By Robbie Whelan | The Wall Street Journal
Regulators are about to shine a light on an expanding but opaque corner of the real-estate investment market.
The Financial Industry Regulatory Authority, Wall Street’s self-regulator, is planning rule changes that would require so-called nontraded real-estate investment trusts to improve disclosure on fees and to more quickly report on changes in the value of properties in their portfolios.
The move comes amid a boom in demand for these types of funds, which buy office buildings, stores and other commercial real estate and send most of the properties’ income to shareholders. Unlike typical REITs, shares in these funds don’t trade on public exchanges, making them less liquid.
