Joanne Mondares, director–SEC reporting and policies at Regency Centers Corp. (NASDAQ: REG), participated in a video interview at Nareit’s REITwise: 2019 Law, Accounting & Finance Conference in San Antonio.
Mondares commented on some of the most important things REITs need to keep in mind regarding the transition from the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR) that will occur by the end of 2021.
“For REITs right now, what we need to be focused on is looking at our debt agreements, looking at our interest rate swap agreements and understanding what the fallback language is around the alternate interest rates when LIBOR is no longer an option,” Mondares said.
Mondares also touched on the new lease accounting standards and the biggest changes that REITs will need to take into account. She also discussed other SEC issues that REITs and their investors should consider.