The nontraded REIT fundraising league table for the quarter ended June 30, 2026 looks the way it has looked for most of a decade: Blackstone Real Estate Income Trust at the top, a Blue Owl vehicle second, a long tail of bank and asset manager brands below. Read as a gross number it says the sector is healthy. Read net of repurchases, which is how an investor’s own money actually moves, it says something more specific and more useful. Across the 29 perpetual nontraded REITs that file quarterly reports with the SEC, gross capital raised in Spring 2026 was $4.17 billion, repurchases took $1.82 billion back out, and the net inflow was $2.32 billion. Nearly half of that net figure went to four net lease vehicles.
That is the finding this piece is built around, and it comes from the filings rather than from sponsor submissions. Every figure here is drawn from each REIT’s own 10-Q, produced by the same rule for every fund, and published with a link to the source on the REIT Rankings capital raised, net flows and distribution coverage pages. This article is the reading of those tables. The tables themselves are the record.
Three numbers frame the quarter. Blackstone’s BREIT raised $1.11 billion gross, 27 percent of everything raised by the group, but after $969 million of repurchases its net inflow was $144 million, six percent of the group’s net. Blue Owl Real Estate Net Lease Trust raised $728 million gross and kept $584 million of it, the largest net inflow in the sector by a wide margin. And the three largest raisers together took 51 percent of gross capital: half the sector’s inflow went to three funds.
Gross fundraising rewards distribution reach, not performance
The gross ranking is a map of wholesale distribution. BREIT sells through every major wirehouse and the largest independent broker-dealer networks, and it also carries the largest distribution reinvestment plan in the sector: $303 million of its Spring 2026 raise was reinvested distributions rather than new cash. Blue Owl’s net lease trust raised $578 million in its public offering and a further $150 million through a private placement channel for institutions and family offices, one of only two funds in the group that report that channel on its own line (Brookfield Real Estate Income Trust is the other). Fortress Net Lease REIT, at $304 million, doubled its raise from the same season a year earlier. North Haven Net REIT, Morgan Stanley’s net lease vehicle, raised $228 million, up from $89 million in Spring 2025.
Ares Real Estate Income Trust is the one name on the gross list that needs a footnote. Its $300 million of share proceeds includes capital that arrived through its Delaware statutory trust exchange program and was later converted into operating partnership units, which is why industry trackers that use sponsor-reported figures show a larger number for Ares than the common stock line does. The same program structure explains why JLL Income Property Trust, which raises most of its capital through DST interests sold to 1031 exchangers, appears small on a filings-based list. For a reader on this site that distinction matters: the DST channel is where a large share of 1031 exchange capital now lands, and it is invisible in a fundraising table that counts only common shares.
None of this makes the gross ranking wrong. It makes it a ranking of something specific. A sponsor that can raise a billion dollars a quarter has pricing power with its lenders, can buy without waiting for proceeds to accumulate, and can absorb repurchase requests without selling assets. Those are real advantages. They are also entirely separate from whether the portfolio is earning its distribution.
Net flow is the number advisors should be asking for
Subtract repurchases and the picture reorganizes. Blue Owl Real Estate Net Lease Trust leads at $584 million net. Fortress Net Lease REIT follows at $278 million, Ares Real Estate Income Trust at $274 million, North Haven Net REIT at $218 million and J.P. Morgan Real Estate Income Trust at $164 million. BREIT drops from first to sixth. A year earlier BREIT’s net flow for the same season was negative $869 million, so the swing to a positive $144 million is the most important single change in the table, and it is a change that the gross number alone would have shown as a modest increase in fundraising.
Six funds shrank in Spring 2026, meaning repurchases exceeded everything raised. Starwood Real Estate Income Trust paid out $65 million against $3 million raised. FS Credit Real Estate Income Trust repurchased $142 million against $99 million raised. JLL Income Property Trust, Cantor Fitzgerald Income Trust, RREEF Property Trust and Invesco Real Estate Income Trust were also net negative. A negative quarter is not by itself a problem; a fund that fulfills every repurchase request within its stated limits is doing what it promised. The question it raises is where the cash came from, and that is a question about the operating cash flow line rather than the fundraising line.
The repurchase column is the one most often missing from the fact sheets that advisors are handed. Sponsors disclose it in the quarterly report under financing activities, and the industry league tables publish fundraising gross by convention. Putting the two side by side is the single most useful thing a nontraded REIT data series can do, and it is why the REIT Rankings series publishes net flow as its own page rather than as a column.
Net lease took almost half of the net inflow
Here is the stretch. Add the four net lease vehicles in the group, Blue Owl Real Estate Net Lease Trust, Fortress Net Lease REIT, North Haven Net REIT and New Mountain Net Lease Trust, and their combined net inflow in Spring 2026 was $1.13 billion, 49 percent of the $2.32 billion that flowed into the entire sector net of repurchases. Four funds, all launched since 2022, all built on long-duration leases to single tenants, absorbed nearly half the sector’s net new capital.
Advisors are not buying a property type when they allocate to these funds. They are buying a cash flow structure: contractual rent escalators, tenant responsibility for operating costs, and lease terms measured in decades. With the 10-year Treasury above five percent in the fall of 2026, that structure prices like a credit instrument with an equity residual, and advisors have allocated to it as one. The capital flow is the market saying it wants duration and credit, and it is saying it through the nontraded REIT wrapper because that is where the wholesale distribution is.
The implication for anyone who owns net lease property directly is that the institutional bid for single-tenant assets was funded by more than a billion dollars of net retail capital in a single quarter from these four vehicles alone, before counting the listed net lease REITs. That bid is most intense for investment grade tenants on long remaining terms, which is the inventory the investment grade REITs and the nontraded net lease funds compete for. Sellers of that inventory have more buyers than they did two years ago. Buyers have less margin for error on cap rate.
Distribution coverage separates the raisers from the earners
The third table in the series tests whether operations paid the distribution. It divides net cash from operating activities by cash distributions paid to common stockholders over the first half of 2026, both from the statement of cash flows, so it ignores depreciation, fair value marks and reinvested distributions and asks only whether the cash came in before it went out. Of the 24 nontraded REITs with both figures isolated in their filings, 20 covered their distributions from operations and four did not.
Two of the four are names that sit high on the fundraising table. Hines Global Income Trust, seventh by gross raise, covered 19 percent of its first-half distributions from operating cash flow, with the balance funded from capital. Ares Real Estate Income Trust, fourth by gross raise and third by net flow, covered 45 percent. Ares Industrial Real Estate Income Trust covered 87 percent and RREEF Property Trust 90 percent. Credit-focused funds can show distorted coverage in a single six-month window because interest income and the interest on their repurchase facilities settle on different schedules, which is one reason several of them are held back from this edition’s table until the second-half filings are in. The Hines and Ares equity figures do not have that excuse.
On the other side of the ledger, the net lease funds that led the net flow table also covered their distributions comfortably: Blue Owl’s net lease trust at 1.73 times, Fortress Net Lease at 1.83 times, North Haven at 2.36 times and New Mountain at 1.18 times. BREIT covered at 2.17 times on $1.21 billion of operating cash flow against $560 million of cash distributions, which is the strongest argument in its favor and one that the fundraising ranking cannot make for it.
Read the three tables together and a pattern appears that no single ranking shows. Capital is flowing fastest, net, to funds that are earning their distributions. The funds that are raising well but not covering are the ones to watch, because an uncovered distribution is sustainable only as long as the inflows that fund it continue, and inflows are the one thing in this sector that can reverse in a quarter.
Why the filings beat the fact sheet
The nontraded REIT industry has had subscription data vendors for twenty years, and their numbers are useful. They are also, by construction, what sponsors submit: total fundraising across every vehicle and share class, often including capital received after quarter end, and almost always reported gross. The 10-Q is a different kind of document. It is filed under penalty, it has been structured in machine-readable XBRL for more than a decade, and it reports the same lines in the same way for every REIT. A fundraising figure taken from the cash flow statement cannot be reclassified by a marketing department, and a repurchase figure cannot be left off.
The cost of using the filings is lag and definition. A 10-Q arrives up to 45 days after the quarter, and the quarter’s number has to be isolated by subtracting one year-to-date total from another, which is why a handful of funds show as held back in any given edition. The benefit is that every number can be checked by anyone with a browser in a few minutes, and the method page says exactly what each one means. For an advisor who has to defend an allocation to a client, that is worth more than a number that arrives three weeks sooner.
What the series will add next
Returns are deliberately absent from this edition. Net asset value per share and total return are published monthly by each sponsor in prospectus supplements and current reports, as text rather than as structured data, and the computed return from those documents has to reconcile with the figure the sponsor itself publishes before it is worth printing. That reconciliation is being built now, fund by fund, and returns will be added to the series as each fund passes. Repurchase fulfillment, the share of requests actually honored, is the other column investors ask for and the next one in line.
The Summer 2026 edition, covering July through September, will follow the third quarter filings in November. Each edition keeps its own permanent page, so the same fund can be followed across seasons, and the pages are regenerated from the source data rather than edited by hand.
How family offices and accredited investors reach this market
Most of the funds in these tables sell Class I shares through registered investment advisors and the private wealth arms of the banks that sponsor them, with minimums that vary by platform. Several, including the Ares, JLL and Cantor Fitzgerald vehicles, also run Delaware statutory trust programs that accept 1031 exchange proceeds and later convert into fund units through a 721 contribution. That path defers the gain but changes what the investor owns, from a replacement property that can be exchanged again into a partnership interest whose redemption is a taxable event. The tradeoffs are laid out in the 721 UPREIT versus direct replacement property comparison on this site, and they are the first thing to settle before the fundraising tables become relevant to an exchange decision.
The fundraising and coverage data describe the vehicles. They do not describe whether the wrapper fits a given investor’s liquidity, tax and estate position. A fund that is raising a billion dollars a quarter and covering its distribution twice over can still be the wrong place for an exchanger who may need to sell in five years. Investment Grade works with sellers and buyers of net lease property directly, and the direct route remains the one that keeps the next exchange available.
Frequently asked questions
Which nontraded REIT raised the most capital in the second quarter of 2026?
Blackstone Real Estate Income Trust raised $1.11 billion of gross capital in the quarter ended June 30, 2026, measured as cash from common share sales plus reinvested distributions in its 10-Q. Blue Owl Real Estate Net Lease Trust was second at $728 million including a $150 million private placement, and Fortress Net Lease REIT third at $304 million. Together the three took 51 percent of the $4.17 billion raised by the 29 nontraded REITs that file quarterly reports with the SEC. Measured net of repurchases, Blue Owl’s net lease trust led at $584 million and BREIT fell to sixth at $144 million.
What is the difference between gross capital raised and net flow for a nontraded REIT?
Gross capital raised is everything that came in through the offering: cash share sales, separately reported private placements and distributions reinvested in new shares. Net flow subtracts the cash paid to repurchase shares in the same quarter. The gap can be large. In Spring 2026 the sector raised $4.17 billion gross but only $2.32 billion net, and six funds had negative net flow, meaning they paid out more in repurchases than they took in. Net flow is the better guide to whether a fund is growing, while gross raise is the better guide to the strength of its distribution network.
Why did nontraded net lease REITs attract so much capital in 2026?
Four net lease vehicles, sponsored by Blue Owl, Fortress, Morgan Stanley and New Mountain, took $1.13 billion of net inflow in Spring 2026, 49 percent of the sector total. Their appeal is structural: long leases to single tenants with contractual rent increases and tenant responsibility for operating costs produce cash flows that behave like credit instruments, which is what advisors wanted with the 10-year Treasury above five percent in the fall of 2026. Those funds also covered their distributions from operating cash flow at between 1.2 and 2.4 times in the first half of 2026, while several diversified funds did not.
How can an investor tell whether a nontraded REIT is covering its distribution?
Divide net cash provided by operating activities by cash distributions paid to common stockholders, both from the statement of cash flows in the quarterly report, over at least six months so that working capital swings are damped. A ratio above one means operations generated more cash than was paid out. In the first half of 2026, 20 of 24 nontraded REITs with both figures available covered their distributions this way. Hines Global Income Trust at 0.19 times and Ares Real Estate Income Trust at 0.45 times were the clearest cases of distributions funded substantially from capital, and both also ranked in the top seven by gross fundraising.
Can 1031 exchange proceeds be invested in a nontraded REIT?
Not directly, because REIT shares are not like-kind property. Several sponsors in these tables, including Ares, JLL and Cantor Fitzgerald, run Delaware statutory trust programs that accept exchange proceeds into a trust that holds real property, then offer a later contribution of that interest into the REIT’s operating partnership under Section 721. The exchange is preserved at the DST step and the gain is deferred again at the 721 step, but the investor ends up holding partnership units that cannot be exchanged a third time, and any redemption is taxable. For an exchanger who wants to keep the option of exchanging again, a direct replacement property remains the only path that does.
All figures are from each REIT’s Form 10-Q for the quarter ended June 30, 2026, as compiled on REIT Rankings, where every number links to its filing. Investment Grade publishes data and analysis, not investment advice. Nothing on this page is a recommendation to buy, sell or hold any security.
