CHICAGO—On Monday morning, at BMO Capital Markets' 10th Annual North American Real Estate Conference in Chicago, the leaders of a few major REITs gathered to discuss the future of these companies, and covered a lot of ground. One thing the panelists seem to agree on was that there are too many REITs.
“There should be consolidation in the business,” said Sandeep Mathrani, chief executive officer of General Growth Properties, adding that there was currently too much choice. However, that does not mean he is against the occasional spin-off. If done in a thoughtful manner, spinning off a REIT “can be a tool to highlight the value in that organization” which otherwise would be hidden if it remained a small part of a big company.
John Kim, a managing director of US REIT Research, BMO Capital Markets, and moderator of the discussion, then asked Debra Cafaro, chairman and chief executive officer of Ventas, whether she thought we would have more or fewer REITs in the next few years.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
