Public-Private Market Arbitrage is Unique Advantage for REITs
In a REIT.com interview, Jim Sullivan discusses the unique position of public REITs at the crossroads of the public equity market and the private real estate market. The position allows REITs to take advantage of diverging prices to create value for shareholders.
Mike Kirby Wins Graaskamp Award
Photo Courtesy of Michael Grecco
The James A. Graaskamp award aims to recognize people who, through significant research, contribute practical insights of immediate use to real estate decision makers.
Heard on the Thames: London Resi Fever
Green Street introduces a new product – Heard on the Thames
– that will explore important real estate topics facing the Pan-European region. In this first edition, prime Central London
residential pricing is now well above its prior peak despite a 20% drop in the depths of the global financial crisis. With such appreciation, it is not surprising to see developers increase their activity. Based on our estimates, the UK
companies in our coverage universe have about £3bn of resi development schemes underway or soon to start. The swing to resi makes some sense, but investors should be aware of the potential risks to the current state of resi nirvana.
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Brixmor Property Group (BRX): Romancing the Stone
Brixmor Property Group, the $13 billion strip center behemoth, seeks to raise about $850 million in an initial public offering (IPO). This geographically-diverse strip center portfolio is currently wholly-owned by Blackstone and other partners and would become the second largest REIT in the sector. The IPO will bring in new capital to pay down debt and set the stage for Blackstone’s divestiture of its stake in the company over the next several years. Green Street's retail team has completed extensive tours of the portfolio, met with management, and published an in-depth IPO report.
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Empire State Realty Trust (ESRT) is Second-Largest REIT IPO Ever
Empire State Realty Trust, a $5 billion office REIT concentrated in Manhattan and featuring the world-famous Empire State Building, priced its initial public offering (IPO) at the low end of the proposed range. Michael Knott and the Office team published three reports about the company. The new REIT offers things to like (e.g., lease-up opportunity, improving submarkets, good balance sheet) and ample things not to like (e.g., governance issues, execution risk, and challenges in valuing the ESB and the observatory).
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Listen to Bloomberg Radio interview
REIT M&A: The Triumph of Hope Over Experience
Green Street recently completed a review of more than 50 REIT mergers over the past couple of decades, and found that acquiring REITs typically deliver total returns that lag their peers. Moreover, there is scant evidence of net value creation. View key statistics in Green Street's new REIT M&A Database which is available in the Data Tools section of our website.
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Barron’s Interviews Mike Kirby
Barron's Interviews Green Street Advisors
Michael Grecco for Barron's
Barron's recently talked with Green Street's president, Craig Leupold, and its director of research, Mike Kirby, about REIT valuations, leading stocks, popular exchange-traded funds and the merits of REITs versus private real-estate investments.
Barrons - REITs with the Right Stuff