NEW YORK CITY-As GlobeSt.com reported earlier this year, non-traditional REITs are on the rise. Now, a white paper from Deloitte tracks their growth and reports that over five-year, 10-year and 20-year periods, new-age trusts outperformed their more traditional brethren.
According to Deloitte real estate leader Bob O'Brien, their popularity is manifold, including “access to capital (especially in the unsecured debt market), higher valuations, a single level of taxation and historically better financial performance than traditional REITs and their C-Corp peers.”
The operating and financial hurdles can be high, he notes. “A REIT conversion is a complex process,” the white paper states, “and requires strategic, financial and operational restructuring to comply with regulations.”
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
