ELLICOTT CITY, MD—With a view toward providing more data and spotting trends in the non-listed REIT space, the Investment Program Association is partnering with DST Systems Inc., reportedly the largest provider of transfer agency services, on analytics reporting for the sector. DST has access to data at the broker-dealer, advisor and shareholder levels; data already compiled gives an indication of the growth in the non-listed REIT and business development company arena, which IPA president Kevin Hogan tells GlobeSt.com is “still a young industry.”

Based on data for calendar 2014, the IPA/DST partnership has found that more than 30,000 financial advisors used non-listed REITs or BDCs in their practices. This past year, more than 1.2 million investors had non-listed REITs or BDCs in their investment portfolio, and invested a total of $21.6 billion in these vehicles. In turn, $5.9 billion in distributions was paid to investors, 30.4% of which was reinvested.

With its Applied Analytics Group now serving as statistical and analytical advisor to the IPA, DST also found that 84% of the investors in non-listed REITs and BDCs last year were age 50 and over, while 41% were age 65 and over. Those numbers, Hogan says, corroborate what the IPA has sensed about non-listed REITs: that they're favored as income-producing vehicles for investors approaching retirement age.

Working jointly with the Kansas City, MO-based DST, the IPA plans to identify and research trends on products, sponsors, broker-dealers, advisors, and shareholders related to direct investments. The association plans to issue regular updates on industry statistics and trends, although Hogan says the IPA hasn't yet decided on the frequency of these updates.  The first one is likely to be produced in August, as data for the first half of the year become available, he says.

The industry dates back perhaps three decades, Hogan says. “It has only been over the past few years that it has reached its current levels of organization and sophistication,” he says. “It's been very gratifying to see.”