Yieldstreet Provides Q3 Update On Its Non-Traded REIT

Yieldstreet, a New York-based alternative investments platform with more than $3 billion in assets under management, posted its third-quarter results on Nov. 1. Real estate is the largest asset class, accounting for 25.5% of the platform’s total active assets under management (AUM). This means that out of the $1.5 billion active AUM (as of Sept. 30), real estate investments account for approximately $382.5 million.

New REIT Fund

Yieldstreet launched its new Growth & Income REIT this year that invests in commercial real estate properties across key markets in the U.S. The REIT has ownership stakes in three multifamily assets — Tucson Multi-Family Equity, Dallas-Fort Worth Multi-Family Equity and Atlanta Multi-Family Equity. 

Despite the volatile markets, the Yieldstreet REIT fund is on track to deliver resilient returns, thanks to surging rents. In addition, even though existing home sales are declining lately, median home prices are still significantly higher compared to prepandemic levels. 

The Tucson Multi-Family Equity property in Arizona has an occupancy rate of 94%, while the Texas-based Dallas Fort-Worth Multi-Family Equity has a 93% occupancy rate. The relatively newer Atlanta Multi-Family Equity is currently 97% occupied and is 100% leased as of August. The Georgia-based luxury complex’s occupancy rate has risen by nearly 11% since last November. 

Across the Tucson property, rents have risen by 16% on newly signed leases and by 10% on renewals. The Dallas-Fort Worth Multi-Family property, on the other hand, raised rents by 20% on new lease agreements and 13% on leases to be renewed. These rental increases are expected to absorb the higher mortgage costs while maintaining the properties’ profit margins. 

U.S. Real Estate Landscape

As the Federal Reserve maintains its aggressive hawkish stance, the U.S. real estate market has taken a hit. Even though median prices are still above historical averages, lenders have been wary of issuing additional debt. This has impacted Yieldstreet’s growth and expansion targets. However, the platform is bullish on multifamily properties, as the demand for such rental units remains robust.

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