REIT.com’s latest video touches on the topic of the entire medical properties market by way of a chat with Debra Cafaro, CEO of the medical properties REIT Ventas (VTR). Ventas is a major player in medical properties from hospitals to senior care and from national to international markets, working, as do all REITs in the sector, as a channel for Medicare payments to be transformed into dividends distributed to shareholders. Cafaro says of the healthcare market that a mere 15% of US healthcare properties are present in REIT portfolios, but if she and her competitors have anything to do with it, the acquisitions will only pick up steam as time goes on.
- A Murky Real-Estate Market Comes into Focus, WSJ, Dec. 17, 2013 – Wherein FINRA proposes new reporting rules for “untraded” REITs.
- Chinese buyers develop a taste for US commercial property, Reuters, Dec. 20, 2013 – 2013 saw an over six-fold increase in Chinese investment in US commercial property.
- An Industry Revived: Commercial Real Estate in Nevada, Nevada Business, Jan 2, 2014 – Unfinished resorts getting second lives as the Sagebrush State stages a commercial real estate recovery
- Top 10 Commercial Real Estate Moments of 2013, NREI, Dec. 31, 2013 Hilton’s IPO, UBS snags Water Tower in Chicago and Pershing Square Capital pinched by JCPenney.
- Denver Real Estate Booms as Slopes Beat NYC Bustle, Investors Business Daily, Jan. 1, 2014 – Downtown Devnver’s mile-high renaissance given the spotlight
The purpose and the process of investing in a real estate investment trust (REIT) is unclear to many, even though it’s the most cut-and-dried way to put capital into commercial real estate. Some struggle with understanding the notions of portfolio management, and questions about what properties are being invested in and why keep an investor from making the leap. Others wonder about returns: how do rents and other building cash flows become dividends or push the REIT share price in one direction or another?
The personal perspective on these aspects of REITs is not often explored by mainstream media, and when it happens, it’s worth checking out. National Public Radio’s Uri Berliner recently produced an excellent program on the REIT scene by letting us follow along with his journey as an investor.
The senior living sector is a major growth area in commercial real estate. The reasons for this boil down to classic supply and demand driven by demographics. Longer life expectancy in the United States mean steady growth in age cohorts that move into senior living facilities. The over-85 segment of the population is growing at three times the rest of the population. In 25 years, it is set to double. Further, a great number of existing facilities are older product, so new unit development is being spurred in most markets.
The marketization of public education is a trend gaining traction across the country. Commercial real estate transactions and investments in the charter school space are following suit. What happens when expert commercial real estate investors take on the task of displacing the public interest in education with shareholder interest?
In at least one case, some tough business lessons were learned.
One of the greatest things about our system of government is the amount of lawmaking done in public. The texts of bills, and speeches on bills of all kinds is public information. When proposed laws come up, we have a chance to see what they are, where they came from, who they will benefit, who they will impact and why, and when the votes are coming.
But because of all the work involved, it’s still a only a slim chance. Being allowed access to this information is merely the first step. For example, NAR Commercial’s efforts on Capitol Hill include this exhaustive work of staying on top of the congressional record, watching carefully for issues that relate to commercial real estate when they arise, tracking their progress through the chambers and replicating all of this for all 50 states in addition to DC.
Some commercial real estate advocacy news from the Hill: Hon. Patrick J. Tiberi (R-OH) and Hon. Richard E. Neal (D-MA), both co-sponsors of H.R. 5746, also known as the Update And Streamline REIT Act (U.S. REIT ACT) received a letter from NAR and major trade associations in support of the Congressmen’s bill.
What’s interesting about real estate investment trusts (REITs) is they provide a way to invest in a sector through a portfolio of commercial properties doing business in that sector. Publicly traded REITs number about 200 and touch on many vital commercial RE sectors from self-storage to multifamily to office and every other CRE specialty.
Wherein CNBC’s favorite slapper, dinger and yelper Jim Cramer sits down to talk Real Estate Investment Trusts with David Brain, CEO of Entertainment Properties Trust. Brain manages portfolios ranging from movie theaters to recreational properties to charter schools. REITs are on the rise yet again, and commercial brokers have a greater role than ever in driving that market. Check out how in this clip.