REIT Rankings Best Real Estate Investment Trust Rankings – REIT Rankings
In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, highlighted the REIT market’s outperformance of the broader stock market during 2014. He also suggested that investors pay close attention to supply conditions in 2015.
The FTSE NAREIT All REITs Index had a total return of 27.2 percent for 2014, compared to a return of 13.7 percent for the S&P 500 Index.
Paul Adornato, managing director with BMO Capital Markets, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.
According to Adornato, the big story for REITs during 2014 was their “tremendous performance” compared with the overall market. Although concerns about interest rate increases did impact REITs earlier in the year, REITs “sailed away” once investors determined that those increases were not imminent, he said.
The commercial mortgage backed securities (CMBS) market is expected to end 2014 on solid footing, with loan delinquency rates falling and new issuance likely to surpass last year’s level, according to market observers.
The CMBS delinquency rate fell to 5.8 percent in November, its lowest level in five years, Trepp, LLC reported. As of Dec. 1, delinquencies have fallen 163 basis points, down from 7.4 percent in December 2013, according to Trepp.
Christopher Marr, president and CEO of CubeSmart L.P. (NYSE: CUBE), joined REIT.com for a CEO Spotlight video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.
CubeSmart owns and operates self-storage facilities in the United States and Puerto Rico. At the end of the third quarter, CubeSmart owned 390 facilities with an occupancy level of 91.5 percent.
Jeff Horowitz, global head of real estate, gaming and lodging at Bank of America Merrill Lynch, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.
Horowitz gave an overview of REIT capital market activity in 2014. According to Horowitz, REITs have raised about $ 55 billion this year, comprised of $ 25 billion in equity, $ 2 billion in preferred stock and the remainder in unsecured debt.
John Case, president and CEO of Realty Income Corp. (NYSE: O), joined REIT.com for a CEO Spotlight video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.
Capital flows into the REIT sector from domestic and international investors remain robust, according to a panel of industry figures at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT.
The panelists also said the limited supply of real estate assets is pushing valuations higher.
“Capital is chasing a relatively few number of assets,” said Louis Taylor, senior vice president at Paulson & Co., Inc. “Prices are fair to pretty full.”
High barriers to entry and limited supply are boosting long-term growth prospects for REITs in the cell tower, data center and outdoor advertising sectors, according to a panel at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT.
“Technology is changing the traditional model” of real estate, said panel moderator Jim Sullivan, managing director with Green Street Advisors.
A lack of new supply and a concerted effort by retailers to develop omnichannel shopping strategies bode well for the future of retail REITs, according to a panel at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT.
Ross Smotrich, managing director at Barclays, moderated the panel and noted that new development in the retail sector “may be at a generational low.”
