LAS VEGAS—In our continued coverage on the NAREIT Convention, REIT World 2015, from analysts' perspectives, Canaccord Genuity Inc. reviews the overall sentiment received from its multifamily and retail meetings in the commentary below.
The views expressed are the author's own.
Our retail REIT meetings at this week's NAREIT Convention in Las Vegas were set amid negative headlines from retailers such as Macy's, Nordstrom, and most recently Gap, yet the calm tone emanating from REIT management teams reflects the hard fact that quarterly same-store sales has minimal impact on REIT bottom lines.
Real estate is a longer-horizon business and long-term leases buffer short-term swings in both directions, and with nearly all REITs having executed asset upgrade programs for at least six to seven years, the new found portfolio strength is providing comfort that store closings are increasingly someone else's problem.
Overall, sentiment in the space is mixed and sector-specific, as rate uncertainty continues to fuel concerns over cap rate and operating trends. That being said, most management teams continue to highlight the underlying strength in fundamentals across all property types, which we expect to persist amid a slowly improving economic environment, though it seems clear macro expectations of investors are very mixed.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.