Stephanie Krewson-Kelly, vice president of investor relations for Corporate Office Properties Trust (NYSE: OFC), has authored a new book, “The Intelligent REIT Investor: How to Build Wealth with Real Estate Investment Trusts,” set for release on Sept. 1. She joined REIT.com for a video interview on Aug. 10 to discuss the book and the evolving perceptions of REIT investment.
Krewson-Kelly’s book is written for novice REIT investors who are unfamiliar with the industry. She said she found that newcomers didn’t necessarily understand the language and nuances of REITs.
“After reading my book, you will have the industry knowledge, the lexicon and the basic tools you need” to understand deeper REIT investment analysis, she said.
Based on her experience working in investor relations, Krewson-Kelly said the general understanding of REITs has “come a long way.” She attributed the progress to the inclusion of REITs in the S&P 500.
“That was huge,” she said. “It was a watershed event for demand for REIT shares.”
However, Krewson-Kelly also has observed that generalist investors remain wed to the idea that interest rate changes have dramatic effects on REIT performance. “That’s just not true,” she said. Krewson-Kelly noted that research has shown that Equity REITs tend to outperform other investment classes when interest rates are rising.
Krewson-Kelly pointed out that because REITs were still classified as financial companies under the General Industry Classification Standard, misperceptions about REITs persisted. With Equity REITs slated to be elevated to a new headline real estate sector at the end of the month, Krewson-Kelly said she is already seeing the “pre-effects” of the move.
“The number of requests we have for meetings with generalists has just gone through the roof,” she said.