Green Street Advisors

Videos and Interviews

Jan 7, 2019

FlowTracker Helps Explain Disconnect in Public and Private Pricing

Dave Bragg discusses the relationship between public and private market real estate values. While REITs have, on average, traded in line with the underlying value of their assets over the last three decades, they have traded at least 10% above or below NAV about half the time. One explanation is that public pricing often leads private pricing. However, the public market periodically “predicts” changes in pricing that never transpire. The fact that the public and private real estate markets remain surprisingly balkanized results in varying fund flow trends. Green Street’s new FlowTracker product helps investors understand the causes of these variances. Dave also explains why generalist REIT investors are perpetually squeezed into an underweight position.