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REITs Out of the Jungle

San Francisco

Heitman Securities' Tim Pire gave an interim report card for how capital is being allocated. REITs have done a very good job with determining the cost of capital, he notes. They are "incredibly strategic" in what they buy, pay, and how they fund it--via equity capital, a JV, or selling assets. After the downturn, they could have been more aggressive in scooping up super sales. However, companies were shell shocked... "Two weeks before they didn't know if they would survive." (This lost-in-the-jungle photo helps illustrate how REITs felt at that time.) One that did take advantage of the market and went on a shopping spree was Equity Residential.