Best practices for communicating and engaging with media, shareholders, analysts, and other REIT industry stakeholders were some of the key topics at the seventh-annual REIT Investor Relations Symposium on June 5, hosted by the New York Stock Exchange (NYSE) and Nareit.
More than 100 REIT investor relations professionals attended the symposium, which was held at the NYSE the day before Nareit’s REITweek: 2023 Investor Conference began.
The symposium started with a panel about how current macroeconomic developments are affecting REITs and commercial real estate. Ron Bohlert, NYSE listing lead for real estate, moderated the session, which featured Michael Reinking, NYSE senior market strategist and head of the MAC desk, and John Worth, Nareit executive vice president for research and investor outreach. Reinking and Worth discussed the possibility of future interest rate hikes, and Reinking predicted that the Fed “is in the late innings” of its monetary tightening cycle. Worth noted that REITs’ solid balance sheets will continue to help them successfully navigate today’s markets. He explained that listed REITs have modest leverage and have largely fixed debt with a weighted average maturity of nearly seven years. “This creates a tremendous amount of stability for them to manage through a higher interest rate environment,” Worth said.
The second session, IR Communications and Management During Uncertain Times, was moderated by Mary Jensen, head of investor relations for AIR Communities and the panelists were Heather Crowell, executive vice president of investor relations for Gregory FCA; Laura Diorio, social media coordinator for Intercontinental Exchange; and Ted McHugh, managing director of investor relations for Edelman.
The panelists shared best practices for communicating around significant announcements, such as a CEO retirement. McHugh advised companies to “have a tiktoc of what will happen and who will be responsible for what” and to remember to “bring external investors relations personnel into the tent.” When asked about crisis communications tips for smaller companies with limited resources, Crowell emphasized the importance of using the calm times to “develop a road map about what could go wrong, what constituencies would need to be addressed,” and what the messages would be.” The panel wrapped up with a conversation about social media, with Diorio highlighting the importance of identifying target audiences, understanding their interests, and using the language they use. She also encouraged audience members to note what catches their attention on social media and to “create content in that similar vein.”
The third session, Shareholder Recruitment & Analyst Engagement, was moderate by Scott McLaughlin, senior vice president of investor relations & tax for Invitation Homes. The panelists were Rich Hill, senior vice president of real estate strategy & research for Cohen & Steers; Edward Pitoniak, CEO of VICI Properties; Gene Rubin, president of Rivel Research Group; and Haendel St. Juste, managing director & senior equity analysts for Mizho Securities USA.
During the conversation, panelists discussed the best ways to effectively identify and target global investors. Hill noted that listed REITs have a lot more competition that wasn’t there five or 10 years ago, explaining that it’s critical to for investor relations officers (IROs) to be “very clear about what REITs are, what they aren’t, and the benefits they provide.” Pitoniak underscored Hill’s point, saying that before meeting with global investors, IROs should first ask themselves, “What do these investors not know that would be of value of them?” St. Juste also reminded the audience that when working with investors in different countries it is crucial to remember the basics. IROs need to be “very simple and to explain nuances” as necessary. It’s also important for person in the meeting to walk away from it with a “very clear understanding” of the discussion, he added.
Among other topics, the session also focused on engaging with generalist investors. Rubin said that it was important to remember that generalist investors have to convince someone within their company about the value proposition of REITs. He advised IROs to answer these questions in their presentations to generalist investors: “What’s the space? Why REITs? Why this particular REIT? And why now?”
The symposium closed with a session that focused on the current and future regulatory developments that could affect REITs. Cathy Barré, executive vice president and general counsel of Nareit and Justin Durbin, director of NYSE, discussed proxy voting issues and the SEC’s public company climate disclosure proposal, among other topics.
The symposium concluded with a reception to kick off the busy week of meetings during Nareit’s REITweek: 2023 Investor Conference.