REITTalk
Recent Episodes:
Understanding The IPO, Preferred and Commons Market
Jay Leupp, ceo, Grubb & Ellis Alesco Global Advisors, LLC
Recorded: July 28, 2010
Guest: Jay Leupp, ceo, Grubb & Ellis Alesco Global Advisors; Host: Joanna Randell, editor, REIT Cafe
 Jay Leupp is president and ceo at Grubb & Ellis Alesco Global Advisors. He manages three funds, two U.S. based and one global. Prior to founding Alesco, Jay was a managing director of real estate equity research at RBC Capital Markets from 2002 to 2006. Prior to joining RBC Jay held positions with Robertson Stephens & Co. inc, and the Staubach Company. Jay has a bachelor's degree from Santa Clara University and an MBA from Harvard University.
In this epsiode of REIT Talk Jay shares his insights on the IPO market and the attractive investment opportunities for investors.
- Is preferred attracting more interest than common shares?
- Methodology for investing in preferreds or commons.
- Share levels and REITs Jay likes.
- Impact of stock dilution.
- Determining factors of a successful IPO
- Motivation to go public--is it just the access to capital?
- Current market movements and the picture it draws of the economy.
Maintaining Liquidity Through Unsecured Credit
Steven Marks and Linda Hammel, Fitch Ratings
Recorded: July 21, 2010
Guest: Steven Marks, head of U.S. REITs, Linda Hammel, director, Fitch Ratings; Host: Joanna Randell, editor, REIT Cafe
Steven Marks, head of U.S. REITs at Fitch Ratings, is a frequent guest on REIT Talk discussing liquidity and market movements in the REIT sector. In this episode of REIT Talk he is joined by Linda Hammel, director at Fitch, as they discuss the findings of their recent report analyzing the terms REITs are seeing when obtaining unsecured debt. Linda has been with Fitch for nine years in the role as director of the CMBS group and in the Latin financial institutions group.
- The different strategies REITs gave taken to maintain liquidity
- Were the key trends in credit renewals a surprise?
- Changes in terms for credit lines by property sector, REIT size and characteristics
- The uses of unsecured credit lines
- Reflecting the fees of unsecured credit in the REIT's financial statements
- The impact of an interest rate hike
- Transitioning credit from secured to unsecured
- The impact on investment grade ratings and appeal to investors
- Credit renewals trend beyond 2010
The complete report can be accessed here: Trends in Renewal
Spotting Opportunities And Avoiding Pitfalls: An Investors Guide
Greg Genovese, ceo, Pacific Valley Realty Capital, LLC
Recorded: July 14, 2010
Guest: Greg Genovese, ceo, Pacific Valley Realty Capital; Host: Joanna Randell, editor, REIT Cafe
 Greg Genovese is the ceo and president at Pacific Valley Realty Capital, LLC, a real estate advisory firm based in California. Greg has over twenty years of experience in the financial services industry, working for some of the country's most recognized financial and real estate securities firms including Wells REIT and Thompson National Properties.
In this episode of REIT Talk Greg discusses the real estate securities industry and where investors should be placing their wallets.
- The pace of the recovery versus the severity of the downturn.
- Will there be a double dip? If so, what will be the catalyst?
- Views on Government intervention
- Has the financial crisis created any investment opportunities or structures?
- Where investors should put their money.
- Investment strategies for a recovering market
- Will the levels of distress ever be fully recognized?
- Is the recovery of publicly traded REITs sustainable?
Private vs. Public: What Do Investors Need To Know?
Nicholas Schorsch, chairman and ceo, American Realty Capital
Recorded: July 07, 2010
Guest: Nicholas Schorsch, ceo, American Realty Capital; Host: Joanna Randell, editor, REIT Cafe
 Nicholas Schorsch is the chairman and ceo of American Realty Capital. He founded American Financial Realty Trust, a publicly traded REIT that invested in officers, operation centers, bank branches and similar real estate, at which he served as president, ceo and vice chairman. Nick has executed in excess of 1,000 acquisitions with a transactional value of approximately $5 billion. In 2003 he received the Entrepreneur of the Year award from Ernst & Young and was a NAREIT board member from 2005-2006.
In this episode of REIT Talk Nick discusses similarities and differences between the public and private side of the REIT industry.
- Is it as black and white as public vs. private or is it shades of grey?
- Factors under consideration when drawing up real estate mandates
- Who can best take advantage of current opportunities?
- Dividend differences and coverage issues.
- New REIT structures and sponsors
- Ditching the internalization fee: What other fees could be on the chopping block?
- Real estate expertise transitioning from public to private--is it easy?
Motivation and Strategy For New Development
Timothy Naughton, president, AvalonBay Communities
Recorded: June 30, 2010
Guest: Timothy Naughton, president, AvalonBay Communities; Host: Joanna Randell, editor, REIT Cafe
Timothy Naughton is the president and director of AvalonBay Communities, Inc, joining the firm in 1989. He has held various positions with the multifamily REIT including coo, cio and regional vice president of acquisitions. In these roles he has been responsible for performance, coordination of development, construction, acquisitions, dispositions and property operations. He is a member of the Real Estate Round Table, the Multifamily Council of the Urban Land Institute and the National Multi-Housing Council where he serves on the executive committee. Tim received his Masters Degree in business and administration from Harvard Business School and undergraduate degree in Economics from the University of Virginia.
In this episode of REIT Talk, Tim discusses the motivation behind AvalonBay's return to development, the returns expected and what is driving the demand.
- Ceasing development during the downturn--which projects were put on hold?
- Multi-housing in the supply and demand equilibrium
- Five outlook for new developments
- Combating the lower rental market in New York and beyond.
- Selling off underperfoming assets and attracting capital
- AvalonBay compared to sector performance
- Pin pointing the position in market recovery, should we expect a double dip?
- Positioning the REIT for future growth
The Drivers and Outlook for Student Housing
William Bayless, ceo, American Campus Communities
Recorded: June 23, 2010
Guest: William Bayless, ceo, American Campus Communities; Host: Joanna Randell, editor, REIT Cafe
 William Bayless is ceo and co-founder of American Campus Communities. Founded in 1993, Bill has also held the position of coo and vice president of development at ACC. Prior to forming ACC, Bill has held positions with Century Development's student housing division and with Cardinal Industries.
In this episode of REIT Talk, Bill discusses the different cycles and challenges of student housing, acquisition parameters and tailoring to a mobile demographic.
- The changing student housing landscape and mission of ACC
- Comparing apartment REITs to student housing REITs
- ACC's role in the property development and management
- Meeting the demands of the echo boomers and establishing a competitive edge
- Impact of the demographics on the business model and quarterly earnings
- Projected occupancy rates
- Current and future acquisition and joint venture opportunities
- Growing ACC post credit-crunch
Health Care Sector Update
A Conversation With Frank Spencer, Cogdell Spencer
Recorded: June 16, 2010
Guest: Frank Spencer, ceo, Cogdell Spencer; Host: Joanna Randell, editor, REIT Cafe
 Frank Spencer is president and ceo at Cogdell Spencer, Inc, joining the REIT in 1996. Under Frank's tenure Cogdell Spencer made the successful acquisition of Marshall Erdman & Associates, forming Cogdell Spencer ERDMAN. Prior to joining CSA, Frank has held positions with the Crosland Group and non-profit, The Children's Services Network. Frank has published articles in numerous trade journals and has taught at Montreat College. He sits on the board of advisors for the University of North Carolina Real Estate Program and is a member of the Urban Land Institute. Frank was instrumental in establishing McCreesh Place, a permanent residence for 64 formerly homeless men in Mecklenburg County, North Carolina. He has also been involved in Habitat for Humanity.
In this episode of REIT Talk Frank discusses the how the health care sector has withstood the down market compared to other sectors and how the REIT is being positioned for growth.
- Evaluating and meeting any new demands caused by the Healthcare Reform Act
- Cogdell Spencer's competitive edge over other health care property companies.
- Adjusting the business model post credit crunch
- Are REIT in a value bubble?
- CSA's development and redevelopment pipeline
- The investor base of the healthcare sector
Catching Up With NAREIT
A Conversation with Brad Case
Recorded: June 15, 2010
Guest: Brad Case, vice president, research and industry information; Host: Joanna Randell, editor, REIT Cafe
 Brad Case is vice president of research and industry information at NAREIT. He has a Ph.D in economics with a specialization in commercial real estate investment. Brad previously held the position of economist for the Federal Reserve Board. REIT Cafe caught up with Brad at NAREIT's REIT Week investor conference to discuss the case for increasing pension fund investments in REITs and where we are in the recovery cycle.
- The factors impeding full real estate recovery
- Where are we in the recovery cycle?
- The drag effect of 'pretend and extend' and how the industry will move past this
- Competing with direct real estate investors for class A properties. What edge do REITs have?
- Updating investor mandates: Can the industry handle increased allocations?
- Understanding and working with REIT volatility
- The challenges REITs will be facing next year
REITs Upgraded To Stable
Catching Up With Steven Marks At NAREIT
Recorded: June 14, 2010
Guest: Steven Marks, managing director, head of U.S. REITs, Fitch Ratings; Host: Joanna Randell, editor, REIT Cafe
 Steven Marks is the head of U.S. REITs for Fitch Ratings. In this episode of REIT Talk Steven discusses Fitch's recent REIT upgrade from negative to stable, the outlook and challenges of the industry and how the REIT industry is adapting to the new environment.
- The REITs on the road to recovery--where are they and are they on schedule?
- The return of pricing before fundamentals
- Leverage: Friend or foe?
- Sector outlook and returning of stability
- Will the ambitious IPO market continue? The landscape for future equity offerings
- The M&A outlook: Will it be REIT on REIT?
- Obstacles facing the REIT industry
Fitch Rating's recent report can be downloaded here
The Panoramic View of Commercial Real Estate
Yaacov Gross, partner, Morrison Foerster
Recorded: June 03, 2010
Guest: Yaacov Gross, partner, Morrison Foerster; Host: Joanna Randell, editor, REIT Cafe
 Yaacov Gross is the head of Morrison Foerster's real estate securities practice group, focusing on all aspects of corporate finance. He works extensively with REITs and other real estate entities including lodging and gaming companies and institutional investors in real estate. Yaacov advises boards of directors with respect to corporate governance, reporting and disclosure, special committee assignments, accounting irregularities and financial fraud. Yaacov is a member of the America, New York State and Israel Bar Associations. In this episode of REIT Talk, Yaacov discusses the panoramic view of commercial real estate.
- Current market transactions and property types: Who is bidding?
- The theme for commercial real estate in 2010
- Will we see a train wreck of distress?
- In a bidding war, who has the competitive edge, public or private buyers?
- Events on the horizon impacting commercial real estate recovery
- Should institutional investors be investing in private or public markets?
- IPOs of 2010: Many filed, few succeeded
- Are there any permanent lessons from the real estate downturn?
Investing in Value-Add Properties with Acadia Realty
Ken Bernstein, ceo, Acadia Realty Trust
Recorded: May 26, 2010
Guest: Ken Bernstein, ceo, Acadia Realty Trust; Host: Joanna Randell, editor, REIT Cafe
Ken Bernstein became the ceo of Acadia Realty in 2001, he has been president and trustee since August 1998. Ken is responsible for the day-to-day activities of Acadia including acquisitions and operations. Prior to joining Acadia, Ken was the coo for RD Capital, Inc. Prior to this he was an associate at Battle Fowler, LLP law firm. Ken serves on the board of directors for BRT Realty Trust, is a member of the National Association of Corporate Directors, International Council of Shopping Centers and sites on the board of governors for NAREIT. In this episode of REIT Talk, Ken discusses Acadia's strategy for investing in value-add properties.
- Property types and strategy of Acadia
- Determining value of lesser properties
- Sourcing value-add properties and determining rate of return
- Geographical targets for retail space
- Updating balance sheet post credit crunch
- Five year outlook for Acadia and asset size estimation
- Positioning for a recovery
- Establishing a position in the new REIT landscape
Outlook and Challenges of the retail sector
John Kite, ceo, Kite Realty Group
Recorded: May 20, 2010
Guest: John Kite, ceo, Kite Realty Group; Host: Joanna Randell, editor, REIT Cafe
 John Kite is the ceo and chairman at Kite Realty Group, responsible for the strategic direction and operating results of the company and he is the head of Kite's capital allocation committee. Prior to joining Kite, John held several senior positions with Kite's affiliate, The Kite Companies.
In this episode of REIT Talk, John discusses the challenges facing retail REITs over the coming months and increasing opportunities for new developments.
- Facing the current challenges of the retail sector.
- Signs of recovery in retail
- The retail supply and demand: When should new developments start?
- Handling bankruptcies in tenants
- Altering the balance sheet post financial crisis
- Establishing Kite in the future REIT landscape.
Emerging Trends from Q1 2010
Paul Adornato, BMO Capital Markets
Recorded: May 12, 2010
Guest: Paul Adornato, senior analyst, BMO Capital Markets; Host: Joanna Randell, editor, REIT Cafe
Paul Adornato is a senior analyst at BMO Capital Markets. In this episode, Paul joins REIT Cafe once again to share his insight into current REIT industry trends and which REITs and sectors are looking strong for the remainder of the year.
Balance Sheet Management and Leverage Metrics
Michael Pappagallo, coo & cfo, Kimco Realty Corporation
Recorded: May 05, 2010
Guest: Michael Pappagallo, cfo & coo, Kimco Realty; Host: Joanna Randell, editor, REIT Cafe
Michael Pappagallo was recently appointed coo at Kimco Realty in addition to the cfo position he has held since 1997. In these two roles, Michael is responsible for the day-to-day activities and financial activities of the REIT. Prior to joining Kimco, Michael was cfo for GE Capital's commercial financing business and also held positions in the audit group at KPMG, LLP. Michael is a member of the American Institute of Certified Public Accountants.
In this episode of REIT Talk, Michael explains good balance sheet management, how standards are shifting in a new financial era and recommended leverage levels and metrics.
- Changing attitudes towards balance sheet management and leverage
- The debt/equity mix on Kimco's balance sheet and raising capital
- Managing assets and liabilities
- Should there be greater regulation on REITs balance sheets?
- Changing risk appetite and expectations of investors
- Managing risk in a REIT portfolio
- Is leverage destructive?
- The evolving metrics for leverage
- Will excess leverage emerge again?
Getting Serious About Building Materials
Kevin Surace, ceo, Serious Materials
Recorded: April 29, 2010
Guest: Kevin Surace, ceo, Serious Materials; Host: Joanna Randell, editor, REIT Cafe
 Kevin Surace is ceo at Serious Materials, leading the company in its mission to reduce energy usage and CO2 emissions from commercial real estate properties. Serious Materials develops new processes and technologies to improve insulation and the comfort of homes and office. Prior to joining Serious Materials, Kevin held positions with Perfect Commerce, General Magic, Air Communications, National Semiconductor and Seiko-Epson. Kevin sits on the board of trustees for the Rochester Institute of Technology, serves on the board of Array Converter and Arch Rock. Kevin was also named 2009 Entrepreneur of the Year by Inc. Magazine. In this interview Kevin discusses the various sustainable materials available, the cost involved in building to reduce emissions and how he and his team are tackling the retrofit of the Empire State Building.
- Creating new products to improve insulation
- Cost of sustainable products vs. non-sustainable
- What is driving the demand?
- Time frame for a 'green' construction
- Working with the American Recovery and Reinvestment Act
- Tenants driving the retrofit demand
- Making the Empire State Building 'green'
Case Study: Sustainability At AMB Properties
Aaron Binkley and Steven Campbell
Recorded: April 27, 2010
Guest: Aaron Binkley, director, sustainability programs, Steven Campbell, svp, director of environmental and developmental services; Host: Joanna Randell, editor, REIT Cafe
Aaron Binkley is the director of sustainability programs for AMB Property Corporation. He is an expert on LEED certification, energy efficiency and environmental sustainability. Aaron is an appointee to the 2009 NAIOP Sustainable Development Committee and a member of the Real Estate Roundtable's Sustainability Policy Advisory Committee. Prior to joining AMB, Aaron was engineered the renovation of one the oldest buildings in the U.S. to achieve LEED certification.
Aaron is joined by Steven Campbell. Steven is a senior vice president, director of environmental and development services for AMB, responsible for the engineering, environmental and development services programs. Steven has extensive experience in developing distribution facilities in Asia. Prior to joining AMB in 1998, Steven was a vice president at Versar.
In this interview, Aaron and Steven discuss AMB's sustainability programs, challenges of 'greening' the distribution chain and developing reporting processes.
- Increasing energy efficiency in the distribution sector
- Converting older properties into useful office space
- Developing sustainable distribution centers in Japan
- Introducing corporate responsibility reporting, deciding the metrics and analyzing results
- Quantifying costs and benefits through reporting
- Engaging tenants in sustainability
- Balancing the drive towards sustainability with good economics
AMB Property Case Sudies:
Amagaski--Osaka, Japan
Fokker--Amsterdam, The Netherlands
TriPoint--San Jose, California
Kasugi--Nagoya, Japan
Pier 1--San Francisco, California
Case Study: Sustainability At Regency Centers
Mark Peternell, vice president, Sustainability
Recorded: April 22, 2010
Guest: Mark Peternell, vice president, sustainability, Regency Centers; Host: Joanna Randell, editor, REIT Cafe
Mark Peternell is vice president of sustainability at Regency Centers. He is responsible for designing and implementing Regency's sustainability and 'green' initiatives. Prior to this position, he worked for Forest City Enterprises. Mark is a member of the United States Green Building Council's LEED for Retail Committee, International Council of Shopping Center's Environmental Sub-Committee and the Real Estate Roundtable's Sustainability Policy Advisory Committee. In this episode of REIT Talk, Mark walks us through Regency's commitment to sustainability and the current rate of return.
- Driving force behind Regency's 'green' mission and reaction from investors
- Achieving LEED standards
- Irrigation systems to reduce water usage
- Tenant reaction to sustainability and competitive advantages
- Which areas of America are easier to green?
- Five year goal for sustainability
- Balancing the challenges of 2009 with the sustainability program
- Quantifying green initiatives
REITs CEO Healthcare Rountable
Focus on Reform
Recorded: April 20, 2010
Guest: David Emery, ceo, Healthcare Realty, Doug Pasquale, ceo, Nationwide Health Properties, Frank Spencer, Cogdell Spencer; Host: Richard Anderson, analyst, BMO Capital Markets
In this roundtable discussion, hosted by Richard Anderson, analyst at BMO Capital Markets, David Emery, ceo, Healthcare Realty, Doug Pasquale, ceo, Nationwide Health Properties and Frank Spencer, ceo, Cogdell Spencer discuss the healthcare reform act and impact, if any, on medical office buildings, out patient facilities, senior living and other medical related properties.
Sustainability at Vornado Realty Trust
Sukanya Paciorek, program director, Vornado Realty Trust
Recorded: April 19, 2010
Guest: Sukanya Pacirorek, energy and sustainabilty program director, Vornado Realty Trust; Host: Joanna Randell, editor, REIT Cafe
Sukanya Paciorek joined Vornado Realty Trust in September 2008 as program director for energy and sustainability. Prior to this she was with with Poten & Partners and before that, was a political advisor for the United States Mission to the United Nations. In this REIT Talk episode, Sukanya discusses Vornado's 'green' strategy, alternative energy generators and how conversations with employees, tenants and customers can help drive new legislation.
- Driving force behind Vornado's green mission
- Achieving LEED or higher on properties
- Benchmarking properties against EPA standard
- Reducing energy use in office buildings through installing cogens.
- Exploring solar energy
- Investing in tenant energy use education
- Educating from the ground up on sustainability
- Updating legislation
- Cost/benefit of sustainability
Examining Sustainability in Asia
Richie Lee, executive director, energy and sustainability, CB Richard Ellis
Recorded: April 15, 2010
Guest: Richie Lee, executive director, energy and sustainability, Asia, CB Richard Ellis; Host: Joanna Randell, editor, REIT Cafe
Richie Lee is the executive director of energy and sustainability for Asia at CB Richard Ellis. He has also held the position of regional director for Schneider Electric for S.E. Asia. Richie earned his PhD in technology management from the University of Cambridge. In this episode, Richie discusses the unique sustainability landscape of Asia and how the challenges are being met with local policies and regulations.
- Implementing LEED at CB Richard Ellis
- Reducing emissions in China
- Hong Kong Green Building Plan
- Encouraging sustainability by discounting materials
- CBRE's carbon neutral goals
- Sustainability in Asia publication
CB Richard Ellis's Sustinability in Asia publication can be accessed here
Sustainability At Liberty International
Alexander Nicoll discusses reporting and external scrutiny
Recorded: April 13, 2010
Guest: Alexander Nicoll, director, corporate social responsibility; Host: Joanna Randell, editor, REIT Cafe
Alexander Nicoll joined Liberty International in 2007 as director of corporate social responsibility. Prior to this position he was the head of internal communications for the Church of England, a role which gave him exposure to historical properties and subsequent retrofitting issues. In this interview as part of the Corporate Responsibility Series, Alexander discusses how Liberty International has become known for its 'green' behaviour to be included in the Times top 50 green companies, the FTSE4Good Index, the Dow Jones Sustainability Index and the South African SRI Index.
- Incorporating a green strategy into the business model
- Barrier of entry for sustainability indexes
- New business opportunities created by sustainability accolades
- Refining the corporate reporting process and working with external metrics
- Employee-community engagement programs
- Sustainability after Liberty's de-merger. What will be the focus?
The Sustainability Movement In Asia and Australia
Tim Hannon, chair, sustainability committee, APREA
Recorded: April 13, 2010
Guest: Tim Hannon, chair, sustainability committee, APREA; Host: Joanna Randell, editor, REIT Cafe
 Tim Hannon is chair of APREA's sustainability committee and cio at Evergreen Capital Partners. Prior to Evergreen, Tim has held the positions of head of real estate for Asia and Australia and head of Australian equities at Goldman Sachs. He has also been awarded Morningstar's fund property manager of the year award. As part of the Corporate Responsibility Series, Tim discusses APREA's sustainability mission, the 'green' movement in Australia and the benefit to the bottom line.
- The main achievements in APREA's sustainability movement
- Tackling the myths of sustianability
- Balancing sustainable strategies and reducing operating costs
- Australia's position in the sustainability sector
- Integrating ESG into everyday investment activities
Understanding Tax Implications of Debt Liability Management
Thomas Humphreys, partner, Morrison Foerster
Recorded: April 08, 2010
Guest: Thomas Humphreys, partner, Morrison Foerster; Host: Joanna Randell, editor, REIT Cafe
 Thomas Humphreys is head of the global Federal Tax Practice group at Morrison Foerster. His has extensive experience with the tax aspects of capital markets, financial instruments, REITs, mutual funds and other transactions. He is the author of Limited Liability Companies and Limited Liability Partnerships and a frequent speaker at industry conferences. Thomas is also an adjunct professor at New York University Law School. In this episode, Thomas follows up Anna Pinedo's earlier discussion of REIT debt liability management tools be exploring the tax implications and legislative updates for the various management devices availability with a specific focus on the impact for the REIT industry.
- The tax structure for repurchases, exchanges and modifications
- Legislative update for cancelled out indebtedness
- Issuer and investor tax considerations
- Applicable high yield discount obligation explained
- Tax considerations for U.S. and non U.S. investors.
Practical Sustainable Strategies and Initiatives
From the Urban Land Institute
Recorded: April 06, 2010
Guest: Richard Kessler, chair, Urban Land Institute, New York; Host, Joanna Randell, editor, REIT Cafe
 Richard Kessler became chair of the Urban Land Institute, New York on January 1st, 2010. He has over 30 years of real estate experience including acquisition, disposition, development, leasing and management and capital market knowledge. Richard is also the coo for Benenson Capital Partners, LLC.
- Mission statement of the ULI
- The progress of 'greening' New York
- Sustainability in small and big cities
- Increasing sustainablility through retrofits
- How REITs can improve their corporate citizenship strategies
Introducing Corporate Responsibility
Integrating CSR into a business model and setting standards
Recorded: April 01, 2010
Guest: Charles Hazen, ceo, Hines REIT and Hines Global REIT; Host: Joanna Randell, editor, REIT Cafe
 Charles Hazen is senior vice president at Hines and ceo for Hines REIT and Hines Global REIT. Charles joined the firm in 1989 and during his tenure, he has contributed to the development, management and financing of more than 10 million square feet of property, valued at more than $2 billion.
In this first interview of the Corporate Responsibility Series, Charles introduces the topic, exploring how sustainability and responsibility has become a main stream concern for commercial real estate and explains the LEED and Energy Star benchmarks.
- How corporate responsibility has transitioned from 'green is good' to corporate mandate.
- From the '60's onwards--how sustainability has been integrated into Hines' DNA
- Industry participation in sustainability initiatives
- Drivers behind the CSR sector
- Comparing returns: sustainability agendas vs. non sustainability agendas
- Essential standards for commercial real estate developers and how they evolve
- Greatest achievements and biggest disappointments of the sector to date
What Should REIT Professionals Be Watching?
Recovery, performance and opportunities
Recorded: March 30, 2010
Guest: Michael Hudgins, global REIT strategist, JP Morgan; Host Joanna Randell, editor, REIT Cafe
Michael Hudgins is a vice president and global REIT strategist at JP Morgan Asset Management. Michael has over 16 years of experience in the real estate industry and has previously held positions at Stifel Nicolaus and Property & Portfolio Research. He also received the Mueller Award for his thesis 'Characterising the Performance, Behaviour and Role of the J-REIT Market." In this episode of REIT Talk, Michael shares his insight on the real estate recovery, REIT investment behaviour and the role of Government intervention.
- JP Morgan's state of the union
- Will REITs benefit from price discovery? How is the industry positioned?
- REITs outperforming the S&P 500, was it a surprise? Will they do it again?
- CMBS pressure on values
- The impact of Government intervention
- The potential for a significant dividend jump
- Attracting retail money
- Downside risks of 2010
- Is China the next shoe to drop?
REIT Debt Liability Management
The importance of exchange offers and debt repurchases
Recorded: March 24, 2010
Guest: Anna Pinedo, partner, Morrison Foerster; Host: Joanna Randell, editor, REIT Cafe
 Anna Pinedo is one of the U.S's leading derivatives lawyer. She has been included in various Best Lawyers lists and has twice won the Burton Award for her excellence in legal writing. As partner at Morrison Foerster, Anna focuses on the securities and derivatives industry and has represented an array of financial institutions. In this episode of REIT Talk, Anna discusses the available liability management tools available for REITs.
- How REITs have updated their liability management techniques post financial crisis.
- The challenges of maturing REIT debt.
- Raising short-term and long-term capital.
- The benefits and drawbacks of exchange offers and debt repurchases.
- Tender offers--cash and non-cash--and understanding the better strategy for your balance sheet.
- Ramifications of 'mixing and matching' the debt liability tools.
Examining Foreign REIT Markets
Where are the opportunities? What are the barriers of entry?
Recorded: March 17, 2010
Guest: Jeffrey Rogers, coo and president, Integra Realty Resources; Host: Joanna Randell, editor, REIT Cafe
 Jeffrey Rogers is the coo and president of Integra Realty Resources, the largest commerical real estate valuation and counselling firm in the U.S. Before joining Integra, Jeffrey was in a senior management positioned at retail services firm, ReturnBuy, Inc, leading the company through private equity and debt funding. He also held positions at Deutsche Banc Alex Brown and NationsBanc Montgomery Securities, LLC.
In this episode of REIT Talk, Jeffrey discusses the opportunities in Asian REIT markets, barriers of entry for non-U.S. investors and amendments to the FIRPTA regulation.
- Investing in the U.S. Which property types?
- Foreign investors expected returns.
- Seeking foreign capital--is now the best time?
- Update to the FIRPTA regulation and the cost of an amendment
- Opportunities in foreign markets
- Is China in a property bubble?
- Decoupling between the U.S. and the global economy
- Getting to know the neighbours: American JVs with Canada
How Are Real Estate Investors Changing The Game Plan?
Transactions, Valuations and Capital Deployment Strategies
Recorded: March 10, 2010
Guest: David Lynn, managing director, ING Clarion; Host: Joanna Randell, editor, REIT Cafe
 Dr. David Lynn is a managing director of research and investment strategy at ING Clarion. He and his team are responsible for providing market intelligence, product identification and portfolio management to the firm. David has over 20 years of experience in a broad spectrum of real estate property types. On this episode of REIT Talk, David discusses how real estate investment companies are updating their game plan in light of fewer than expected distressed opportunities.
- Determining value post bubble: What are the benchmarks?
- More capital chasing fewer opportunities, who has the advantage?
- The distinction between 'stressed' and 'distressed' properties
- How are the transactions in this cycle comparing with previous cycles?
- Positioning firms to remain competitive
- Pricing: Similar to 2007? or the last down cycle?
- Distress will arrive to market, but when?
- Examining the discounts seen so far
- Deploying capital away from investments and into new developments
The Drivers Behind Social and Public Infrastructure Investing
Generating returns by investing in public properties
Recorded: March 02, 2010
Guest: Charles Jones, ceo, Inland Public Properties, Development; Host: Joanna Randell, editor, REIT Cafe
 Charles Jones is the ceo of Inland Public Properties Development, Inc. At Inland, Charles is responsible for designing and implementing the REITs capital investment and public private partnership (P3) strategy. From 1998 to 2007 Charles was the ceo of CentraCore Properties Trust.
In this episode of REIT Talk, Charles discusses IPPD's investment in charter schools, correctional facilities and other public infrastructures.
- Developing the P3 relationship with the Government
- Using structured finance to meet Government objectives
- Sale leaseback transactions
- The impact of the financial crisis on the development of built-to-fit properties
- How returns are generated from public properties and taking advantage of Government initiative
- Accessing capital
- Managing political risk
- Establishing procedures to meet increased public scrutiny
Retail REITs: Where In The Recovery Are We?
Opportunities and Challenges In Retail
Recorded: February 23, 2010
Guest: Merrie Frankel, REIT analyst, Moodys Investors Service; Host: Joanna Randell, editor, REIT Cafe
 Merrie Frankel is a REIT analyst at Moody's Investors Service. She has been with Moody's for over 11 years and is responsible for rating over 20 REITs and REOCs in North America. Merrie has previously held a variety of positions with Ernst & Young Kenneth Leventhal Real Estate Group, Cushman & Wakefield, JPMorgan Securities and Saloman Brothers, Inc. She is a frequent speaker at real estate events and trustee at the Urban Land Institute. Merrie is also an adjunct professor at New York University and Columbia.
In this week's episode of REIT Talk, Merrie discusses the economic retail recovery and the opportunities being presented to retail REITs.
- The downturn in the retail sector compared to other sectors.
- Will consolidation lead to a few big players in this sector?
- Defining B and C types properties and any opportunities for 'flipping'.
- How should retail REITs be using dry powder?
- Pro-active portfolio management in 2010 and beyond.
- Emerging trends in tapping equity and the capital structure.
- The impact of online shopping.
- Profiling the retail investor.
- Dark clouds and silver linings on the REIT horizon.
Emerging Trends from Q4, 2009
Are REITs still focusing on fundamentals?
Recorded: February 12, 2010
Guest: Paul Adornato, analyst, BMO Capital Markets; Host: Joanna Randell, editor, REIT Cafe
Paul Adornato is an analyst with BMO Capital Markets. Widely quoted on Bloomberg and CNBC, Paul has followed the industry for over 15 years. In this episode of REIT Talk, Paul offers his views on the emerging trends from the final quarter of 2009, whether the results signify a bottom has been reached in commercial real estate and his top picks for 2010.
- The main focus of the earnings calls so far the differences to previous years.
- Are earnings meeting expectations? What are the expectations?
- The relation between Q4 results and the recover of commercial real estate
- Write-downs: Are they finished?
- Continuation of deleveraging
- Sectors quickest to recover and slowest to rebound
- Are we seeing a separation between the 'haves' and the 'have-nots'?
- How will 2009 be remembered in REIT history?
A CMBS Market Update
Examining The Securitization Market
Recorded: February 03, 2010
Guest: Dan Rubock, senior vice president, Moody's Investors Service, Kevin Blauch, partner, Latham & Watkins, LLP; Host: Joanna Randell, editor, REIT Cafe
Dan Rubock is senior vice president with Moody's Investors Service and group counsel for the commercial real estate finance group. Before joining Moody's in 1999, he practiced real estate law and litigation with Cadwalader, Wickersham & Taft, Dechert Price & Rhoads and White & Case. He is the author of over 30 special reports and rating methodologies with Moody's.
Kevin Blauch is a partner with Latham & Watkins practising in structured finance, real estate and derivatives. Prior to joining Latham, he was with the structure finance group at Milbank, Tweed, Hadley & McCloy. He has been extensively involved in commercial loan work outs, mortgage REIT organization and various real estate bankruptcy matters with a focus on CMBS.
In this episode of REIT Talk, Kevin and Dan discuss the evolving securitization market, potential CMBS deal volumes and how investor confidence will support the market when TALF expires.
- The impact of maturing CMBS loans on the real estate market
- Interaction of legacy loans and new securitizations
- The volume of the CMBS market--will it reach 2007 levels?
- The differences between 'old school' and 'new school' CMBS deals
- Post-TALF: Is the securitization market ready to stand solo?
- The updated securitization processes
- Are there any risks in preventing a resurgence of the CMBS market?
Capital Structure, Cashflow and Dividends in the REIT 2010 environment
A Conversation with Gordon DuGan, ceo, W. P. Carey & Co. LLC
Recorded: January 26, 2010
Guest: Gordon DuGan, ceo, W. P. Carey & Co. LLC; Host: Joanna Randell, editor, REIT Cafe
 Gordon DuGan is the ceo of W.P. Carey & Co. LLC. He joined the firm in 1988 and runs the Corporate Property Associates non-traded REIT funds. In this episode of REIT Talk, Gordon discuss the cashflow, capital structure and dividend expectations for 2010 in the REIT industry.
- The sale leaseback strategy employed by W.P. Carey.
- How have REITs adjusted their capital structures and investment strategies to retain risk averse investors?
- The necessary capital structures for REITs to be successful in 2010.
- Investor concerns over recourse and non-recourse debt.
- Evaluating a REIT's financial stability: What to look for
- The changing dynamics between REITs and lenders
- Understanding the relationship between cashflow and dividend payout
- How are REITs going to access capital this year?
The IPO Market
A Conversation With Mark Decker, Sr., managing director, Robert W. Baird & Co., Inc.
Recorded: January 20, 2010
Guest: Mark Decker, Sr., managing director, Robert W. Baird & Co., inc.; Host: Joanna Randell, editor, REIT Cafe
 Mark Decker is the head real estate for Robert W. Baird & Co., inc. He moved to the investment banking side of real estate after a 12 year stint as the president of NAREIT while concurrently serving as the ceo of Pension Real Estate Association. He is the receiptant of the 1997 NAREIT REIT Industry Leadership Award.
In this episode of REIT Talk, Mark explores the IPO market and how it is evolving to keep up with the demands of a consumer driven recession.
- The IPO market in 2009.
- Pricing trends seen so far.
- Differences between the IPO market in 2009 and previous cycles.
- Ingredients for a successful IPO.
- Reasons behind IPO retractions and reduced offerings.
- Can established REITs with legacy loans keep up with new real estate investment vehicles?
- The impact of a growing REIT industry--is it more competition or better represenation?
Note: During this episode, the average leverage rate according to NAREIT is quoted incorrectly. It is actually 49%.
Benefiting from 'Staycations'
A Conversation With Byron Carlock, ceo, CNL Lifestyle Properties
Recorded: January 15, 2010
Guest: Byron Carlock, ceo, CNL Lifestyle Properties; Host: Joanna Randell, editor, REIT Cafe
 Byron Carlock is the ceo of CNL Lifestyle Properties, a lifestyle fund that owns a mixture of ski, golf, amusement parks and other resort properties across America and Canada. He has held executive management positions with Atlanta Post Properties and W.B. Johnson Properties, both in the hotel and luxury lifestyle sector. Byron discusses the demographics driving the current success of the CNL Lifestyle Properties fund and how it is preparing to face the ongoing economic pressures of 2010.
- The property types and geography included in the CNL Lifestyle fund.
- How has the 'staycation' trend benefited CNL Lifestyle?
- Preparing for the Winter Olympics in Vancouver
- Examining the driving forces of the baby boomers and echo boomers
- Exploring how consumer demand for experience is shaping property investments
- Is CNL in a reverse cycle to the rest of the real estate market? How sustainable are the results?
- How is CNL Lifestyle preparing for continued economic pressure?
Note: In the interview, Byron quotes CNL's leverage incorrectly. It is actually 27%.
The Cycle Monitor-Q3, 2009 Analysis
A Conversation with Glenn Mueller
Recorded: January 12, 2010
Guest: Glenn Mueller, real estate investment strategist and professor, Dividend Capital, University of Denver; Host: Joanna Randell, editor, REIT Cafe
 Glenn Mueller is a real estate investment strategist with Colorado based Dividend Capital and a professor at the University of Denver. Glenn has over 30 years of experience in the real estate industry of which a large proportion has been research driven. The Cycle Monitor is a quarterly report he produces detailing each sector of the REIT industry. In this episode of REIT Talk, Glenn discusses the macro economic real estate market and which sectors are likely to recover quickest.
- The shape of economic recovery, is it a 'V' or a 'W'?
- Impact of Government programs on the real estate market and positive GDP growth.
- Delinquency rates in retail and hotel.
- Future of hotel sector, both business and tourist.
- Geographic sectors set to be changed forever by this cycle.
- The industrial sector--is it over built?
- Impact on the mutlifamily sector of an increasing college graduation rate
- The economic growth of Asia--is it good or bad for the U.S.?
- Back to basics in the CMBS market
Glenn's quarterly paper can be downloaded here
For further information about the University of Denver's educational real estate programs's click here
Outlook Negative
Another Rocky Year For REITs?
Recorded: January 06, 2010
Guest: Steven Marks, managing director, Fitch Ratings; Host: Joanna Randell, editor, REIT Cafe
The 2010 REIT Outlook: Back To Basics report written and published by Fitch Ratings can be downloaded here.
Steven Marks, managing director, Fitch Ratings discusses the 2010 REIT Outlook: Back to Basics report published by Fitch in December. While the overall rating of equity REITs remains negative, Steven explains how the situation is not as dire as it seems and discusses how REITs are accessing capital, de-leveraging and the market changes necessary for a rating upgrade.
- Accessing the unsecured debt market and the impact on liquidity.
- The IPO market and success of blind-pooled IPOs.
- Organic methods of de-leveraging.
- REIT investment opportunities in the wake of maturing CMBS debt.
- The Industrial sector--will it rebound?
- Reasoning behind a 'stable' rating for office sectors.
- The impact on real estate of Government sponsored programs expiring in 2010.
- Competitive positioning of REITs compared to other real estate investment vehicles.
A Conversation With Tony Thompson
What's The Outlook For 2010?
Recorded: January 04, 2010
Guest: Tony Thompson, ceo, Thompson National Properties; Host: Joanna Randell, editor, REIT Cafe
Tony Thompson, the ceo of Thompson National Properties, LLC has over 35 years of experience in the real estate industry. He founded Triple Net Properties, LLC and NNN Realty Advisors, which merged with Grubb & Ellis in 2007. During this episode of REIT Talk, Tony shares his views on the signs of a market recovery, what we may see in future real estate cycles and which sectors will see the slowest recovery.
The Macro Real Estate Market
Examining The Changing Dynamics
Recorded: December 15, 2009
Guest: John Pelusi, executive managing director and executive managing member, Holliday Fenoglio Fowler, L.P.; Host: Joanna Randell, editor, REIT Cafe
John Pelusi, executive managing director and executive managing member, Holliday Fenoglio Fowler, L.P. has 30 years of experience in the commercial real estate market, including structured finance, debt placement and investment sales, executing real estate transactions in excess of $16 billion over his career. Recently John joined host Joanna Randell to discuss the current macro real estate market.
- The unique challenges of the current real estate market
- Impact of Government intervention on lending and real estate transactions
- Recent CMBS deals--does is signal a resurgence?
- Identifying which sectors will be offering the most growth, the most returns and which will be the slowest to recover
- Have the credit markets thawed? How are real estate investment entities refinancing?
REIT Cafe at REIT World
Interview with Brad Case, NAREIT
Recorded: December 09, 2009
Guest: Brad Case, vice president of research and industry information, NAREIT; Host: Joanna Randell, editor, REIT Cafe
Brad Case is the vice president of research and industry information for NAREIT. Brad joined NAREIT in 2006 after seven years in the Division of Research & Statistics at the Board of Governors of the Federal Reserve System. He is responsible for the ongoing development and management of NAREIT's research program, including internal and sponsored research activities. At the REIT World event, Brad discussed the link between valuation and volatility and how increased investment transparency and Goverment assisted liquidity will help propel the REIT industry forwards.
The New Equity Raising Environment
How Much Dry Powder Should REITs Have On Their Balance Sheets?
Recorded: December 04, 2009
Guest: Mitchell Hersh, ceo, Mack-Cali Realty Trust; Jeffrey Friedman, ceo, Associated Estates Realty Trust; Host: Joanna Randell, editor, REIT Cafe
Mitchell Hersh, ceo of Mack-Cali Realty Trust, one of the largest REITs in the U.S., joins Jeffrey Friedman, ceo of apartment focused REIT, Associated Estates Realty and host Joanna Randell in discussing the amount of equity raised by REITs, possible deployment opportunities and the expectations for the money raised.
- The kind of capital is available for REITs
- Expectations for the money raised, paying down debt vs. new investments
- How long will REITs be in an equity raising environment?
- "The buying opportunity of a lifetime"--is it a myth?
- When will the the equity translate into increased dividends?
Brandywine Realty Trust
Interview with chief financial officer, Howard Sipzner
Recorded: November 25, 2009
Guest: Howard Sipzner, chief financial officer, Brandywine Realty Trust; Host: Joanna Randell, Editor, REIT Cafe
Howard Sipzner joined Brandywine Realty Trust in 2006 as executive vice presiden and chief financial officer. Howard has witnessed real estate cycles from numerous angles, including banking, capital markets and operations. Prior to joining Brandywine, he was chief financial officer and treasurer of Equity One, Inc.
REIT Cafe at REIT World
Interview with Paul Adornato, REIT Analyst, BMO Capital Markets
Recorded: November 13, 2009
Guest: Paul Adornato, REIT Analyst, BMO Capital Markets; Host: Joanna Randell, Editor, REIT Cafe
Paul Adornato has been following equity REITs for 15 years, joining BMO Capital Markets in 2004. Paul has recently appeared on Bloomberg and CNBC talking about the downturn in commercial real estate and distressed opportunities. At the recent REIT World convention, Paul discussed the opportunities he sees for the REIT industry, the impact of the macro-economy and the importance of real estate fundamentals.
REIT Cafe at REIT World
Interview with Steven Marks, Managing Director, Fitch Ratings
Recorded: November 12, 2009
Guest: Steven Marks, Managing Director, Head of U.S. REITs, Fitch Ratings; Host: Joanna Randell, Editor, REIT Cafe
Steven Marks joined Fitch Ratings in 2006 and is currently managing director, head of U.S. REITs. Prior to joining Fitch, Steven spent eight years with Bear Stearns in real estate finance. A regular at the NAREIT events, REIT Cafe sat down with Steven to discuss the mood of the REIT industry as it enters 2010, hot topics under debate and what challenges we could be discussing at next year's event.
Examining the public REIT business model
How has it withstood the financial crisis?
Recorded: November 04, 2009
Guest: Ralph Block, REIT Expert and CEO, Essential Publishing; Host: Joanna Randell, Editor, REIT Cafe
REITs are moving away from high leverage, the number of new developments have decreased and the impending commercial market melt-down could push vacancy rates even higher. To meet these challenges REITs are re-aligning their priorities to focus on income-generating properties, reducing their investment in new developments, but where will this leave them when the market does pick-up?
Ralph Block discusses these issues and more including:
- The key changes to the business model post-financial crisis
- To what extent should REITs forfeit long-term investment for short-term gains
- How are REITs updating their investor conversations and education?
- Opportunities in the maturing CMBS market
- Are REITs maintaining their competitive edge as a portfolio diversifier?
Episode 158
"Real Estate Jobs In A Tough Market"
Recorded: January 20, 2009
Guest: Anthony J. LoPinto,Chief Executive Officer,Equinox Partners
Topic:
Tony LoPinto, CEO of Equinox Partners, a retained executive search firm focused exclusively on the real estate industry, joins host, Anatole Pevnev, to discuss today's real estate job market and strategies that will help both employees and employers make the best of a very difficult situation.
Topics discussed include:
- How have hiring practices changed at real estate operators and REITs over the past year?
- What opportunities does this environment present for real estate operators and investors?
- What should employers be focused on today?
- What should employers be careful about today?
- What are the opportunities for job hunters today?
- What challenges do job hunters face today?
- What are the most important things for a job hunter to do in this environment?
- What are the human resources trends that are surfacing as we slog through this downturn?
Program Length: 38:28 minutes
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