Fitch Publishes REIT Report Quarterly for 2Q'15
02 July 2015 - 8:01AM
Business Wire
Fitch Ratings has published its REIT Report Quarterly for
second-quarter 2015, which highlights research during the past
quarter.
On June 24, 2015, Fitch published a special report stating that
macroeconomic and property sector themes are expected to define
REIT credit trends in the near to medium term.
On May 28, 2015, Fitch published its quarterly liquidity report
stating that the median liquidity coverage ratio for select U.S.
equity REITs was 1.7x for the April 1, 2015 to Dec. 31, 2016
period, down slightly from 1.9x from last year. REITs' cost of debt
capital remains attractive by historical standards; however,
unsecured bond spreads have remained in the 130 bp - 140 bp range
since the beginning of 2015, above the 100 bp - 110 bp range last
seen in August 2014.
On May 5, 2015, Fitch published a special report stating that
the recently announced acquisitions of Excel Trust and Associated
Estates may be harbingers of the next wave of U.S. REITs going
private in a decade. The last meaningful period of REIT
privatizations occurred between 2005 and 2007, when 30 REITs were
acquired, representing $123 billion of enterprise value. Current
market conditions are setting the stage for another round of
acquisitions, potentially of a similar magnitude. If the last wave
was any barometer, REIT public-to-private transactions could number
30-40 in the next few years. REITs may be more willing to entertain
offers this time around given the sustained rally in fundamentals,
share prices approaching all-time highs and above-average
multiples.
Other items in this edition of Fitch's 'REIT Report Quarterly'
include:
--An overview of recent rating actions;
--Summaries of recently published REIT reports and criteria;
--Links to recent Fitch research.
'REIT Report Quarterly' is available by clicking on the above
link or at 'www.fitchratings.com' under the following headers:
Ratings and Research >> Corporate Finance >> REITs
>> Research
Additional information is available at
'www.fitchratings.com'.
REIT Report Quarterly (2Q15)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867816
Related Research
1Q15 U.S. Equity REIT Liquidity: Solid Against Plentiful Capital
Backdrop
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866291
Macro and Sector Stories Driving REIT Credit Narrative
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867775
U.S. Equity REITs: The Privatization Fuse Is Lit (Capital
Availability and Relative Pricing Reminiscent of Last Wave)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865364
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