Bluerock Total Income+ Real Estate Fund Delivers a 2.57% Fourth Quarter Return and Bullish Outlook for 2021 – Wire Real Estate

Bluerock Total Income+ Real Estate Fund Delivers a 2.57% Fourth Quarter Return and Bullish Outlook for 2021


Bluerock Total Incom

iCrowdNewswire   Feb 3, 2021  3:48 PM ET

 Bluerock Total Income+ Real Estate Fund is pleased to announce a fourth quarter total return of 2.57% for the Fund’s institutional share class and delivered its eighth consecutive year of positive total returns to shareholders.  In addition, the Fund paid its 32nd consecutive quarterly distribution on December 14, 2020 at the annual distribution rate of 5.25%*.  Distributions to Class A shareholders to-date have totaled $11.47 per share vs. the current share price of $29.24 (TIPRX: A-share, 12.31.2020).

“In a challenging year plagued by the global health pandemic and a steep recession, the Fund delivered its goals of positive returns with high income and low volatility,” said Jeffrey Schwaber, CEO of Bluerock Capital Markets. “The Fund demonstrated its ability to deliver low volatility with minimal drawdowns even in the depth of the downturn1 which validates its ability to serve as a building block in creating an efficient diversified portfolio for the investor.  This marks 30 of 33 quarters of positive returns for the Fund primarily invested in an asset class that has 39 of 43 positive years since its inception with an average unleveraged annualized return of approximately 9%.  We believe Institutional Private Equity Real Estate (iPERE) is an integral, non-correlated and low volatility component of a well-diversified portfolio, and should be a holding for life”, added Schwaber.

“This performance is a result of our multi-year strategic plan to tactically overweight real estate sectors that are driven by long term, macro trends such as e-commerce, demographic shifts, and science and technology forces”, noted Adam Lotterman, Co-Founder of the Fund Advisor and Sr. Portfolio Manager.  “Specific sector overweighting included industrial, life science, multifamily and real estate debt which delivered strong outperformance in 2020 while the Fund had significantly reduced its exposure to 2020’s weaker performing sectors such as  office, retail and hotel”, added Lotterman. 

As of the end of the fourth quarter, the Fund reported gross asset value of the underlying portfolio of nearly $220 billion which was comprised of 4,300+ primarily core, high occupancy, institutional-quality real estate holdings with strategic sector weightings as follows: 35% industrial, 33% apartment, 14% specialty (including life science, medical office, and self-storage), 13% office and 5% retail2.  Approximately 95% of the Fund’s allocation was to sectors with positive performance.

The Bluerock team is bullish on institutional private real estate for 2021 as the economy is widely expected to further recover throughout the year prompted by a successful development and rollout of a Covid-19 vaccine that we believe will lead to lower unemployment levels. A strengthening economy combined with a low interest rate environment have historically bolstered real estate performance.   

2020 Standard Deviations; TIPRX: 1.4%, S&P 500: 41.5%, MSCI U.S. REIT Index: 53.1%, Bloomberg Barclays U.S. Aggregate Bond Index: 5.7%; 2020 Maximum Drawdowns: TIPRX: -2.6%, S&P 500: -33.8%, MSCI U.S. REIT Index: -44.0%, Bloomberg Barclays U.S. Aggregate Bond Index: -6.3%.

For detailed Fund holdings, please visit https://bluerockfunds.com/investment-holdings/

TI+ Fund Class A and I Net Performance

 

Performance through 12.31.2020

One Year

Five Year

Annualized Since Inception3

TI+ Fund Class A

1.37%

5.70%

7.10%

TI+ Class A4 with
Max Sales Charge

-4.47%

4.46%

6.33%

TI+ Fund Class I

1.64%

5.97%

6.54%

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.

3 Inception date of the TI+ Fund Class A share is October 22, 2012 and Class I share is April 1, 2014.

4 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 2.21% for Class A and 1.96% 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, 2021 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 $220 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. 

For copies of TI+ public company filings, please visit the U.S. Securities and Exchange Commission’s website at www.sec.gov or the Company’s website at www.bluerockfunds.com.

Contact Information:

www.bluerockfunds.com.


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