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REIT returns were modestly higher in April as valuation levels, first quarter earnings reports and mergers and acquisitions (M&A) activity lifted investor sentiment.

The total returns of the FTSE Nareit All REITs Index rose 0.6 percent in April, while the S&P 500 rose 0.4 percent. The total returns of the FTSE Nareit Mortgage REIT Index gained 0.4 percent in April.

The yield on the 10-year Treasury note rose 0.2 percent in April.

Jason Kushner, managing director, capital markets at PNC, participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

Kushner described the current state of the capital markets as “unsettled.” The economy, real estate fundamentals, capitalization rates, institutional interest in real estate and the banking sector are all healthy. On the other hand, rapid technological change, an unprecedented interest rate environment and tax reform changes “have left investors on the edge of their seats,” he said.

Ana Lai, senior director and analytical manager at S&P Global Ratings, participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

According to Lai, the REIT industry still has “fairly good” access to the capital markets, particularly on the debt side. S&P is expecting total debt issuance in 2018 to be flat to slightly below last year’s level, which was very robust, she noted.

Jim Hanks, a partner at Venable LLP, participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

Hanks noted that more than 80 percent of REITs are formed under Maryland law. Some of the benefits of incorporating in Maryland include: the absence of a franchise tax; the ability for directors to increase the authorized stock without a shareholder vote; the ability for directors to reverse-split the stock without a stockholder vote; and, a stable statute concerning the duties of a director.

Ian Kaufman, senior vice president and chief accounting officer of Equity Residential (NYSE: EQR), participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

Kaufman predicted that artificial intelligence (AI) will continue to play an important role for Equity Residential. He noted that the REIT has been using some aspect of AI for more than 10 years, starting with revenue and yield management systems.

Ray Beeman, principal at the Washington Council Ernst & Young practice of Ernst & Young LLP, participated in a video interview at REITwise 2018, Nareit’s Law, Accounting & Finance Conference in Hollywood, Florida.

Nancy Anderson, vice president, financial reporting and CFO at REALpac, participated in a video interview at REITwise 2018, Nareit’s Law, Accounting & Finance Conference in Hollywood, Florida.

Serena Wolfe, partner at EY, participated in a video interview at REITwise 2018, Nareit’s Law, Accounting & Finance Conference in Hollywood, Florida.

Wolfe noted that as Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) convergence projects near completion, REITs are faced with implementing standards relating to revenue recognition, leases and credit impairment.

According to Wolfe, the credit impairment standard will have an impact on how REITs prepare their financial statements.