According to a report from the National Association of Real Estate Investment Trusts, REITs have gained over 5 percent through February. “With a long-term recovery in real estate valuations ahead, there are good prospects for total returns for REITs,” says Michael Hudgins, VP and global REIT strategist at JP Morgan Asset Management.
Ron Kuykendall of NAREIT suggests that the answer may lie in the fact that ”investors aren’t buying today’s fundamentals as much as what they think tomorrow’s will be.” He further belives that publicly raised funds are now being used to acquire properties from private side owners who were not able to tap into public equity markets are a contributing factor to this heightened rebound.
Dr. Sam Chandan of Real Capital Analytics concurs: “The best-positioned REITs are facing the same general set of challenges in managing lower occupancy and rents as the rest of the marketplace. But these REITs have also been very successful in raising capital in the public markets over the last few quarters.”
Keywords: JP Morgan Asset Management, market, Michael Hudgins, NAREIT, Real Capital Analytics, REIT, Ron Kuykendall, Sam Chandan
