SAN FRANCISCO-“We have had 20 years with 100 REITs…it is a lab experiment and you can really see what works and what doesn't,” said panelist Mike Kirby, chairman and director of research at Green Street Advisors Inc. Kirby spoke to more than 1200 attendees at NAREIT's REITWorld 2013 Wednesday. His advice for success was to keep things simple.
“It's not rocket science,” he explained. “The CEOs in this industry have a lot to learn from watching what has happened to other people in the industry over the years.” Success boils down to keeping things simple, he explained, and “that's not a bad way to think about a REIT.”
One of the things that has caused the industry to deliver returns that weren't as good as they could be, he said, was excess leverage, and “that was a very painful lesson learned.” The simplier the better is what we are looking for, he said. “No bells, no whistles… You will probably deliver better returns if you don't try to do the fancy stuff.”
Moderating the panel was Ronald Havner Jr., chairman, president and CEO of Public Storage, who focused most of the panel discussion on celebrating the past 20 years of the industry and looking into how to remain successful in the future.
“A lot of people in the early '90s were in the mentality of the 'go public or go broke,'” explained Richard Campo, chairman and CEO of Camden Property Trust, when talking about going public in 1993. While that wasn't the case for Camden, it was more about a growth vehicle. “I looked at it as a way to move out of the partnership world that was a three-year to five-year-hold world.”
He added that only 27% of public companies make it to their 20-year anniversary. “The key to the 20-year anniversary is all about adaptability, not just adapting to market conditions,” he said. “Make sure you change your view of the world and your strategy, and also make sure to become good public company stewards.” In addition, Campo emphasized the importance in company culture. “Adaptability through the times and culture of excellence that understands the game is key.”
Martin "Hap" Stein Jr., chairman and CEO of Regency Centers Corp., said it isn't just about adaptability, it is more about being committed to building a great company. “It is more than an event, it is a journey to the top of the mountain. It is about learning.” Stein Jr. agreed with Campo that “the other key thing is having great people…a team that is committed to being part of building a great company.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
