Non-traded NAV REITs reported second-quarter redemption activity that fell from the prior quarter, according to the Q2 2025 edition of The Stanger Chairman’s Report from Robert A. Stanger & Company, Inc. The decline was led by Blackstone’s BREIT, which saw redemptions equal to 2.7% of aggregate NAV, down from 3.9% in Q1 2025. 

In total, non-traded NAV REIT redemptions equaled 2.5% of aggregate NAV, compared with 3.4% in the first quarter. Still, Stanger noted that despite the moderation, redemptions remain elevated: $4.9 billion year-to-date, outpacing the $2.9 billion raised by public non-traded NAV REITs through midyear. 

“Cantor Fitzgerald, RREEF, StratCap and Starwood reported investor redemption requests that exceeded capacity limits, but redemption levels overall remain well within the expected 5% quarterly cap imposed by most programs,” said Kevin T. Gannon, Chairman of Robert A. Stanger & Co., Inc. “Since reducing their capacity limits, we estimate that Starwood’s unmet investor redemptions have grown to nearly $1 billion.” 

The report also noted that non-traded BDCs experienced an uptick in redemptions, which rose to 2.4% of aggregate NAV in Q2 from their long-running 1.5% average over the prior seven quarters. Even so, the sector remains on strong footing: fundraising of $23.2 billion year-to-date has significantly exceeded the $3.8 billion in redemptions reported across public non-traded BDCs. 

Finally, Stanger highlighted that the overall aggregate NAV of non-traded BDCs climbed past $114 billion in Q2 2025, reflecting retail investors’ continued shift toward BDCs and other credit-oriented vehicles offering higher yields.