05/23/2011 | By Matthew Bechard
The May/June issue of REIT magazine is now available in print and online, in time for the upcoming REITWeek 2011: NAREIT's Investor Forum. The issue focuses on "Building a Better Nest Egg" and the key role REITs are playing in new approaches to retirement planning.
One such approach is detailed in BYU Professor Craig Israelsen's new book "7Twelve: A Diversified Investment Portfolio with a Plan." Israelsen, interviewed in the magazine's "Capital Markets" column, has identified seven broad asset classes (U.S. equity, non-U.S. equity, real estate, resources, U.S. bonds, non-U.S. bonds and cash) and within those classes are 12 actionable investments (this includes REITs). All 12 of the investment options should be weighted equally in the portfolio, according to Israelsen.
Along similar lines, "Retirement 2.0" explores the changing attitudes toward real estate, and particularly REITs, in modern retirement plans. One company that has fully embraced the value of REITs is PIMCO. As part of this article, PIMCO's Stacy Schaus and Bob Greer discussed where REITs fit in amidst the new normal in the defined contribution world.
Big changes have been the norm as of late for General Growth Properties (NYSE: GGP). Once a stalwart in the retail REIT landscape, the company fell on hard times amidst the financial crisis. Since then the company has filed for bankruptcy, been in and out of acquisition talks, restructured and brought in new management. Now back on the NYSE, GGP is "Back from the Brink" and ready to reclaim its reputation.
Change is also the subject of "The Rise of Renter Nation," specifically how apartment REITs are dealing with the surge in demand for their properties, the changing tenant demographic and the societal shift away from a homeownership mentality.
In this issue's "One-on-One" feature, Michael A.J. Farrell, chairman, president and CEO of Annaly Capital Management (NYSE: NLY), talks about some of the bold steps he has taken in his career and his views on what the future holds for the financing markets.
Two companies serving targeted niches are also profiled in the May/June issue of REIT Magazine: Real Estate Investment Today. Digital Realty Trust (NYSE: DLR) was an early mover in the now booming space of datacenters, and the firm has continued to be an industry innovator. Americold Realty Trust specializes in temperature-controlled warehouses used for storing frozen and chilled products.