67 WALL STREET, New York - June 23, 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 and Equity Analysts. 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: Chambers Street Properties (CSG) and many more.
In the following excerpt from the REITs Report, the Founder, President and CEO of Chambers Street Properties (CSG) discusses company strategy and the outlook for this vital industry:
TWST: What led to the decision to list the company, and how do you feel Chambers Street has been received by the investment market?
Mr. Cuneo: We listed our shares primarily to give our existing shareholders liquidity for their investment. It's been kind of a strange trading time for us. We listed, and there was very little response from new investors. I think a lot of people didn't know us. We've spent a good part of the last year really trying to get investors to know us more and build credibility in the investment community, and we've been very successful in terms of increasing our analyst coverage. We have analysts at Capital One, Oppenheimer, JMP Securities and Ladenburg Thalmann following us, and just last month Wells Fargo initiated coverage, which is a big plus. That's been a very rewarding effort this year, to work with the analyst community and get more exposure to investors. I think right now we're very happy with the way things are going.
TWST: Why the focus specifically on industrial and office net-leased properties?
Mr. Cuneo: Industrial real estate isn't glamorous, but it has always been one of my favorites. I like the efficiency of it, I like the simplicity of it, and also the fact that industrial facilities are usually located in places that have proper infrastructure, the logistics are right, you have access to ports or airports, road systems, rail systems, intermodal facilities - all those things that make moving goods across the country or even around the world a lot more efficient and a lot easier.
One of the things that we've benefited from was seeing a change in the strategy of a number of companies where they consolidated into larger facilities and went for more modern facilities. If you have a newer building, a bigger cube, more clear height, the ability to stack higher, the ability to get to rail faster or get to the highways faster, that saves money for a lot of tenants, and it makes for a much more efficient operation.
On the office side, what was attractive to us was a lot of well-located buildings with very strong tenants on long-term leases, and we have found that they've been really a good place to put your money over the last several years. We've been happy with that. We have a great mix of tenants; approximately 55% of our tenants are investment-grade, and we have good relationships with them, and we like the business.
TWST: What types of markets do you target, and how much of the portfolio is in the U.S. versus abroad?
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.