Investors in publicly traded REITs are willing to pay a premium to net asset value because they expect prices for commercial real estate assets to continue increasing, said Jim Sullivan, managing director of Green Street Advisors. Issuance of equity is the most efficient way for REITs to reduce leverage, he said. REITs as a group have made great progress with their deleveraging, but there are individual companies that still have more work to do in that area, Sullivan said. "It's our hope that we'll see more in terms of common equity issuance," he said.
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