Real Capital Analytics Inc.'s offers a national and regional core-property annual summary. Now is the time to hop back into the REIT market, according to its analysis. The group found REITs raised more than $2 billion of equity in 28 secondary offerings this year, already half the total capital raised in 2001 and more capital than was raised in either 1999 or 2000.
"Now that the window has opened again and many REITs are issuing more common stock, there is strong potential for another wave of buying by the REITs," Robert White, President of Real Capital Analytics Inc. tells GlobeSt.com. "Portfolio and M&A activity is especially brisk, an indicator that some REITs are not wasting time bulking up."
The firm also found private local investors bought $10 billion more in real estate assets than they sold last year. This trend is attributed to core real estate return rate, which currently stands at the highest on record, coupled with near-historic interest rate and inflation lows. If these conditions hold, Real Capital predicts all boats to rise as other capital sectors follow the investment pattern.
"Real Returns of real estate (after factoring out interest rates and inflation) are at an all time high--the rest of the world is just catching on now," says White.
In the second report, Lend Lease Real Estate marked impressive CMBS performance over the past year. The investment sector outperformed the corporate bond market, particularly on a risk-adjusted basis. CMBS is predicted to continue to perform well through 2002.
Additional findings by the group include:
- Same store sales rose 4.2% versus 2000
- Unemployment fell to 5.6%
- US Purchasers' Manufacturing index rose to 49.9
- The manufacturing index finally rose, following a 1.5 year slump and employment decline
Lend Lease Real Estate Investments characterizes itself as a real estate investment manager and U.S. real estate advisor to pension funds. The company is a subsidiary of Australian-based Lend Lease Corporation, an integrated real estate funds management and services business.
Real Capital Analytics Inc. is a national research and consulting firm based in New York City.
Periodically, GlobeSt.com releases both national and regional market reports from leading industry analysts. They can be found at GlobeSt.com's Market Data Pages.
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