Development Pipeline Outlook

REIT magazine: November / December 2018

Bill Bayless, CEO, American Campus Communities (NYSE: ACC)

"With a current owned development and pre-sale development pipeline totaling $1.1 billion, including our recently announced $615 million project to develop, own, and manage purpose-built housing for college students participating in the Disney College Program, we expect our development program to remain highly active into 2023 and beyond.

In just 2017 and 2018, American Campus opened approximately $1.2 billion of owned development and presale development projects located on or within walking distance to major tier-one universities. Much as they were at our inception, these tier-one university markets continue to be dramatically underserved in terms of modern, academically-oriented properties located on or proximate to campus.

With this favorable fundamental backdrop and current targeted stabilized yields approximately 150 to 250 basis points above current valuations for stabilized assets, new development continues to be a highly accretive capital allocation opportunity.”

Victor Coleman, Chairman, President & CEO, Hudson Pacific Properties (NYSE: HPP)

"We anticipate our development and redevelopment activity will remain consistent over the next three to five years. We have 1 million square feet of office projects either under construction or about to break ground in Los Angeles, which will deliver in the next three years.

Our future pipeline comprises 2.6 million square feet of potential office development, inclusive of 1.3 million square feet at two of our Hollywood studio lots and our West Los Angeles Element LA campus, as well as 1.3 million square feet of expansion at two of our Silicon Valley assets.

We monitor several factors as we build out our pipeline: the pace with which media and technology companies are growing their office footprints; active leasing requirements for and progress at our existing assets and under construction projects; and the competitive supply, particularly new, class-A, large-block availabilities. While we expect to have ample liquidity, we’re mindful of our sources and uses and balancing short- and longer-term funding objectives.”

Conor Flynn, CEO, Kimco Realty Corp. (NYSE: KIM)

"We have spent significant time and effort to develop a very robust future redevelopment pipeline that is focused on unlocking the embedded value of our existing real estate. The pipeline consists of both retail repositioning investments and numerous mixed-use projects, which are concentrated within our top 20 markets and where both the market and real estate are suggesting that greater density is warranted.

These larger projects consist of multiple phases, creating ultimate flexibility in our ability to develop the projects, while managing through market cycles. We anticipate our spend to be approximately $200 million a year, but the size of our active pipeline and the capital we allocate is governed by the following guiding principles: maintaining a strong and flexible balance sheet; keeping a healthy dividend coverage ratio; and positioning ourselves to generate consistent FFO growth.”

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