Real Estate Investment Trusts

Cindy Fornelli, executive director at the Center for Audit Quality (CAQ), participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

The CAQ recently held roundtables on the use of non-Generally Accepted Accounting Principles (GAAP) standards to find out what drives companies to use these measures to tell their stories. Participants included stakeholders such as investors, audit committee members, preparers and auditors.

Jim Berry, U.S. real estate and construction leader at Deloitte & Touche LLP, participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

Given recent market volatility, Berry stressed that it’s important to take a historical perspective on REITs and real estate. While REITs may have underperformed compared to the broader market, on a historical basis REITs have had a “pretty good performance.”

“Base fundamentals for most real estate (sectors) are still pretty strong,” Berry said.

Commercial real estate fundamentals are generally healthy, but asset appreciation has clearly slowed, according to a Green Street Advisors webinar April 4.

Andy McCulloch, managing director of real estate analytics at Green Street, noted that “demand for commercial real estate looks okay to pretty good,” with supply deliveries now almost back to their long-term norms. With supply and demand roughly in balance, “on average we’ll see inflationary-type rent growth,” he said.

Tom Wilkin, partner, U.S. REIT leader at PwC, participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

REIT returns rose in March as investors turned their attention to more defensive sectors of the economy, analysts said.

The total returns of the FTSE Nareit All REITs Index rose 3.7 percent in March, while the S&P 500 dropped 2.5 percent. The total returns of the FTSE Nareit Mortgage REIT Index gained 6.5 percent in March.

The yield on the 10-year Treasury note fell 0.1 percent in March.

Mark Roberson, tax controller – REIT tax compliance at Simon Property Group (NYSE: SPG), participated in a video interview at REITwise 2018, Nareit’s Law, Accounting & Finance Conference in Hollywood, Florida.

Daniel LeBey, partner, capital markets and M&A at Vinson & Elkins LLP, participated in a video interview at REITwise 2018, Nareit’s Law, Accounting & Finance Conference in Hollywood, Florida.

LeBey observed that activity in the REIT initial public offering (IPO) market – and capital markets in general – has been slow, mainly due to the interest rate environment.

“We’ve been through this cycle before and history shows that this doesn’t last forever,” LeBey said. “I feel decent about the outlook for the latter part of 2018,” he added.

Michael Gallagher, senior vice president and CAO at Camden Property Trust (NYSE: CPT), participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

Last year, the Securities and Exchange Commission (SEC) approved the Public Company Accounting Oversight Board’s (PCAOB) proposed changes to The Auditor’s Report.