Green Street Advisors, Inc. :: Transaction Advisory

Green Street also provides guidance on monetizing and hedging strategies so that OP unitholders' investments are protected over the long term. Through hedging, OP unitholders are guaranteed a minimum price for a future period while allowing some upside price participation. Both equity collar and variable prepaid forward hedging structures can be used to lock in a stock price within a predefined range. Once the units are hedged, the holder can borrow against their hedged position at competitive interest rates.

OP Units offer a way to capitalize on real estate at today's historically high prices without triggering taxes. Clients who are selling today may be doing so because they believe real estate is becoming risky. Hedging and monetizing OP units allows investors to diversify the majority of their equity into assets not correlated with real estate. Through hedging, OP Unit holders can enjoy the benefits of lower risk equity growth while maintaining their tax deferral.