You Can't Take The Risk Out Of Rei Ts
Real estate investment trusts are back. Slammed in the mid-'70s, battered in the early '90s, REITs have risen again, transformed this time into investment vehicles that could have a salutary effect on the often vicious real estate cycle. The promise is of a new way to finance, value, and manage commercial and residential real estate that could lead to a stabler market. While the REITs of the 1980s and early 1990s were built on private bank financing, today's REITs get public financing via IPOs. Permanent investor equity, active owner-managers, and new accountability to public shareholders distinguish the new REITs from their ancestors. That is the theory, and it makes sense, up to a point.
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