KKR has become the latest non-traded REIT to limit redemptions. The company revealed in a regulatory filing this week that investors sought to withdraw more than 8% of KKR Real Estate Select Trust’s (KREST) $1.6B in assets during the past three months. KKR said the KREST redemption requests far exceeded its 5% quarterly limit in the past three months. Barron’s reported that the company wrote in its filing that the REIT limited withdrawals to 62% of requests. This follows news last month that the Blackstone Real Estate Income Trust (BREIT) and the Starwood Real Estate Income Trust (SREIT) limited withdrawals after quarterly and monthly redemption limits were breached. Investors have been running for the exits at non-traded REITs, triggering withdrawal limits the REITs use to prevent them from having to make forced sales. The non-traded REITs say they need redemption caps to protect investors because their corporate real estate (CRE) assets typically have limited liquidity. In the regulatory filing, KREST CEO Billy Butcher said “Within KREST, we are balancing providing access to private real estate, which is an illiquid asset class, with the recognition and understanding that regular liquidity is an important feature for KREST shareholders.”

Finsum:KKR becomes the latest non-traded REIT to limit redemption requests to maintain liquidity.