REITs Make Quality Accretive Transactions at Full Price in the Right Locations and Submarkets: Expert Analyst John W. Guinee III Discusses Acquisition Activity in the REIT Sector with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - June 18, 2013 - The Wall Street Transcript has just published its REITs Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Acquisition and Financing Costs - Pricing Power Outlook - Residential and Commercial REITs - Inexpensive Access to Capital - Apartment, Lodging, Self-Storage and Office REITs

Companies include: Apple Inc. (AAPL), Exxon Mobil Corp. (XOM), ProLogis (PLD), Vornado Realty Trust (VNO), SL Green Realty Corp. (SLG), Kilroy Realty Corp. (KRC), Duke Realty Corp. (DRE), Cousins Properties Inc. (CUZ) and many more.

In the following excerpt from the REITs Report, an expert analyst discusses the outlook for the sector for investors:

TWST: What are your recommendations and top stock picks right now and why?

Mr. Guinee: We like a handful of names. We like Vornado (VNO), because they are attractively priced relative to the other gateway city names. We also like SL Green (SLG), because we like the price per pound for their Manhattan-centric portfolio. We also like Kilroy (KRC), because Kilroy is a very strong West Coast name that's been on the forefront of investing in some very strong markets, notably Silicon Valley, San Francisco and Seattle.

We also like Duke (DRE) on the industrial side, because we think it is well-priced relative to its immediate peer group. And then we also like PLD. The reason we like Prologis is we think they've done a great job of cleaning up the portfolio and delevering without having a hit to earnings. A couple of small-cap names: We like Terreno (TRNO), a small little niche industrial name, as well as Cousins (CUZ), a good solid office name in the Southeast.

TWST: How would you characterize activity over the last 12 months or so in terms of REITs acquiring new properties and growing their portfolios?

Mr. Guinee: Three points I'd make there. One is, every single REIT out there, regardless of product type but particularly evident in office and industrial, has been doing what I call quality accretive transactions. Their acquisitions have been quality accretive in that they are in the right locations and the right submarket, which means they do pay full price.

I'd also note that the development is quality accretive, and that they are building usually on land they already own, but also building in the right submarkets. On the disposition side, it's a barbell, where in some cases they are selling their very good assets at extraordinarily good pricing, and at the other end of the barbell they are shedding some unwanted real estate at...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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