Investing in REITs that Offer Earnings and Dividend Growth: Alexander D. Goldfarb, Managing Director and Senior REIT Analyst, Discusses His Outlook and Top REIT Picks with The Wall Street Transcript
67 WALL STREET, New York - June 19, 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: Parkway Properties Inc. (PKY), American Campus Communities In (ACC), Developers Diversified Realty (DDR), Wal-Mart Stores Inc. (WMT), The Home Depot, Inc. (HD), Lowe's Companies Inc. (LOW), Simon Property Group Inc. (SPG), Equity Residential (EQR), Post Properties Inc. (PPS), Essex Property Trust Inc. (ESS), Federal Realty Investment Trus (FRT), Realty Income Corp. (O) and many more.
In the following excerpt from the REITs Report, an expert analyst discusses the outlook for the sector for investors:
TWST: When we spoke a year ago, you were bullish about the REIT space overall. Is that still the case?
Mr. Goldfarb: It is. We remain bullish on the REITs. You've got Ben Bernanke and every other global central banker using the same QE playbook. The world is awash in liquidity and continues to desperately search for yield.
If you're going to have central bankers continue their aggressive monetary practices and currency debasement, that is just going to funnel through to interest rate and yield-based instruments, which REITs are. You can see, especially since the BOJ announced that Japan was going to join the QE trade as well, REITs have done very well, and it's not surprising because they offer earnings and dividend growth.
TWST: With investors' search for yield still driving the stock price, how are the actual fundamentals of the real estate market faring? Are the landlords actually seeing occupancy gains, rental growth?
Mr. Goldfarb: In general, fundamentals are pretty good. New York and D.C. office would be exceptions, where the markets have stagnated. But look at the other sectors - industrial, things are slowly getting better, occupancies are slowly improving. Certainly retail continues to do very well, in part because there's no new supply and retailers continue to want to open new stores, so both malls and shopping centers are doing well.
Despite the significant underperformance of apartments, the multifamily market is still pretty healthy; NOI growth this year is going to be 5.5% to 6%, next year it's probably 4% to 5%, and those are still very healthy numbers. There was a big fear that everybody was going to move out to either buy or rent a home, neither of which has happened. The only fear that is based in reality is supply, and that's really not an issue until late 2014, early 2015, except in a few major markets like Washington, D.C...
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.
