Steven Roth, CEO of Vornado Realty Trust, says the REIT has taken to heart the notion that pure-play business strategies are favored by investors. Therefore, the REIT will trim some of its retail center holdings.
This month Vornado Realty Trust CEO Steven Roth said he was considering splitting off the REIT's Washington, D.C., portfolio. Some industry analysts say the properties would be better off staying with Vornado, at least until some of them are updated and stabilized.
Vornado Realty Trust is selling a land parcel in Manhattan's Harlem submarket for $65 million plus brownfield credits. The REIT had planned to build an office tower there. The sale is part of Vornado's strategy to sell off noncore holdings.
A growing number of U.S. REITs are forming partnerships with foreign-based companies to take advantage of growth opportunities and to diversify returns. Some of the larger REITs following this strategy include Simon Property Group, Kimco Realty, Public Storage and W.P. Carey.
Vornado Realty Trust Chairman Steven Roth has promised shareholders that the REIT will take steps to bolster its flagging share price. Investors and analysts took heart from Roth's promises, which he outlined in a letter to shareholders. The tone is different, indicating a receptiveness to hearing possible solutions. Roth also said the REIT would start holding quarterly earnings calls.
Reflecting on the REIT industry's impact on the investment marketplace, Steven Roth, chairman of Vornado Realty Trust, says listed REITs have made "liquid real estate investment" possible. "The shares of listed REITs are much more liquid, much more tradable, much more price transparent than the real underlying real estate. So that is an enormous advantage," Roth says. The access to capital available to public REITs also proved an enormous benefit after the Great Recession. "The first harbinger of a recovery was public real estate became liquid, capital markets opened up and that was a wonderful thing for listed REITs."