RBC Capital Markets Banker Expecting “Healthier” REIT IPO Market

John Brady, managing director of RBC Capital Markets, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.

Brady discussed action in the initial public offering (IPO) market for REITs in 2014, noting that activity “is more back-ended this year than it has been in prior years.”

Going forward, Brady predicts a “healthier” IPO market in general with an uptick in the number of offerings.

Meanwhile, Brady said he expects to see more mergers and acquisitions activity, particularly in the mall and net-lease REIT sectors.

Brady also touched on higher interest rates and their impact on REIT interactions with the capital markets.

“People have always expected interest rate increases to have a negative effect on real estate,” he said. “But as long as it’s a moderate movement, REITs tend to perform pretty well.”

There is some benefit to REITs from higher interest rates, as rate increases are  usually driven by a strengthening economy that tends to benefit real estate, according to Brady.