A Wall Street Transcript Interview with Paul E. Adornato, CFA, a Senior Analyst in BMO Capital Markets' Equity Research Group, Covering the Real Estate Investment Trust Sector: Are REITs Overvalued?

Wall Street Transcript

67 WALL STREET, New York - June 26, 2014 - 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, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Apartment, Lodging, Self-Storage and Office REITs - Consolidation Activity - REIT Access to Capital - Residential and Commercial REITs - Correlation Between Macroeconomy and Real Estate - Agency Mortgage REITs - Supply and Demand Dynamics - Favorable REIT Fundamentals

Companies include: Forest City Enterprises Inc. (FCE-A), Simon Property Group Inc. (SPG), Sun Communities Inc. (SUI), Equity Lifestyles Properties I (ELS), First Potomac Realty Trust (FPO), Acadia Realty Trust (AKR) and many others.

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

TWST: Let's start with a snapshot of your current coverage universe.

Mr. Adornato: I cover 31 stocks, including regional malls, shopping centers, manufactured homes, self storage, industrial and mixed office/industrial. There are also a couple of other names, such as Forest City (FCE-A) and a new IPO called Farmland Partners (FPI).

TWST: That's a broad range. What's your overall sentiment on the REIT space both from a real estate market and fundamentals perspective?

Mr. Adornato: We have a neutral opinion on the REITs overall. We see very strong fundamentals at the operating level. Real estate supply and demand is working very much in favor of property owners; that is, we are seeing good demand coming from users and still limited supply coming on to the market. Supply has been increasing - two years ago we saw almost no new supply - but the overall level of construction is still relatively constrained and certainly not in excess of the demand, to speak generally.

TWST: What is your view of stocks from a valuation and overall-return point of view?

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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