This year marks the 20th anniversary of Glimcher Realty trading on the New York Stock Exchange as a public REIT. The company’s CEO discussed the significance of this milestone.
Michael Hudgins, real estate strategist with J.P. Morgan Asset Management, joined REIT.com for a video interview during REITWeek 2014: NAREIT’s Investor Forum, held in New York.
Hudgins discussed the growth of the single-family REIT sector.
“Several of these companies have done really well,” he said. “It’s fair to say they’ve surprised to the upside.”
On the opening day of REITWeek 2014, Jonathan Gray, global head of real estate at private-equity firm Blackstone, sat down with Public Storage (NYSE: PSA) chairman and CEO Ronald Havner, Jr. for a wide-ranging discussion of commercial real estate topics. Gray’s remarks covered prospects for different geographic markets and property segments, as well as the overall investment landscape.
Leading up to REITWeek 2014: NAREIT’s Investor Forum, NAREIT was on hand June 2 at the New York Stock Exchange to ring the closing bell. The NYSE recognized 18 REITs celebrating the 20th anniversaries of listing on the exchange. At the end of 1994, the year these companies listed on the NYSE, the equity market capitalization of the FTSE NAREIT All REITs Index was $ 44 billion. Today the index has an equity market capitalization approaching $ 800 billion.
REITs had another solid performance in May as the FTSE NAREIT All REITs Index posted a total return of 2.8 percent, ahead of the 2.4 percent return for the S&P 500 Index.
Year-to-date, the FTSE NAREIT All REITs Index has advanced 14.8 percent, while the S&P 500 Index is 5.0 percent higher.
“It’s another positive month, continuing the upward trend of the year,” noted Jeff Langbaum, REIT analyst for Bloomberg Industries.
Ventas, Inc. (NYSE: VTR) said June 2 it has agreed to purchase American Realty Capital Healthcare Trust, Inc. (NASDAQ: HCT) in a stock and cash transaction valued at $ 2.6 billion.
Under the terms of the agreement, ARC Healthcare shareholders will have the option to receive either 0.1688 Ventas common shares or $ 11.33 in cash for each share of ARC Healthcare stock they own, representing a premium of approximately 14 percent over ARC Healthcare’s closing stock price on May 30.
When President Dwight D. Eisenhower signed the Cigar Excise Tax Extension Act of 1960 into law, the bill authorized REITs in the United States. In the beginning, the industry primarily consisted of companies owning mortgages. Yet, over time, the REIT approach to real estate investment has demonstrated the capacity to evolve to fit the changing demands of the economy at large.