In the latest episode of The REIT Report: NAREIT’s Weekly Podcast, David Auerbach, an institutional REIT trader with Esposito Securities, talked about the latest developments in single-family REITs, the impact of online retail on industrial REITs and how elevating real estate to a headline sector under the Global Industry Classification Standard (GICS) will increase the visibility of REITs.
REITs “Appropriately Valued” Versus Equities and Bonds, Analyst Says
John Guinee, managing director at Stifel Nicolaus, joined REIT.com for a video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
Guinee discussed the valuation of REITs relative to the broader equity and bond markets. According to Guinee, REITs are “appropriately valued right now.”
Guinee noted that REITs have outperformed the broader equity market by 300 to 500 basis points so far this year in a declining interest rate environment.
Portfolio Manager Says Top-Tier Malls “Thriving”
Scott Craig, vice president and portfolio manager at Eaton Vance Management, joined REIT.com for a video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
Craig shared his views on interest rate movements and their likely impact on REIT stocks. He stressed that real estate is a long-duration asset class.
“The forward yield curve today implies that five years from now, the 10-year U.S. Treasury rate will be less than 2.5 percent. That’s a very supportive environment for real estate,” he said.
Self-Storage Consolidation Driven by Scale Benefits, CEO Says
Arlen Nordhagen, chairman, president and CEO of National Storage Affiliates (NYSE: NSA), joined REIT.com for a CEO Spotlight video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
National Storage currently owns 318 self-storage facilities located in 18 states.
Nordhagen said the company’s decision to increase its quarterly dividend by 10 percent reflected strong growth in funds from operation (FFO) per share.
CEO Says e-Commerce a “Friend” to Retail REIT Ramco-Gershenson
Dennis Gershenson, president and CEO of Ramco-Gershenson Properties Trust (NYSE: RPT), joined REIT.com for a CEO Spotlight video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
Ramco-Gershenson owns and manages multi-anchor shopping centers primarily located in about a dozen of the largest metropolitan markets in the United States. The REIT is celebrating its 20th anniversary as a publicly traded company this year.
Devonshire REIT Restructuring Balance Sheet, CEO Says
Michael Carroll, CEO of Devonshire REIT, Inc., joined REIT.com for a CEO Spotlight video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
Devonshire is a private REIT that owns, operates and develops shopping centers in the Midwest, Great Lakes and Southeastern regions of the United States.
Carroll, who was appointed CEO in May, highlighted his priorities for the short and medium terms.
American Assets Trust Says West Coast Fundamentals “Excellent”
Ernest Rady, president and CEO of American Assets Trust, Inc. (NYSE: AAT), joined REIT.com for a CEO Spotlight video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
American Assets Trust owns retail, office and residential properties in high-barrier-to-entry markets primarily in Southern California, Northern California, Oregon, Washington and Hawaii.
Industrial Real Estate Fundamentals “Never Been Better,” First Industrial Says
Bruce Duncan, president and CEO of First Industrial Realty Trust, Inc. (NYSE: FR), joined REIT.com for a CEO Spotlight video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
First Industrial owns and operates industrial real estate for multinational corporations and regional customers in major markets across North America.
Duncan discussed the firm’s current development pipeline and the outlook for leasing.
Real Estate Fundamentals Look Solid, Says REIT Analyst
Paul Adornato, managing director at BMO Capital Markets, joined REIT.com for a video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
Adornato said most real estate sectors are “looking pretty good” for the second half of the year: Although November’s general election is a “wild card,” the economy remains on a slow-growth track, which is positive for REITs.
Hotel REITs Undermined by Weak Business Travel, Green Street Analyst Says
Lukas Hartwich, senior analyst at Green Street Advisors, joined REIT.com for a video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
Hartwich discussed the factors contributing to lagging fundamentals in the lodging sector. The most prominent one, he said, is weakness in business travel and spending. Hartwich pointed out that business travel accounts for about 75 percent of demand for lodging REITs.
