITbid's non-traded public REIT auctions take place. REITbid and FRE.com partnered in 2011 to create an efficient auction marketplace for buyers and sellers of non-traded public REIT shares.