REIT Primer Bear Stearns

June 13, 2018 | Author: exaltedangel09 | Category:Real Estate Investment Trust
DOWNLOAD PDF
Share Embed

Description

Equity Research
DECEMBER 2007
Real Estate Investment Trusts REITs 101: A REIT Primer „ WHY REITS? REITs have existed for more than 45 years, but the modern REIT era can be traced to the early 1990s. In the subsequent 15 years, the real estate industry has undergone significant and, we think, irrevocable structural change driven by the shift from privately to publicly owned real estate and the resulting migration of assets and talent into the public markets. During that period, the REIT sector has experienced exponential growth and evolved into a viable and credible investment alternative. We believe these trends are sustainable
„ AND WHY THIS PRIMER? With this report, we present an overview of the REIT industry, including its history and performance, fundamental and sector drivers, and, finally, a stock valuation framework. We hope experienced investors will use the information contained in this report as a reference, while those new to REITs may find it helpful in familiarizing themselves with the industry
„ OUTLOOK FOR THE GROUP. REITs are down year to date after outperforming the broader market for seven years. Notwithstanding the group’s solid fundamentals, investor sentiment turned materially negative in 2007, driven by the perceptual connection to weak housing markets and the consequent fear of a rollover to the commercial debt markets. The group faces a series of issues  including macroeconomic concerns, weak housing markets, and constrained debt markets  with no directional consensus. Despite the lack of near-term visibility, we think REITs may turn out to be something of a defensive alternative among financials in 2008 by virtue of better relative fundamentals and growth prospects, attractive valuations, and strong balance sheets
Research Analyst Ross L. Smotrich (212) 272-8046 [email protected]
Bear Stearns does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Customers of Bear Stearns in the United States can receive independent, third-party research on the company or companies covered in this report, at no cost to them, where such research is available. Customers can access this independent research at www.bearstearns.com/independentresearch or can call (800) 517-2327 to request a copy of this research. Investors should consider this report as only a single factor in making their investment decision
PLEASE READ THE IMPORTANT DISCLOSURE AND ANALYST CERTIFICATION INFORMATION IN THE ADDENDUM SECTION OF THIS REPORT
BEAR, STEARNS & CO. INC. 383 MADISON AVENUE NEW YORK, N.Y. 10179 (212) 272-2000 WWW.BEARSTEARNS.COM
BEAR, STEARNS & CO. INC
Page 3
Page 4
REAL ESTATE INVESTMENT TRUSTS
Table of Contents Executive Summary………………………………………………………………………………………………………………………………….7 Part One: A REIT Defined ………………………………………………………………………………………………………………………12 Part Two: History …………………………………………………………………………………………………………………………………..24 Part Three: Fundamental Overview…………………………………………………………………………………………………………..30 Part Four: Stock Analysis and Valuation …………………………………………………………………………………………………..54 Part Five: Indices……………………………………………………………………………………………………………………………………64 Part Six: Current and Future Trends………………………………………………………………………………………………………….67 Part Seven: Glossary of REIT Terms ………………………………………………………………………………………………………..72
Bear Stearns REIT Team Ross Smotrich (212) 272-8046 [email protected] Jeffrey S. Langbaum Office/Industrial (212) 272-4201 [email protected] Amy L. Young, CFA Retail — Regional Malls/Shopping Centers (212) 272-3523 [email protected] George A. Hoglund, CFA Commercial Mortgage/Specialty Finance (212) 272-6272 [email protected] Michael R. Lewis, CFA Multifamily (212) 272-1108 [email protected] All pricing is as of the market close on November 27, 2007, unless otherwise indicated
Research assistance provided by Matthew Rand and Ioana Diaconescu
BEAR, STEARNS & CO. INC
Page 5
Page 6
REAL ESTATE INVESTMENT TRUSTS

View more...

Comments

Similar documents:

Copyright © 2018 PDFShare Inc.