Jonathan Miniman, global portfolio manager and head of the Americas real estate securities research team at CBRE Investment Management, was a guest on the latest episode of the Nareit REIT Report.
During the interview, Miniman discussed: concerns impacting commercial real estate—including the banking crisis; potential opportunities for REITs in the months ahead; the role REITs can play in conjunction with private real estate; and the role that active managers can play for REIT investors.
Miniman said that the repricing of REITs that occurred last year, coupled with a likely near-term pausing in interest rate hikes, provide a “catalyst” for the asset class going forward.
“The listed market has taken a whole lot of the pain already,” Miniman said. He noted that in the past four historical interest rate increase cycles, listed REITs have started to gain ground about three months prior to the final increase.
Miniman said that in periods of dislocation, such as today, public markets tend to react more sharply to the downside. “They adjust before private real estate and they bottom and rebound prior to private real estate….we believe public real estate has overshot, and that’s really where the opportunity sits today,” he said.
“A lot of the work we’re doing is trying to make the case that it’s not go swap one for the other. It’s that listed (real estate) can be a real complement for a private market allocation,” Miniman said.
Miniman also stressed that capital markets are open for REITs. “For high quality sponsors, for well-capitalized players like the REIT market overall, the capital markets are wide open.”