Green Street Expects Increased M&A, Privatization Activity

 

 

Craig Leupold, CEO of Green Street Advisors, participated in a video interview at Nareit’s REITweek: 2018 Investor Conference in New York.

In the short term, Green Street sees increased opportunity for privatizations and mergers and acquisitions (M&A) in the REIT industry, Leupold said. This is based on the discounts at which REITs are currently trading in the public market and the ready availability of capital in the private market, he noted.

This could lead to a reduction in the number of REITs in the short term, according to Leupold, “but that’s probably good for the industry in the long term as it shows investors that REIT management teams and boards are doing the right thing by shareholders.”

Long term, Green Street is “very bullish on the REIT sector,” Leupold stressed. “REITs are the optimal way to own core real estate.”

Leupold also noted that Green Street welcomes activists in the REIT sector as they “provide another check and balance for REIT management teams.”