Lisa Palmer, president and CEO of Regency Centers Corporation (Nasdaq: REG) and Nareit’s 2023 chair, said the majority of REIT sectors are seeing healthy fundamentals so far in 2023.
In a video interview, Palmer said that despite the challenging macroeconomic environment, most REIT sectors “continue to benefit from favorable supply and demand dynamics.”
From the shopping center REIT perspective, “our sector is operating in a strong retail environment right now and the majority of shopping center properties are located in suburban trade areas that continue to benefit from post-pandemic structural tailwinds,” Palmer said.
“I believe that’s true for other sectors as well, so we’re excited about the activity and opportunities for growth in 2023 and beyond,” she added.
Palmer also spoke about the main challenges involved in positioning boards and management teams to oversee ESG and related reporting.
“Management teams have to proactively and deliberately plan and act to stay current and educated in this rapidly evolving industry. Responsibilities and accountabilities need to be clear inside companies through their management teams as well as inside boardrooms,” Palmer said.
Palmer also stressed the need to stay educated, given the potential for even more regulated disclosure.
Meanwhile, Palmer said that while progress has been made in advancing diversity in the real estate industry, “there’s still a lot of work to be done.” She noted that REIT member companies are coming together and recognizing that “together we can solve this problem…it’s really encouraging to see the commitment in our industry to that work and I’m excited to see the progress and advancements that we will make.”