Nuveen Global Cities REIT Net Income Plunges 84% Amid Rising Expenses

TL;DR

Nuveen Global Cities REIT's net income cratered, indicating underlying issues beyond just revenue, so tread carefully.

AI Summary

Nuveen Global Cities REIT, Inc. reported a significant decrease in net income for the nine months ended September 30, 2025, falling to $467 thousand from $2.992 million in the prior year, a 84.4% decline. Total revenues saw a modest increase to $158.340 million from $156.332 million, primarily driven by higher rental revenue of $137.516 million, up from $133.080 million. However, total expenses also rose to $138.514 million from $136.064 million. The company experienced a substantial negative shift in 'Total other (expense) income,' moving from a $4.452 million income in the three months ended September 30, 2024, to a $740 thousand expense in the same period of 2025, and a $19.359 million expense for the nine months ended September 30, 2025, compared to a $17.276 million expense in 2024. This was largely influenced by a decrease in realized and unrealized gains from real estate-related securities, which dropped from $12.080 million to $3.654 million year-over-year for the nine-month period. The company's total assets increased to $2.752 billion as of September 30, 2025, from $2.597 billion at December 31, 2024, with investments in real estate, net, growing to $1.815 billion from $1.741 billion.

Why It Matters

This sharp decline in net income, despite revenue growth, signals potential operational inefficiencies or increased cost pressures for Nuveen Global Cities REIT. Investors should scrutinize the 'other income (expense)' line item, particularly the reduced gains from real estate-related securities, as this significantly impacted profitability. In a competitive real estate market, a REIT's ability to generate consistent net income is crucial for dividend sustainability and long-term shareholder value. Employees and customers might see indirect impacts if the company's financial performance continues to weaken, potentially affecting future investments or service quality. The broader market may view this as a cautionary tale for REITs heavily reliant on investment gains.

Risk Assessment

Risk Level: medium — The net income for the nine months ended September 30, 2025, plummeted by 84.4% to $467 thousand from $2.992 million in the prior year, despite a slight increase in total revenues. This significant drop, coupled with a substantial negative shift in 'Total other (expense) income' from $4.452 million income to $740 thousand expense for the three months ended September 30, 2025, suggests deteriorating profitability and increased financial risk.

Analyst Insight

Investors should conduct a deeper dive into the composition of 'other income (expense)' and the sustainability of rental revenue growth. Consider holding off on new investments until a clear strategy for improving net income and mitigating investment-related losses is articulated by management.

Financial Highlights

debt To Equity

0.64

revenue

$158.340M

operating Margin

N/A

total Assets

$2.752B

total Debt

$1.079B

net Income

$467K

eps

N/A

gross Margin

N/A

cash Position

$34.541M

revenue Growth

1.3%

Revenue Breakdown

Key Numbers

• $467K — Net income for nine months ended Sep 30, 2025 (Decreased 84.4% from $2.992 million in 2024)
• $158.340M — Total revenues for nine months ended Sep 30, 2025 (Increased from $156.332 million in 2024)
• $137.516M — Rental revenue for nine months ended Sep 30, 2025 (Increased from $133.080 million in 2024)
• $138.514M — Total expenses for nine months ended Sep 30, 2025 (Increased from $136.064 million in 2024)
• $2.752B — Total assets as of Sep 30, 2025 (Increased from $2.597 billion at Dec 31, 2024)
• $1.815B — Investments in real estate, net, as of Sep 30, 2025 (Increased from $1.741 billion at Dec 31, 2024)
• $19.359M — Total other (expense) income for nine months ended Sep 30, 2025 (Negative, compared to negative $17.276 million in 2024)
• $3.654M — Realized and unrealized gain from real estate-related securities for nine months ended Sep 30, 2025 (Decreased from $12.080 million in 2024)

Key Players & Entities

• Nuveen Global Cities REIT, Inc. (company) — Registrant
• Nuveen, LLC (company) — Sponsor of the Company
• Teachers Insurance and Annuity Association of America (company) — Parent company of Nuveen, LLC
• Nuveen Real Estate Global Cities Advisors, LLC (company) — Advisor to the Company
• Securities and Exchange Commission (regulator) — Regulatory body for public offerings
• Nuveen OP (company) — Operating Partnership of the Company
• Nuveen Global Cities REIT LP, LLC (company) — Limited Partner of Nuveen OP

FAQ

Risk Factors

• Decline in Real Estate Security Gains [medium — financial]: Realized and unrealized gains from real estate-related securities decreased significantly to $3.654 million for the nine months ended September 30, 2025, down from $12.080 million in the prior year. This decline contributed to a substantial negative shift in 'Total other (expense) income'.
• Increased Expenses Outpacing Revenue Growth [medium — financial]: Total expenses rose to $138.514 million for the nine months ended September 30, 2025, from $136.064 million in the prior year. This increase, coupled with modest revenue growth, led to a significant drop in net income.
• Interest Rate Sensitivity [medium — market]: As a REIT, the Company's performance is sensitive to interest rate fluctuations, which can impact property valuations, borrowing costs, and investor demand for real estate securities.
• Reliance on External Advisor [low — operational]: The Company is externally managed by Nuveen Real Estate Global Cities Advisors, LLC, an affiliate of its sponsor. Any disruption in this management relationship could impact operations and strategy.
• Leverage and Debt Obligations [medium — financial]: The Company has significant credit facilities and mortgage payables totaling $341.590 million and $237.743 million respectively as of September 30, 2025. Changes in interest rates or market conditions could affect its ability to service this debt.

Industry Context

The REIT sector is highly sensitive to interest rate environments, as rising rates can increase borrowing costs and potentially decrease property valuations. The commercial real estate market is also influenced by economic growth, tenant demand, and supply dynamics. Nuveen Global Cities REIT focuses on stabilized income-oriented commercial real estate in the US and internationally, navigating diverse global market conditions.

Regulatory Implications

As a REIT, the Company must adhere to specific IRS regulations to maintain its tax-advantaged status, including distributing a significant portion of its taxable income to shareholders. Changes in real estate or financial regulations could impact its operations, investment strategies, and reporting requirements.

What Investors Should Do

1. Monitor expense growth relative to revenue
2. Analyze the impact of 'Total other (expense) income'
3. Assess the company's debt structure and interest rate sensitivity
4. Review the performance of international real estate investments

Key Dates

• 2017-05-01: Company Formation — Marks the inception of Nuveen Global Cities REIT, Inc. as a Maryland corporation.
• 2018-01-31: Initial Public Offering Effectiveness — The SEC declared effective the Form S-11 for the Initial Public Offering, allowing the company to raise capital.
• 2021-07-02: Initial Public Offering Termination — The Initial Public Offering concluded, with capital raised up to $5.0 billion.
• 2021-07-02: Follow-on Public Offering Effectiveness — The SEC declared effective the Form S-11 for the Follow-on Public Offering, enabling further capital raises.
• 2024-11-06: Follow-on Public Offering Termination — The Follow-on Public Offering concluded.
• 2024-11-06: Third Public Offering Effectiveness — The SEC declared effective the Form S-11 for the Third Public Offering, including a primary offering and a distribution reinvestment plan.

Glossary

REIT

Real Estate Investment Trust. A company that owns, operates, or finances income-generating real estate. (Nuveen Global Cities REIT, Inc. is structured as a REIT, impacting its tax obligations and investment strategy.)

Operating Partnership

A partnership through which the REIT conducts its business operations and holds its assets. (Substantially all of the Company's business is conducted through Nuveen OP.)

Sponsor

The entity that initiates and supports the formation of the REIT. (Nuveen, LLC is the sponsor of Nuveen Global Cities REIT, Inc.)

Advisor

The entity responsible for managing the REIT's investments and operations. (Nuveen Real Estate Global Cities Advisors, LLC is the external advisor for the Company.)

Accumulated deficit

The cumulative net losses of a company since its inception that have not been offset by net income. (Indicates the company has incurred more losses than profits over its history.)

Non-controlling interest

The portion of equity in a subsidiary that is not attributable to the parent company. (Represents ownership stakes in entities consolidated by the REIT but not wholly owned.)

Year-Over-Year Comparison

Nuveen Global Cities REIT, Inc. reported a significant 84.4% decrease in net income for the nine months ended September 30, 2025, falling to $467 thousand from $2.992 million in the prior year. While total revenues saw a modest increase of 1.3% to $158.340 million, driven by higher rental revenue, total expenses also rose, contributing to the profit decline. A key factor was the substantial negative shift in 'Total other (expense) income,' largely due to a sharp decrease in realized and unrealized gains from real estate-related securities, which fell from $12.080 million to $3.654 million year-over-year.

Filing Documents

• nuveen-20250930.htm (10-Q) — 3144KB
• nreit-2025930xex311.htm (EX-31) — 10KB
• nreit-2025930xex312.htm (EX-31) — 10KB
• nreit-2025930xex321.htm (EX-32) — 6KB
• nuveen-20250930_g1.jpg (GRAPHIC) — 49KB
• nuveen-20250930_g2.jpg (GRAPHIC) — 48KB
• nuveen-20250930_g3.jpg (GRAPHIC) — 41KB
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• nuveen-20250930_g5.jpg (GRAPHIC) — 145KB
• nuveen-20250930_g6.jpg (GRAPHIC) — 193KB
• nuveen-20250930_g7.jpg (GRAPHIC) — 79KB
• nuveen-20250930_g8.jpg (GRAPHIC) — 54KB
• nuveen-20250930_g9.jpg (GRAPHIC) — 50KB
• 0001711799-25-000018.txt ( ) — 18676KB
• nuveen-20250930.xsd (EX-101.SCH) — 116KB
• nuveen-20250930_cal.xml (EX-101.CAL) — 134KB
• nuveen-20250930_def.xml (EX-101.DEF) — 615KB
• nuveen-20250930_lab.xml (EX-101.LAB) — 1035KB
• nuveen-20250930_pre.xml (EX-101.PRE) — 852KB
• nuveen-20250930_htm.xml (XML) — 3260KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets as of September 30, 2025 and December 31 2024 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 4 Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 2024 5 Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2025 and 2024 6 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 8 Notes to the Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 43

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 64

Controls and Procedures

Item 4. Controls and Procedures 65

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 66

Risk Factors

Item 1A. Risk Factors 66

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 66

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 66

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 66

Other Information

Item 5. Other Information 67

Exhibits

Item 6. Exhibits 68 Table of Contents PART 1 — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Nuveen Global Cities REIT, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except share and per-share data) September 30, 2025 December 31, 2024 Assets Investments in real estate, net $ 1,814,896 $ 1,740,714 Investment in commercial mortgage loans, at fair value 356,547 370,172 Investment in real estate debt, at fair value 130,504 103,886 Investments in international affiliated funds 117,180 109,056 Investments in real estate-related securities, at fair value 104,422 103,536 Intangible assets, net 77,320 83,154 Cash and cash equivalents 34,541 22,545 Restricted cash 75,801 33,219 Other assets, net 41,248 30,695 Total assets $ 2,752,459 $ 2,596,977 Liabilities and Equity Credit facility $ 341,590 $ 307,000 Mortgages payable, net 237,743 209,482 Loan participations, at fair value 174,343 172,920 Note payable, at fair value 71,750 71,860 Accounts payable, accrued expenses, and other liabilities 91,722 63,941 Due to affiliates 43,742 45,530 Intangible liabilities, net 32,945 32,695 Subscriptions received in advance 74,883 32,315 Distributions payable 10,048 9,585 Total liabilities 1,078,766 945,328 Redeemable non-controlling interest 318 277 Equity Series A Preferred Stock 125 125 Common stock - Class T shares, $ 0.01 par value per share, 500,000,000 shares authorized, 13,866,587 and 15,604,828 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 140 157 Common stock - Class S shares, $ 0.01 par value per share, 500,000,000 shares authorized, 47,627,085 and 45,353,119 issued and outstanding at September 30, 2025 and December 31, 2024, respectively 478 454 Common stock - Class D shares, $ 0.01 par value per share, 500,000,000 shares authorized, 7,474,056 and 7,201,157 issued and outstanding at September 30, 2025 and December 31, 2024, respectively 75 72 Common stock - Class I shares, $ 0.01 par value per share, 500,000,000 shares authorized, 99,399,249 and 87

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1. Organization and Business Purpose Nuveen Global Cities REIT, Inc. (the "Company") was formed on May 1, 2017 as a Maryland corporation and elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes commencing with its taxable year ending December 31, 2018 and intends to operate in a manner that will allow it to continue to qualify as a REIT. The Company's sponsor is Nuveen, LLC (the "Sponsor"), a wholly owned subsidiary of Teachers Insurance and Annuity Association of America ("TIAA"). The Company is the sole general partner of Nuveen Global Cities REIT OP, LP, a Delaware limited partnership ("Nuveen OP" or the "Operating Partnership"). Nuveen OP has issued a limited partner interest to Nuveen Global Cities REIT LP, LLC (the "Limited Partner"), a wholly owned subsidiary of the Company. The Company was organized to invest primarily in stabilized income-oriented commercial real estate in the United States and a substantial but lesser portion of the Company's portfolio will include real properties located in Canada, Europe and the Asia-Pacific region. Substantially all of the Company's business is conducted through Nuveen OP. The Company and Nuveen OP are externally managed by Nuveen Real Estate Global Cities Advisors, LLC (the "Advisor"), an indirect, wholly owned subsidiary of the Sponsor and an investment advisory affiliate of Nuveen Real Estate ("Nuveen Real Estate"). Pursuant to a Registration Statement on Form S-11 (File No. 333-222231), the Company registered with the Securities and Exchange Commission (the "SEC") its initial public offering of up to $ 5.0 billion in shares of common stock (the "Initial Public Offering"). The Initial Public Offering was initially declared effective on January 31, 2018 and the Initial Public Offering terminated on July 2, 2021. Pursuant to a Registration Statement on Form S-11 (File No. 333-252077), the Company registered w

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