John Pawlowski, an analyst with Green Street Advisors, joined Nareit for a video interview at REITworld 2017.
Pawlowski discussed the recent performance of single-family residential REITs. He noted that the segment has had a “great run,” in large part due to the focus on operations.
“I expect investor focus to remain on the operations story,” Pawlowski said. He noted that opportunities to cut costs persist: “There’s still fruit to pick there.”
On the revenue side, ancillary income opportunities will be explored by single-family REITs and could be exploited in 2018 and 2019, according to Pawlowski.
Pawlowski also commented on last year’s merger between Invitation Homes (NYSE: INVH) and Starwood Waypoint Homes (NYSE: SFR). He described the deal as “positive” overall, with the new merged company now “better positioned” to be a consolidator.