67 WALL STREET, New York - June 27, 2014 - The Wall Street Transcript has just published its REITs Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Apartment, Lodging, Self-Storage and Office REITs - Consolidation Activity - REIT Access to Capital - Residential and Commercial REITs - Correlation Between Macroeconomy and Real Estate - Agency Mortgage REITs - Supply and Demand Dynamics - Favorable REIT Fundamentals
Companies include: National Retail Properties, In (NNN), Entertainment Properties Trust (EPR), MFA Financial, Inc. (MFA), Annaly Capital Management, Inc (NLY), Inland Real Estate Corp. (IRC), Anworth Mortgage Asset Corpora (ANH) and many more.
In the following excerpt from the REITs Report, an expert analyst discusses the outlook for the sector for investors:
TWST: Let's start with the triple-net REITs. What's your sentiment on that subsector, and why?
Mr. Altscher: For a long time the triple-net REITs were really not what I would call an invested class for a lot of folks. They were kind of just out on their own; they went unnoticed. Triple-net REITs went under the radar for a very long time. There had been a couple names in the space that had been there for long time, but now the subgroup has expanded substantially.
There has been a meaningful amount of M&A activity, in which names have been acquired by competitors that are getting bigger and bigger. There have been liquidity events, where nontraded REITs in the net lease space have gone public. They have either been acquirers or acquired in some cases. And so the space has been, you could say, brought into focus a lot more by the fact that there has been so much M&A and growth activity.
Normally when you think of triple-net leases you don't really think of growth, considering, as I mentioned before, the cash flows are very predictable and very long-term and very modelable. It isn't really much of a growth sector, per se, but the influx of large players getting bigger in size has really made this a more investable space for a lot of folks. There are obviously more names, there is more market cap, there is a lot more trading volume.
So it's become, I would say, a totally legitimate, investable space where there are probably more names now than there have ever been, and there probably will continue to be more names going forward. From that perspective, this is definitely, I think, an investment class that is here to stay.