REITs this year raised 23% more capital through May 2017 than in the same period last year, for a total of $19 billion of debt, $16 billion of common equity and $2 billion of preferred equity, according to S&P Global Market Intelligence. It also reported that REITs' Q1 results were generally in line with expectations, but there is a trend of decelerating growth that is expected to continue for the rest of the year.
TPG RE Finance Trust has filed with the Securities and Exchange Commission for an initial public offering that it plans to list on the New York Stock Exchange.
The company originates and acquires floating-rate first mortgage loans secured by high-quality commercial real estate properties undergoing some form of repositioning.
Some investors believe that retail REITs, which have been the worst performers in this asset class, have hit bottom and their shares are now attractive investments. "We believe the stocks have come down to fair value for the risk that we're taking," says Joel Beam, senior portfolio manager at Salient Partners.
Goldman Sachs says Simon Property Group has been beaten down too much and is now priced at an attractive entry point. Simon has a healthy balance sheet, Goldman also noted.
Blackstone Real Estate Partners Europe V is acquiring a majority stake in a UK real estate company called The Office Group. The deal has a value of $630 million.
Texas mall owners are rethinking properties where traffic has slowed, shifting from department stores to restaurants and entertainment venues as anchors. Grapevine Mills in North Texas, which is owned by Simon Property Group, now boasts an aquarium and a Legoland location, and developers are building a mixed-use project on the site of the once-thriving Valley View Center in North Dallas.
A new type of startup is bringing web technology and services such as packing, pickup and delivery of household items to win over new customers for their self-storage businesses. They go to the customer's home, photograph items before packing them, take them to the storage facility and make the photos available online so it is easy to request their return.
Agree Realty Corp. has raised its 2017 acquisition guidance to a range of $250 million to $275 million, from its earlier target of $200 million to $225 million, said CEO Joey Agree. He said the change was due to "a function of the opportunities we are seeing across our acquisition platform."
Global banks will vote this week on an alternative to the London Interbank Offered Rate. "Getting a rate that's supported, that's well built and robust, is very important because they need to move a lot of the swaps market off of Libor," said Darrell Duffie, a Stanford University finance professor.
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