By Sarah Borchersen-Keto
[APRIL 24, 2014] Starwood Capital Group Chairman and CEO Barry Sternlicht is expressing confidence that the single-family rental housing sector has the potential to become a major REIT asset class, but he acknowledges that investors remain skeptical.
via Sternlicht Sees Strong Potential in Single-Family Housing Business | REIT.com.
“We have seen and noted the recent recovery in the housing market, but are other sectors of the real estate market being left behind. vice president and ceo of kim co. we have seen the housing market take off. that’s the good news. where are we on commercial? commercial real estate has been doing well for the last couple years after a very tough great recession.”
via REITs Rebound As Housing Recovers.
Companies are aggressively tapping the public markets this year, but no industry is as gung-ho about selling stock as real estate.
Including IPOs, follow-on offerings and equity conversion deals, the real-estate sector has raised $29.3 billion this year, up more than 90% from the prior year and the highest volume on record through late May, according to Dealogic.
Real-estate investment trusts have been the biggest driver of activity.
Of the 83 deals that had priced, 79 were REITs, with equity REITs making up slightly more than half and mortgage REITs the remaining, according to the data provider.
via It’s a REIT Bonanza Out There: Equity Volumes at Record Rates – MoneyBeat – WSJ.
Investors can buy stakes in malls, apartment towers, timber forests and even cellphone towers through real-estate investment trusts. Now, add to the list: single-family homes transformed into rental properties.Beazer Homes USA Inc., one of the nation’s top home builders, has formed a REIT that will buy and then rent single-family homes, one of the largest and most talked-about asset classes in the real-estate business. The Atlanta-based company last week announced that it was joining with buyout firm Kohlberg Kravis Roberts & Co. to form the REIT, which eventually plans to go public.Beazer already had accumulated 192 single-family homes …
via Builder Is Constructing REIT for Home Rentals – WSJ.com.
Investors piled into the stocks of small real-estate companies during the first quarter, an indication that the improving economy is encouraging investors to take on more risk.Overall, the performance of real-estate investment trusts was weaker in the just-ended quarter compared with the previous quarter. The Dow Jones All REIT index posted a total return of 10.48% in the first quarter, down sharply from the fourth quarter’s return of 15%.[REITS]But in a surprise, returns for some smaller REITs were higher.
via THE PROPERTY REPORT: Small REITs Put Up a Big First Quarter – WSJ.com.