The Real 1% - Div Cap Total Realty Trust Investors

Dividend Capital's Total Realty Trust (TRT), a non-traded REIT, filed an 8-K yesterday where it disclosed that it's going to redeem 130,000 shares in the second quarter as part of its quarterly share repurchase program.  The 8-K stated that TRT had received redemption requests for 12.8 million shares as of the second quarter's redemption request deadline date.  The amount of shares TRT will redeem is only 1% of redemption requests - or one cent for every one dollar of redemption requests.  In its benevolence, TRT announced it will redeem the 1%, pro rata.  Don't spend that whole penny in one location.  I casually watch non-traded REIT redemption requests, but I can't remember such a large disparity for a non-traded REIT with an open share repurchase plan like TRT's.

TRT's large gap between redemption requests and actual redemptions is not new, but it's progressively getting worse, as the requests increase and the number of shares TRT redeems decreases.  Here is a table from TRT's 2012 first quarter 10-Q:

The following table sets forth relationships between the amount of redemption requests received by us pursuant to our share redemption program, the resulting pro-rata redemption caps, and actual amounts of shares redeemed for each of the last four quarterly periods (share amounts in thousands).

Period		Total Number of Shares Requested				Redemption Cap				Pro-rata Percentage of Redemption Requests Redeemed by Us				Shares Redeemed Pro-rata				Shares Redeemed Pursuant to Death and Disability Puts				Total Number of Shares Redeemed
Q2 2011			10,000				890				9	%			850				379				1,229
Q3 2011			11,200				1,000				9	%			968				538				1,506
Q4 2011			11,400				826				7	%			810				446				1,256
Q1 2012			11,700				628				5	%			628				883				1,511
Total			44,300				3,344				8	%			3,256				2,246				5,502

See “Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds” of this Quarterly Report on Form 10-Q for more information regarding redemptions of shares during the three months ended March 31, 2012

TRT's second quarter figures are worse than any quarter above, and if its Q2 statistics were added to the table above, they would show a 9.4% increase in share redemption requests to $12.8 million shares;  a 79.3% drop in actual redemptions to 130,000 shares; and an 80% drop in the pro rate redemption percentage to 1%.