Joint Ventures Could Become a Bigger Alternative Capital Source for REITs, Attorney Says
05/07/2019 | by Nareit Staff

Kathryn Furman, partner at King & Spalding, participated in a video interview at Nareit’s REITwise: 2019 Law, Accounting & Finance Conference in San Antonio.

Furman moderated a REITwise session on alternative capital sources for public REITs and said she considers preferred equity one of the most common alternative capital sources, even though it is publicly offered.

“I think we’re [also] going to see a lot more joint ventures,” she added, noting that they can be used to monetize assets and expand a platform off-balance sheet, among other benefits.

Regarding the capital markets for REITs, Furman said she’s optimistic, with some sectors currently trading at a premium to their asset values. She added that capital dexterity is a worthwhile benefit for listed REITs that are accessing private capital.