There are a few considerations for investors who want to make sure that REITs are the right investment for a retirement portfolio. These include diversity, liquidity, the expected rate of inflation and the REIT's dividend.
Swedish pension fund Alecta has finalized the $2.1 billion sale of a 47 mixed-asset property portfolio in the US and UK. Blackstone acquired 21 of the US assets for $1.7 billion, while an unnamed global investment bank purchased the 26 UK assets for about $375 million.
Fees are a concern for investors in REIT exchange-traded funds, but they should also be focusing on what assets these funds are holding, Evercore's Steve Sakwa says. Storage has been the best-performing sector, he wrote in a note recently, while lodging REITs are expected to "continue to lag moving forward."
GEO Group is acquiring Community Education Centers, a provider of rehabilitative services for prisoners, for $360 million in cash. GEO will own or manage 98,000 beds, including approximately 7,000 community re-entry beds, when this deal is finalized.
First Potomac Realty Trust has sold an industrial complex and an office building in Northern Virginia to two separate buyers for a total of $88.7 million. With these sales, the REIT has completed $295 million in sales of non-core assets and is nearing its goal of $350 million in dispositions.
There is a strong sense of collaboration among Australian REITs as they work toward sustainability goals, says Bruce Precious, national manager for sustainability and property services at Australia's The GPT Group. "Sustainability goals need so many stakeholders and market participants that the only way we can influence the market is when the industry works together," he says.
The US Court of Appeals for the District of Columbia upheld the Treasury Department's right to sweep profits from Fannie Mae and Freddie Mac, which have been in conservatorship since the financial crisis. The plaintiffs, investors in the two companies, may receive monetary damages, but the larger question of what will become of Fannie and Freddie under the Trump administration is unknown.
Developer Fort Monmouth Parcel B Redevelopment will purchase an 89-acre tract of land for $22.1 million to redevelop it into Freedom Pointe. The project will include a total investment of $130 million for 350,000 square feet of retail and 40,000 square feet of office space, along with space for 302 townhomes from Ryan Homes.
Ramco-Gershenson Properties Trust has acquired Providence MarketPlace, an outdoor shopping center in Mount Juliet, Tenn., for $114.7 million. The 828,000-square-foot shopping center, 20 miles east of Nashville, is in the second-fastest-growing county in the state.
Property consultant Rahim & Co. says the Malaysian property market, including office and retail space, is facing a continuing oversupply problem. In commercial real estate, more than 15 million square feet of space will be added to the market in the next five years, but the office occupancy rate is now less than 80%, which could affect pricing.
- Page 1