Thursday, August 22, 2013

Changing Perception

I suspect most people have now read this Bloomberg article on AR Capital that was published last week.  The complimentary tone didn't surprise me, but what caught me off-guard was that even Green Street Advisor's Jim Sullivan was almost positive on non-traded REITs - or, at least not dismissive and negative.  I think this passage and quote may explain his change:
Sullivan expects such transactions (non-traded REIT liquidity events) to continue because of the amount of nontraded REITs in the business that will need to list their shares on stock exchanges or merge with another company as the end of their investment life approaches. Nontraded REITs eventually have to return shareholders’ investments after a set amount of time.

“There’s going to be a lot more M&A activity,” he said.

Ah yes, the potential for business, a strong attitude balm.

1 comment:

Anonymous said...

Can you elaborate on this? Green St is a research shop, not an M&A shop, so how is a merger "new business" for them? Are people buying research reports from them?

Or do they do fairness opinions on mergers?