Zach Swartz. partner at Vinson & Elkins, sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8–11.
Schwartz says REIT deal terms are increasingly being shaped by a pickup in M&A activity as valuation gaps between public market pricing and intrinsic value begin to narrow. With some REIT stocks recovering but still trading at discounts, buyers are stepping in, including through take-private transactions. At the same time, investors providing capital are pushing for stronger change-of-control protections to ensure liquidity or compensation if a REIT is acquired.
Meanwhile, Schwartz highlighted the continued rise of specialty asset classes. After cold storage dominated the IPO story in 2024, data centers—driven by AI demand—have taken center stage, alongside growing interest in senior housing. In senior housing, powerful demographic tailwinds and a lack of new supply are creating attractive opportunities for REITs.
From a legal and regulatory perspective, Schwartz urged REITs to plan for a potential SEC rulemaking that could shift public companies from quarterly to semi-annual reporting, raising important questions around guidance, disclosures, and capital markets activity.