The worldwide REIT movement offers vast potential, but cultural gaps continue to present hurdles to true globalization of the industry. That was the perspective offered by an expert panel in New York City this afternoon at the concluding event at the National Association of Real Estate Investment Trust\u2019s annual REIT Week forum for investors. After a difficult period marked by declining stock values, the outlook for REITs is brightening, several panelists told an audience of several hundred at the Waldorf-Astoria hotel. \u201cWe still see some very positive light at the end of the tunnel,\u201d noted Jack Foster, managing director & head of global real estate for Franklin Templeton Investments. \u201cReal estate may not only be the place to be (for the future), but the place to hide right now.\u201d The cross-border flows of capital from REITs and other sources will likely continue to gain momentum. In the years to come, markets outside the United States are projected to generate some two-thirds of the revenue for Merrill Lynch & Co.\u2019s real estate investment banking operations, explained Jeffrey Horowitz, the real estate unit\u2019s global head. \u201cWe\u2019ll see more regionalization, more REITs, and more uniformity in REIT legislation throughout the European region,\u201d predicted Nancy Holland, chief investment officer of global securities for Fortis Investment. She expressed hope that India and China will develop REIT industries in the near future. Since real estate is fundamentally a local business, however, expanding outside the home country is no cinch. \u201cIt really isn\u2019t that simple to suddenly become a global player,\u201d said James Rehlaender, managing director for European Investors Inc. Other panelists noted that transparency is still a challenge. In response to a question from the panel\u2019s moderator, Neuberger Berman L.L.C. managing director Steven Brown, panelists acknowledged that transparency is improving dramatically in major markets like Japan. Yet in many countries, disclosure has a long way to go. \u201cWe still have a lot of companies that won\u2019t even tell you what buildings are in the portfolio,\u201d noted Rehlaender. Information can be particularly scarce in emerging markets, Holland pointed out: \u201cYou\u2019ve got to have people who know those markets,\u201d she said. But Rehlaender also reported signs of improvement. Citing Japan as an example, he said, \u201cIn the last three years it\u2019s better than it was five years ago, and we expect that to continue.” At least one panelist suggested that the transparency issue stems partly from perception. Third-party asset appraisals are widespread outside the United States, but are not standard practice here, noted Foster.<\/p>\n","protected":false},"excerpt":{"rendered":"
The worldwide REIT movement offers vast potential, but cultural gaps continue to present hurdles to true globalization of the industry. That was the perspective offered by an expert panel in New York City this afternoon at the concluding event at the National Association of Real Estate Investment Trust\u2019s annual REIT Week forum for investors. After…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1003813501","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n