Alexi Panagiotakopoulos of Fundamental Income discusses the advantages of having an ETF focused on triple net lease assets in an inflationary environment. With the tenant paying such expenses as taxes and insurance, "going into the investment, the underlying REIT already knows what their return is going to be, and they're not subject to inflationary pressure like rising labor costs," Panagiotakopoulos says.
Investor interest in cell towers and rooftop antenna has grown amid rising demand for connectivity and 5G functionality as well as the steady income these portfolios deliver given their limited risk. In addition, more lenders are now willing to loan against these assets.
A Federal Realty Investment Trust affiliate has sold a Giant-anchored retail center in Leesburg, Va., for $73.5 million. Federal Realty acquired the 235,000-square-foot center in 1998.
Prologis executives indicate it could be some time before industrial supply and demand come into balance and supply chain issues are resolved, according to comments made during the REIT's earnings call. "I'm willing to bet if there were more supply, there would be more absorption and more demand," CEO Hamid Moghadam said, noting that Prologis' development pipeline is 70% pre-leased. Supply chain challenges could last "well beyond" 2022, said CFO Tom Olinger.
CyrusOne is selling its entire Houston portfolio of four data centers in a $670 million transaction, although it will lease back one of the facilities. DataBank is the buyer, and the deal is expected to close late in the first quarter of this year.
Agree Realty bought a building in Royal Oak, Mich., that will be the new headquarters for the REIT. The property measures about 50,000 square feet and is expected to be ready for relocation in the second quarter of next year.
Alexandria Real Estate Equities acquired a retail property in San Diego in a $125 million deal with Regency Centers. The property will become a "vibrant, exciting community center and we're really enthusiastic for the potential of the site," said Alexandria co-Chief Investment Officer Dan Ryan.
The 263,490-square-foot Greenville, S.C., Town N' Country shopping center has been purchased from an undisclosed seller by Owings Mills, Md.-based Greenberg Gibbons for $23 million. The center was 98% leased and is home to Belk, Hobby Lobby, Five Below, Ross Dress for Less, HomeGoods, Ulta Beauty and Staples.
Alexandria Real Estate Equities has acquired eight buildings encompassing 1.3 million square feet of office, laboratory and R&D space within Minuteman Park in Andover, Mass. Atlantic Management and Spear Street Capital are the sellers of the properties.
JBG SMITH has started work on two multifamily towers in the National Landing neighborhood of Northern Virginia that will total 775 apartment units and almost 27,000 square feet of retail. The start of construction on the two properties "is a major milestone in National Landing's ongoing transformation and delivers on our pledge to build new housing in lockstep with Amazon and Virginia Tech's growth in the neighborhood," says Bryan Moll of JBG SMITH.