1315_Nareit Testimonials_Francine Glandt_20240402_v2

Francine Glandt, managing director of real estate corporate and investment banking at Truist Securities, participated in a video interview during Nareit’s REITwise: 2024 Law, Accounting & Finance Conference held March 19-21 in Hollywood, Florida.

Glandt pinpointed the origins of the current real estate cycle as the recovery phase of the post-2008 recession, which transitioned into a sustained expansion around 2012-2013, peaking just before the onset of COVID-19. She highlighted uncertainty regarding a potential recession versus a continued slow recovery but expressed optimism following the Federal Reserve's indication of a pause in rate hikes, which provided banks much-needed clarity for potential recovery in 2024.

On the impact of Basel III, Glandt emphasized its influence on bank liquidity and capital requirements. She noted that while proposed credit standards may soften upon finalization, smaller banks are feeling greater stress due to higher concentrations of commercial real estate loans compared to larger banks with more diverse portfolios and solid capital structures.

Regarding alternative capital sources, Glandt highlighted the flexibility of publicly listed REITs in leveraging various options such as bond issuances, private placements, and REIT ATM (at-the-market) programs. She noted a surge in bond issuances early in 2024 due to favorable market conditions and emphasized the benefits of convertible bonds during market dislocations.