06/27/2019 | by
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VEREIT Tenants Largely Immune to Retail Disruption

Glenn Rufrano, CEO of VEREIT, Inc. (NYSE: VER), joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.

Rufrano discussed the performance of VEREIT’s retail tenants. He noted that VEREIT has no mall-oriented tenants, which is where the bulk of closures have occurred. “Our retail is discount and service-oriented, and those have been a little immune,” he said.

Rufrano also commented on the outlook for acquisitions and dispositions this year. He stressed that VEREIT is “very conscious of our debt this year. We want to keep our debt down.” VEREIT is looking to sell assets that don’t offer long-term diversification to the portfolio, he said.

Dispositions will exceed acquisitions this year, according to Rufrano. That reflects VEREIT’s joint venture partnership with Korea Investment & Securities Co., Ltd., which involved the sale of $407 million of industrial investment grade assets.

Rufrano said the assets were sold at a low cost of capital, enabling VEREIT to reduce debt.