News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Bluerock Total Income+ Real Estate Fund : Annual Report (9.30.2021)

11/30/2021 | 10:41am EDT

Annual Report

September 30, 2021

Investor Information: 1-844-819-8287

This report and the financial statements contained herein are submitted for the general information of shareholders and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale or solicitation of an offer to buy shares of the Bluerock Total Income+ Real Estate Fund. Such offering is made only by prospectus, which includes details as to offering price and other material information.

Distributed by ALPS Distributors, Inc. Member FINRA

TABLE OF CONTENTS

Shareholder Letter....................................................................................................................................

1

Portfolio Review........................................................................................................................................

9

Portfolio of Investments..........................................................................................................................

11

Statement of Assets and Liabilities..........................................................................................................

15

Statement of Operations.........................................................................................................................

16

Statements of Changes in Net Assets......................................................................................................

17

Statement of Cash Flows.........................................................................................................................

19

Financial Highlights.................................................................................................................................

20

Notes to Financial Statements.................................................................................................................

25

Report of Independent Registered Public Accounting Firm..........................................................................

33

Additional Information.............................................................................................................................

34

Supplemental Information .......................................................................................................................

35

Privacy Policy..........................................................................................................................................

37

Sector: Life Science

Sector: Industrial

Sector: Apartment

South San Fran Life Science | San Francisco, CA

Redlands Dist. Center 2 | Redlands, CA

Gables Water Street | Dallas, TX

Carlyle Property Investors

Prologis Targeted U.S. Logistics Fund

Clarion Gables Multifamily Trust

ANNUAL REPORT: (4Q 2020-3Q 2021) (UNAUDITED)

Letter from the TI+ Portfolio Managers

To Our Valued Shareholders:

We thank you for your continued support of the Bluerock Total Income+ Real Estate Fund ("TI+" or the "Fund"). While globally we are still dealing with the pandemic and its impact on a return to "normalcy," the U.S. economy has rebounded sharply from the 2020 low of the COVID-led recession with equity markets reaching new highs in September. Institutional private real estate has also performed well, led by high demand for industrial, apartments, life science and other specialty sectors coupled with constrained supply, which is characteristic of prior post-recession years. As of the end of Q3 2021, institutional private real estate generated higher yields than leading stock, investment grade bond, and even the highest rated junk bond indexes.^ This yield premium combined with rental growth opportunities, particularly in the high demand sectors listed above, have attracted more capital to the asset class, which is continuing to drive performance. We believe institutional private real estate may continue to offer attractive investment opportunities relative to traditional debt and equity investments due to higher yields supported by long- term demographic and technological demand drivers.

Looking back on the Fund's year ended September 30, 2021, we note the following highlights:

FUND HIGHLIGHTS

STRONG PERFORMANCE POST RECESSION:

The Fund posted a 15%+ total net return in the trailing 12 months through September 30, 2021 after weathering the recession as the highest returning institutional real estate interval fund in 2020 (01.01.2020 - 12.31.2020)1. The Fund also celebrated its nine- year anniversary on 10.22.2021 and surpassed $3 billion in net assets under management.

BLUEROCK'S ACTIVE MANAGEMENT:

The Fund maintained a strategic overweight to sectors we believe have strong secular tailwinds driven by evolving consumer preferences, demographic changes, and technological advancement, including industrial, apartments, life science and other specialty sectors. We also maintained a significant underweight to sectors with challenging fundamentals, such as commodity office and retail.

A FOCUS ON INSTITUTIONAL PRIVATE REAL ESTATE:

Approximately 95% of the total portfolio remains in institutional private real estate. TI+ has consistently focused on providing investors a diversified portfolio of institutional private real estate as opposed to public real estate securities. Historical evidence indicates that the two asset classes tend to perform similarly over long periods of time, but institutional private real estate has done so with 80% less volatility over the past 20 years.2 We believe access to a fund more heavily weighted to institutional private real estate is a valuable tool for investors in constructing their portfolios.

  1. Source: Morningstar Direct; Institutional real estate interval funds are those identified as real estate by interval fund tracker and those that invest in institutional real estate.
  2. Source: Morningstar Direct. Institutional real estate as measured by the NCREIF Property Index (NPI) and public real estate securities as measured by the MSCI U.S. Real Estate Investment Trust Index. For the 20 years ended 9.30.2021, the NPI generated an 8.40% return and a 4.67% standard deviation and the MSCI U.S. REIT Index generated a 10.17% return and 22.01% standard deviation.

TI+ A-shares as of 9.30.2021: 1 year no load: 15.53%, with load: 8.90%, 3 year no load: 7.46%, with load: 5.36%, 5 year no load: 7.41%, with

load: 6.15%, since inception (10.22.2012) no load: 7.92%, with load: 7.21%. Past Performance is not a guarantee of future results.

CORPORATE HEADQUARTERS | 1345 AVENUE OF THE AMERICAS | 32ND FLOOR | NEW YORK, NY 10105 | 877.826.BLUE (2583) | BLUEROCK.COM

1

ANNUAL REPORT (4Q 2020 - 3Q 2021) | BLUEROCK TOTAL INCOME+ REAL ESTATE FUND

(UNAUDITED)

TI+ Active Overweights vs. the Index in Targeted Sectors Have Contributed to the Fund's Performance

Fund Sector Overweights and Trailing Sector Returns

40%

+48%

38%

+14%

30%

30%

26%

26%

20%

+167%

10%

16%

6%

0%

INDUSTRIAL

APARTMENT

SPECIALTY

Q3 2021 SECTOR

10.9%

6.5%

3.5%4

3

INDEX RETURNS

QUARTERLY RETURNS

84% of TI+ Underlying Portfolio allocated to top three performing sectors in Q3

2021

TI+ SECTOR ALLOCATIONS AS OF 9.30.20213

INSTITUTIONAL REAL ESTATE INDEX (NCREIF) SECTOR ALLOCATIONS AS OF 9.30.20213

  1. National Council of Real Estate Investment Fiduciaries Property Index, Q3 2021 sector total returns.
  2. Average quarterly return for specialty sector is the arithmetic average of all alternative property sectors including self storage, health care, and other categories.

Market Overview

Given the economic rebound, market focus has shifted to inflation, rising interest rates, supply chain obstacles, and an accommodative Federal Reserve. Our view is that inflation may end up being stickier than the Fed had initially hoped, in part driven by supply chain bottlenecks and labor shortages. The Fed recently stated it will reduce its bond purchases (begin tapering) by $15 billion per month with a target of ending bond purchases by the middle of next year. Additionally, the Fed voted not to raise the Fed Funds rate in the fourth quarter, due in large part to a still recovering labor market and a desire to conclude bond purchases before raising rates.

Accommodative fiscal and monetary policies have turned a low interest environment into a negative real yield environment that is likely to have broad effects on all asset classes. Negative real yields for Treasuries and investment grade credit are unappealing for many bond market investors. Given the recent run up in equity prices and historically high stock valuations, institutional real estate looks particularly attractive.

While the Fed may see inflation as transitory, we recognize investors are concerned about inflation and how it might impact their investment portfolios. We believe our shareholders should feel confident in this environment due to institutional real estate's historical performance in inflationary environments and the inherent benefits of inflation on real estate.

Historically, real estate has performed above its long terms averages in inflationary and rising rate periods, while investment grade bonds have performed below their long term average.

Outperformance During Rising Interest Rate Environments5

RETURN

16%

12%

ANNUALIZED

8%

4%

AVERAGE

0%

RISING INTEREST RATE ENVIRONMENTS

INSTITUTIONAL PRIVATE EQUITY REAL ESTATE

10-YEAR U.S. TREASURY BOND TOTAL RETURN HISTORICAL RETURN SINCE NPI INCEPTION

Outperformance During High Inflation Environments5

RETURN

12%

ANNUALIZED

8%

4%

AVERAGE

0%

HIGH INFLATION ENVIRONMENTS

INSTITUTIONAL PRIVATE EQUITY REAL ESTATE

BONDS

HISTORICAL RETURN SINCE RESPECTIVE INDEX INCEPTION

  1. Source: NCREIF, US Federal Reserve. A rising interest rate environment is defined as quarters when the Effective Federal Funds Rate (FFR) increased 25 basis points or more; NCREIF Property Index (NPI) and 10-year US Treasury Bond Total Return (ICE BofA US Treasury 7-10 yr.) tallied, averaged and annualized for those quarters. Analysis since NPI inception (Jan 1978) through Dec 2020. A high inflation environment is defined as quarters when the Consumer Price Index (CPI) increased 100 basis points or more; NCREIF Property Index (NPI) and Bloomberg Aggregate Bond Index tallied, averaged and annualized for those quarters. Analysis since Bloomberg Aggregate Bond Index inception (Jan 1980) through Dec 2020.

2

ANNUAL REPORT (4Q 2020 - 3Q 2021) | BLUEROCK TOTAL INCOME+ REAL ESTATE FUND

(UNAUDITED)

Outlook

We believe the current outlook presents tremendous opportunities for both institutional private real estate and TI+. While bond markets grapple with negative real yields and stock markets battle high valuations, institutional private real estate appears to be a beneficiary of the broader economic landscape where economic growth and inflation have pushed rental rates and values higher.

Institutional real estate as an asset class, like stocks, has typically exhibited differentiation across sectors and today's environment is no different. The Fund's investment strategy is thematic-based, attempting to capitalize on long-term structural trends, not just economic cycles. Accordingly, the Fund plans to maintain its focus on the industrial, apartment, life science and other specialty sectors. The growth of E-commerce is an undeniable long-term catalyst for industrial demand. Demographics and overall housing shortages continue to push apartment and single family rental housing demand higher, while specialty property sectors such as life sciences stand to benefit from increased pharmaceutical research and development.

The Fund offers access to a diversified, actively managed, institutional private real estate portfolio, supported by a 9-year track record of positive returns, low volatility and 35 consecutive quarterly distributions,* all of which we believe are essential components of a balanced investment portfolio. We believe these accomplishments and thematic approach may offer continued benefit to our shareholders and distinguish us from our peers.

Sincerely,

Adam Lotterman

Jordan Ruddy

Co-Chief Investment Officer and

Co-Chief Investment Officer

Senior Portfolio Manager

and Portfolio Manager

Bluerock Total Income+ Real Estate Fund

Bluerock Total Income+ Real Estate Fund

FUND SUB-ADVISORS

About Mercer Investment Management

Mercer Investment Management, Inc. ("Mercer"), acts as sub-advisor to the Fund's private real estate investments. For more than 75 years, Mercer has been one of the world's leading advisors to endowments, pension funds, sovereign wealth funds and family offices globally, with over 10,600 clients worldwide, and over $15.5 trillion in assets under advisement (as of 12.31.2020). Mercer works to evaluate over 6,700 investment managers and over 35,600 individual investments/strategies (as of 6.30.2021) and works with Bluerock to select a strategic combination of 'best-in-class' institutional real estate managers and investments for the Fund.

About DWS

DWS Group GmbH and Co. KGaA ("DWS") formerly Deutsche Asset Management), through its indirect subsidiary RREEF Investment, LLC, acts as sub-advisor to the Fund's public real estate securities investments and is a registered investment adviser under the Investment Advisers Act of 1940. DWS' real estate business in the U.S. dates back to 1975. Today, DWS has $1.0 trillion in assets under management and works with 675+ institutional clients. Of that total, approximately $81.8 billion of AUM is invested in public and private real estate globally, making DWS one of the largest real estate managers in the world (as of 6.30.2021).

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Bluerock Total Income+ Real Estate Fund published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 15:40:06 UTC.


© Publicnow 2021
Latest news "Companies"
01:06pMERCEDES BENZ : 2022 Monaco Grand Prix - Saturday
PU
12:52pSiemens Mobility wins $8.7 billion high-speed rail deal in Egypt
RE
12:41pGERRY WEBER INTERNATIONAL AG : Preliminary announcement of the publication of quarterly reports and quarterly/interim statements
EQ
12:39pSri Lanka to pay $72.6 mln for 90,000 T Russian oil, minister says
RE
12:36pSIEMENS : Moving Egypt
PU
11:56aHIKAL : Press Release FY22Q4
PU
11:56aHIKAL : Results Presentation Q4FY22
PU
11:48aCoal India to import for first time in years as power shortages loom
RE
10:36aVAPORESSO EXCITING NEW PRODUCT, TECH & STREET ARTIST COLLABORATION at The Vaper Expo UK, Birmingham NEC on the 27th - 29th May 2022
AQ
08:29aPutin tells French and German leaders he's willing to discuss Ukrainian grain shipments
RE
Latest news "Companies"