There have been few real estate initial public offerings this year, the notable exception being Postal Realty Trust, which went public in May with a $76.5 million offering. One reason for the dearth of deals this year is the superior pricing visibility that private market valuations deliver as compared with IPOs, according to Justin Salon, a corporate partner and co-chair of Morrison & Foerster LLP.
REIT stocks continue to do well after the Federal Reserve signaled that it will cut rates. Although the signal suggests that the US economy may not be doing as well, which is a negative for REITs, REIT analysts say the combination of strong economic data and the rate cuts will bode well for REIT stocks.
As the need for wireless communications shows no sign of rising, REIT providers of cell towers, such as Crown Castle International, American Tower and SBA Communications have seen their stocks hit record highs this year, rising 20% in the last six months alone. One area of concern for some investors in this space is the slowdown in talks between T-Mobile and Sprint on their merger.
With an aging baby boomer generation, "health care has fantastic tailwinds going for it," says Jeffrey Theiler, CFO of Physicians Realty Trust. Another development, that of health care systems also looking to provide services in ancillary locations, is also beneficial to the REIT, with Theiler saying, "We feel we're at the perfect nexus of those two trends."
Over the past decade, Consolidated-Tomoka Land has been monetizing its large land position in Florida and converting it into triple net properties around the country, according to John Albright, president and CEO. He added that 60% of its land is under contract, with most of it being monetized over the next two years.
Three malls south of Boston have adapted to face competition from Amazon and online shopping in general. Retailers have made way for restaurants, bars and a hospital expansion at Patriot Place, Canton Mall has been re-imagined as a lifestyle center and Walpole Mall cut down on its enclosed space to have front-facing tenants like a health club, restaurants, a wax emporium and a dollar store.
US National Bank Association is the sole bidder for Triangle Town Center's foreclosure auction in Raleigh. The bank offered a bid of close to $120.4 million for the property, which is anchored by Belk, Dillard's, Macy's, Sears and Saks Fifth Avenue.
A 300-unit residential tower has opened at the Westfield UTC mall in San Diego. The luxury building comes on the heels of mall owners adding more restaurants and an office for commercial real estate firm CBRE.
Willow Commons in Willowbrook, Ill., has been sold for $5.8 million. The property, which was 98% leased at the time of the sale, boasts 58,497 square feet of space.
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