REITs Will Continue to Outperform in 2012
12/16/2011 | By Matt Bechard
Investors have become more favorable toward REITs since the financial crisis, according to Arthur Hurley, vice president and senior portfolio manager with Columbia Management.

In a video interview with REIT.com at REITWorld 2011: NAREIT’s Annual Convention For All Things REIT in Dallas at the Hilton Anatole hotel, Hurley discussed investor’s opinions and his outlook for 2012

“I think REITs did a really great job of demonstrating that they had access to capital,” said Hurley. He added that it started out with access to the equity market and moved on to access to the debt market.

Additionally, he said that REITs have also demonstrated that they have the highest qualities of portfolio across the spectrum.

Looking back on 2011 Hurley said that it’s been a busy year with a variety of major events.

“We had a lot of merger and acquisition activity taking place. In addition to that we certainly had some macro events that stirred the marketplace,” Hurley said.

However, he said that he believes one of the biggest issues was that throughout all of the volatility and activity in the equity market, REITs continued to outperform and show that they have the ability to continue to provide a steady income stream.

When it comes to 2012, Hurley said that REITs have a good opportunity to outperform once again. He said the last time that REITs underperformed the broader equity market was in 2008.

“It’s been a pretty good run for the group,” he said. Hurley added that fundamentals continue to improve, occupancies continue to tick up and rental rate growth continues in the market place.

“Therefore you have this property level income that continues to grow. It really lines up, that the space, throughout the volatility can offer a continued steady improving income stream, and certainly gives the group the potential to outperform once again,” Hurley said.
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