Real Estate Investment Banker Reflects on Tax Reform, IPO Market

Mark Decker Sr., vice chairman at BMO Capital Markets, joined REIT.com for a video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.

Decker previously served as NAREIT president, and was at the helm of the association when the 1986 Tax Reform Act was passed.

Decker remarked that at the time of passage, the REIT model was not very well known, nor well-established.

“The boom and bust history of real estate in the mid-eighties has changed a lot. The public real estate markets have really helped smooth the markets so there’s less rumor-driven boom and bust associated with it,” he noted.

Decker also commented on stagnation in the REIT initial public offering (IPO) market, and discussed the under-reported issues he will be following for the remainder of the year.

Decker pointed out that many smaller, well-run companies aren’t getting the capital “to take that leap into the public markets.”

“I like the idea of a healthy public market for smaller companies that can be grown, and one out of 10 makes it through the gauntlet and becomes a really high quality REIT,” Decker said.