Fundamentally Speaking: Economy Still Gaining Strength

In the latest edition of Fundamentally Speaking, Calvin Schnure, NAREIT’s senior vice president for research and economic analysis, concludes that the United States economy continues to recover despite a mixed bag of recent data.

Schnure pointed out that the big slowdown in fourth quarter gross domestic product (GDP) after six months of increased momentum “is like the recovery we’ve had all along. It’s uneven, but it’s gathering strength.”

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Quick Study: REITs Trail S&P 500 in February

In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, discussed a down month for REITs in relation to long-term real estate market cycles.

The total returns of the FTSE NAREIT All REITs Index dipped approximately 2.6 percent in February, while the S&P 500 gained more than 5.8 percent for the month. For the year, the REIT market is up 2.9 percent, whereas the S&P 500 is up 2.6 percent.

Brad Case

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Green Bonds Popular With Investors, According to REIT Executives

Mark Peternell and Mike Mas of retail REIT Regency Centers (NYSE: REG), joined REIT.com for a video interview at NAREIT’s 2015 Leader in the Light Working Forum in Reston, Va.

Peternell, the company’s vice president of sustainability, said going green can serve as a “competitive differentiator” for REITs. Regency Centers started $ 240 million worth of development and redevelopment projects in 2014.

Mark Peternell and Mike Mas

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Delinquent CMBS Loans Continue to Decline

With mountains of real estate debt coming due in the next three years, borrowers appear to be taking advantage of favorable market conditions to prepay loans tied to commercial mortgage-backed securities (CMBS).

The CMBS delinquency rate, which includes loans that are 30 days or more past due, fell to 5.66 percent in January, compared with 7.25 percent a year earlier, according to commercial real estate consulting firm Trepp LLC. It marked the 18th monthly decline in the past 20 months.

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Parkway’s Sustainability Chief Highlights REIT’s Improved Sustainability Results

Daniele Horton, founder and principal of Verdani Partners and head of sustainability at Parkway Properties, Inc. (NYSE: PKY), joined REIT.com for a video interview at NAREIT’s 2015 Leader in the Light Working Forum in Reston, Va.

Parkway Properties owns and operates office properties located in higher-growth submarkets in the Sun Belt region of the United States. Horton discussed Parkway’s strong improvement in sustainability, as measured by the Global Real Estate Sustainability Benchmark (GRESB) survey.

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Sustainable Infrastructure REIT Focusing on Reducing Carbon Output

Jody Clark, vice president of Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI), joined REIT.com for a video interview at NAREIT’s 2015 Leader in the Light Working Forum in Reston, Va.

Hannon Armstrong makes debt and equity investments in sustainable infrastructure projects. Clark explained that every investment the company makes is focused on the carbon-reduction benefit achieved by its clients. “This is core to our company,” she said.

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