Bluerock Total Income+ Real Estate Fund Marks 50th Consecutive Distribution Amid Rising Rates: A Steady Hand in Volatile Markets

The Bluerock Total Income+ Real Estate Fund (TI+) has reached a milestone, announcing its 50th consecutive quarterly distribution on June 18, 2025. This achievement underscores the fund's reliability as a source of steady income for investors, even as rising interest rates and market volatility test many asset classes. With a distribution of $0.3369 per share for the second quarter, TI+ continues to deliver tax-efficient returns while positioning itself to capitalize on opportunities in a shifting real estate landscape.

A Track Record of Consistency

Since its inception in October 2012, TI+ has distributed approximately $19.21 per share to investors, exceeding 75% of its initial $25 net asset value (NAV) before considering capital appreciation or reinvested distributions. This consistency is a rarity in real estate investing, where many funds struggle to maintain payouts during market downturns. The fund's 50th distribution, which annualizes to 5.25% based on the current $25.67 A-share price, reflects its disciplined approach to cash flow management.

The tax-equivalent yield of 7.99% highlights TI+'s efficiency, as 100% of the recent distribution was classified as return of capital (ROC), reducing shareholders' tax basis and potentially lowering future capital gains taxes. For income-focused investors in higher tax brackets, this structure provides an edge over traditional bonds or REITs, which often distribute fully taxable income.

Opportunistic Strategy in a High-Rate Environment

TI+'s success stems from its diversified portfolio of 31 private equity and 6 private debt real estate investments, managed by top-tier firms like Blackstone and Morgan Stanley. These holdings, valued at over $343 billion as of June 2025, span sectors including industrial, residential, and life sciences—areas where demand remains resilient despite rising rates.

Jeffrey Schwaber, CEO of Bluerock Capital Markets, notes that the current market turbulence presents a “sweet spot” for TI+'s strategy. Higher interest rates have depressed valuations in some sectors, allowing the fund to acquire undervalued properties or debt instruments. This contrarian approach aligns with TI+'s long-term focus on capital appreciation, which complements its income-generating mandate.

Navigating Liquidity and Volatility

TI+'s structure as a closed-end interval fund offers a unique balance of access and stability. While shares lack a secondary market, investors can liquidate holdings quarterly via repurchase offers, which guarantee at least 5% of shares are repurchased. In February 2025, 19.97% of tendered shares were redeemed, demonstrating flexibility even in turbulent markets.

However, liquidity constraints are a trade-off. The fund's Class A shares posted a one-year return of -2.88% through March 2025, reflecting broader real estate sector headwinds. Yet its 10-year annualized return of 5.47% and a 4.67% ten-year figure for Class I shares highlight the importance of a long-term perspective.

Risks and Considerations

TI+ is not without drawbacks. Its expense ratios, capped at 1.95% for Class A shares, are modest compared to actively managed funds but higher than passive REIT ETFs. Additionally, the lack of a secondary market means investors must plan for illiquidity, and distributions reliant on ROC could erode tax benefits over time.

The fund's exposure to private assets also carries operational risks, including potential delays in realizing gains and fees from underlying managers. Investors should review the prospectus closely, particularly the risk disclosures around capital preservation and tax implications.

Investment Takeaways

TI+ is best suited for investors prioritizing steady income and capital preservation over short-term liquidity. Its tax efficiency and institutional-grade exposure make it a compelling alternative to traditional fixed-income instruments, especially in a low-yield environment.

For those willing to accept lower liquidity, TI+ offers a way to diversify beyond public markets while benefiting from the expertise of top real estate managers. The fund's 50th distribution is not just a milestone but a testament to its ability to navigate cycles—a trait increasingly valuable as interest rates remain elevated.

As Schwaber notes, “TI+ isn't just about income—it's about building a portfolio that thrives in all markets.” In a volatile real estate landscape, this blend of discipline and opportunism may prove to be a durable advantage.