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REITs Reverse Course, Begin Dumping Assets


US publicly traded REITs have been big sellers of property through Q1 ’16, selling more than $15B in assets while buying only $6B.

The selling is a drastic reverse in strategy from 2015. The Q1 sales volume was higher than any of the four quarters in 2015—REITs were net buyers in the first three quarters of 2015, and were nearly equal in buying and selling during Q4.

Brad Case (pictured), SVP of NAREIT, tells CoStar the shift in tactics is to be expected. REITs take advantage of movements in the market—they buy when prices are down and sell when prices are up. 

Strong property returns also contribute to the selloff. The high returns have made it easier for private funds to raise money, giving REITs a broader group of buyers. [CoStar]