How will REITs and the real estate markets perform in 2018? Are REITs poised for growth, or will they continue to underperform the stock market? Gain insight and analysis on the data and trends from Nareit economists Brad Case and Calvin Schnure. Read the outlook.
Institutional investors are looking at smaller REITs, smaller operating companies and secondary markets in their search for yield, says Phillip Owens, managing director at Green Street Advisors. "That bodes really well for companies that are considering going public that might be smaller today or for companies that have unique market exposures," he says.
The US Supreme Court has agreed to hear an appeal by South Dakota, which seeks to tax online sales from retailers that are beyond its borders. The case could overturn the 1992 Quill v. North Dakota ruling, which found that retailers only have to collect taxes in the states where they have a physical presence.
Hudson Pacific Properties has signed deals to sell four office properties in California for a total of $254.8 million. The properties, which are in metropolitan Palo Alto, the San Francisco Peninsula and a Los Angeles submarket, are trading to separate buyers.
D.E. Shaw & Co. has taken an activist stake in Lowe's, which could mean the investor is pushing for change in the company's strategy, management, board and spending, according to sources. Lowe's missed Wall Street estimates for its full-year profit.
Bon-Ton Stores' senior creditors are urging the department store to file for bankruptcy, sources said. The retailer has been working with advisers for several months to find options for dealing with its debt, and it still hopes to avoid a bankruptcy filing, the sources said.
Transaction volume in Europe has been higher, and prices have risen accordingly, according to Sherry Rexroad, chief investment officer for the Americas at BlackRock Global Real Estate Securities. She says Brexit is impacting fundamentals and valuations in the UK and growth has been accelerating in Northern Europe, and she is more cautious about conditions in southern Europe.
Cathy Barre, Nareit's senior vice president for policy and politics, discussed the many provisions in the Tax Cuts and Jobs Act that affect REITs in this podcast. Among the changes: Shareholders get a lower effective pass-through business income tax rate, and REITs are among those entities that can elect out of the limitation of business interest deductibility.
Walmart-owned warehouse retailer Sam's Club will close 63 of its 660 stores and turn as many as 12 of them into e-commerce distribution centers. The closures will affect about 10,000 employees, some of whom will be offered positions at other stores, the company said.
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