THE PERSPECTIVE OF BUYSIDE MANAGERS AND ANALYSTS: WHAT ADVICE DO THEY HAVE FOR CANADIAN REITS AND REOCS?
A wide ranging discussion among portfolio managers and real estate analysts on issues and trends that they see evolving within Canadian public real estate companies.
- Do we need more REIT IPOs? If so, what characteristics should they have, e.g. internal vs. external management, diversification vs. pure play, foreign assets, scale, asset quality?
- Why should investors buy more shares or units of public real estate companies now?
- Under what circumstances should they raise equity?
- Would a common AFFO definition assist your decision-making?
- Does structure matter, e.g. REIT, REOC, FAIT, ETF? What are the advantages and disadvantages of these structures for a REIT or REOC? For investors? For issuers? What are the implications for liquidity? Governance? Growth potential? Risk? Cost to run? Cost to issue? Cost to trade?
- What is the performance track record of these vehicles? Does structure affect performance? Are different types of investors attracted to different types of structures? Institutional vs. retail? Taxable vs. non-taxable? Domestic vs. foreign?
- How does management compensation affect performance and your decision to invest or recommend?
- What price should REITs or REOCs pay for assets in this market?
Stephen Sender, Managing Director, Industry Head, Real Estate, Global Investment Banking, Scotiabank
Anish Chopra, Managing Director & Portfolio Manager, TD Asset Management
Bill Crow, Managing Director, Real Estate Equity Research, Raymond James & Associates
Andrew Moffs, President & Portfolio Manager, SRE Securities Canada Inc.
Andrew Nasr, Executive Director, Portfolio Manager, Middlefield Capital Corporation