CoStar Economist High on Prospects for Industrial Sector

Hans Nordby, chief economist with CoStar, joined REIT.com for a video interview during REITWise 2014: NAREIT’s Law, Accounting and Finance Conference held in Boca Raton, Fla.

Nordby was asked for his thoughts on sectors within the REIT industry that he expects to outperform. Of the “four major food groups” in the REIT market, Nordby singled out the industrial sector as the one that looks most promising in the near term.

Hans Nordby

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REIT Returns Outpace Gains in Broader Market During First Quarter

Returns on equity REITs far outpaced gains seen in the broader market during the first quarter of 2014, and analysts expect solid fundamentals to continue to support the sector.

Total returns for the FTSE NAREIT Equity REITs Index gained just under 10 percent in the first quarter, compared with the 1.8 percent gain seen in the S&P 500 Index in the same period. Gains for the FTSE NAREIT All REITs Index stood at 8.6 percent in the first quarter.

REIT returns softened in March compared with the first two months of the year.

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Essex Property Trust Joins S&P 500; Completes Merger with BRE

West Coast multifamily REIT Essex Property Trust, Inc. (NYSE: ESS) joined the S&P 500 Index on April 1, making it the 18th REIT to be included in the index.

Previously, Essex Property Trust was included in the S&P MidCap 400 Index.

Essex Property Trust is the first REIT to be added to the S&P 500 Index this year. Two apartment REITs, General Growth Properties, Inc. (NYSE: GGP) and Macerich (NYSE: MAC), were added last year.

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Community Development Trust Raising Capital to Finance Affordable Housing

John Divers, COO and CFO of the Community Development Trust (CDT), joined REIT.com for a video interview during REITWise 2014: NAREIT’s Law, Accounting and Finance Conference held in Boca Raton, Fla.

Founded in 1998, New York City-based CDT is a private, hybrid REIT that is active on the debt and equity side of affordable housing projects.

Divers was asked about CDT’s capital-raising activities, which were particularly strong last year, and the outlook for future transactions.

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American Realty Capital Healthcare Trust Lists on NASDAQ

American Realty Capital Healthcare Trust, Inc. (NASDAQ: HCT), which was created in 2011 as a public non-listed REIT, began trading April 7 on the NASDAQ Global Select Market.

In early trading on April 7, the share price of ARC Healthcare stock gained about 5 percent. The company also announced a tender offer to purchase up to $ 150 million in common stock from its shareholders.

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Community Development Trust Actively Raising Capital to Finance Affordable Housing

John Divers, COO and CFO of the Community Development Trust (CDT), joined REIT.com for a video interview during REITWise 2014: NAREIT’s Law, Accounting and Finance Conference held in Boca Raton, Fla.

Founded in 1998, New York City-based CDT is a private, hybrid REIT that is active on the debt and equity side of affordable housing projects.

Divers was asked about CDT’s capital-raising activities, which were particularly strong last year, and the outlook for future transactions.

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Sector Focus: Industrial REITs Benefitting from Robust Demand, Limited Supply

Robust demand for space, fueled by improving economic fundamentals and limited supply, is expected to bolster the industrial REIT sector for the rest of 2014, according to analysts.

So far in 2014, the sector has continued to outperform the broader REIT market. Total returns for industrial REITs gained 7.4 percent last year, compared with a 2.9 percent gain for all equity REITs. As of March 24, total returns for industrial REITs were up 9.4 percent for the year, versus a 6.8 percent gain for all equity REITs.

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