Veteran REIT Analyst Says Retail REITs Well Positioned for Long Term
06/22/2017

Paul Adornato, managing director at BMO Capital Markets, joined REIT.com for a video interview at REITWeek 2017: NAREIT’s Investor Forum at the New York Hilton Midtown.

Adornato commented on the outlook for retail REITs amid changing consumer habits.

“The retail REITs are in a very good position to respond because they have great relationships and a great understanding of the real estate and strong balance sheets,” Adornato said. “Over time, I think the retail REITs will be the winners as everything plays out,” he added.

Turning to the manufactured housing sector, Adornato said he expects supply-demand dynamics to remain positive in light of tighter mortgage lending standards, which have restricted credit to single-family borrowers.

Adornato, who is stepping away from sell-side REIT research at the end of the month, noted that REITs have become much more mainstream in terms of their size and sophistication during the last three decades. However, he added that there is still work to be done to make the REIT industry more shareholder-friendly.