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Our podcast series features NAREIT throughout July, hear about the recapitalization process for REITs now
Tuesday, July 21, 2009
Listen to Financial Research Perspectives, FactSet's podcast, throughout July to hear an ongoing discussion with representatives from NAREIT. Listen to the first in our series now. In our episode, we interview Brad Case, President of Research and Industry Information for NAREIT, to dicuss the recapitalization of the REIT industry that has taken place throughout 2009.
FactSet's ongoing podcast series features a discussion with NAREIT throughout the month of July. NAREIT representatives will speak on topics including the recapitalization of the REIT industry, restoring credit confidence in REITs, and equity real estate investment in the public markets.
Our first in the series features Brad Case, Vice President of Research and Industry Information for NAREIT. Case discusses the unprecedented amount of secondary offerings that REITs have done this year as they raise capital and rebalance the debt to equity mixture.
This year saw more than 56 secondary offerings by REITs as early as July, and Case discusses how these equity offerings, paired with other moves within the industry that have realigned the debt to capital ratio, represent a strenghtening among REITs.
"The issuance of equity in this kind of market is actually a terrific piece of good news," remarks Case, responding to whether there is a concern that secondary offerings may dilute the overall share value, and goes on to discuss why the move will be seen as positive for the company:
"It says this company has proven that it is strong enough to survive the liquidity crisis. It has already addressed its liquidity concerns...and as stock prices go up, it’s even going to be in a better position to acquire equity at a lower cost of capital. And again, it’s going to be able to use that equity to pay down its debt to meet its immediate debt obligations and to strengthen its capital structure more generally, so that going forward when the commercial property markets – when the transaction volume increases, those REITs will be in a position to acquire properties at good prices."
Listen to the full interview to hear Case’s comments on whether REITs will present a strong market showing throughout 2009, how long the recapitalization process will last, and much more. You can also listen to the podcast in iTunes or read a full transcript.
FactSet’s goal is to provide our users and the public with perspectives and insights into the topics that drive financial markets. Through our podcast series, we offer a range of interviews with experts both from inside our company and from among our clients and partners.
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