Recently, Marcus & Millichap’s Hessam Nadji appeared on CNBC’s Fast Money to discuss some of the recent trends on REITs. They give a quick insight into what REITs are but also talk about the performance in light of recent economic troubles and his projections into the future. In short, he views that REITs got hit hard during the recession from an over-selloff but have since rebounded and outperformed the S&P 500. He does not expect interest rates to dramatically increase which do have an inverse effect on property values, but if it does he believes it will be coupled with both job growth and some inflation which both provide upward pressure on real estate values. Most notably, he makes reference to Dillard's offering a REIT which had me look elsewere for commentary. In an article by Bloomberg, Marcato Capital Management LLC is urging Dillard's to sell it's corporate real estate to a REIT and perform a lease-back. This shows an interesting scenario if companies like Dillard's that are real estate heavy do sell-off and financing is brought to the public market. Additionally, what happens with underlying assets that have a specific purpose (ie. Dillards being a department store).
http://www.marcusmillichap.com/about-us/news-events/videos/2014/11/20/cnbc-fast-money
http://www.bloomberg.com/news/2014-11-20/marcato-urges-dillard-s-to-spin-off-real-estate-into-reit.html
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