A roundtable examination of strategies for de-leveraging, the industry’s pace of recovery, and what to expect going forward.

Recorded June 1, 2009

90 minutes

Background | Agenda | Panelists | Get log-in

Background

The REIT industry currently is undergoing a massive de-leveraging effort. Over the last several months, company after company has gone to the market with common stock offerings, raising more than $11 billion thus far in 2009.

On June 1st, SNL invited four REIT industry experts to a roundtable discussion of the positive and negative aspects of the offerings as well as the follow-on effects the capital raising will have for the industry.

In the engaging conversation that followed, listeners benefited from the multiple expert perspectives put forward on the current state of de-levering in the REIT industry and what to expect over the next 12-24 months.

Agenda

• -	What are the implications of the equity offerings for investors? Do the benefits of a stronger balance sheet outweigh the drawbacks of dilution?
  -	Why have some companies outperformed the market since their offerings and others have not? Are we starting to see the strong separate from the weak?
  -	How does raising equity affect a company’s ability to access other forms of capital? For example, is there a direct effect on the unsecured debt market of these offerings?
  -	What other routes are companies considering besides raising common equity? Are the debt markets becoming more a favorable option?
  -	Should we expect to see REITs raise their dividends this year as they shore up their balance sheets?
  -	Simon Properties has now gone to the market twice. Are REITs amassing dry powder to make acquisitions when opportunities present themselves?

Panelists

Rich Anderson, Senior Real Estate Analyst, BMO Capital Markets

Rich Anderson joined BMO Capital Markets in July 2005, and has covered the Real Estate Investment Trust (REIT) industry for 14 years as a sell-side equity analyst. Prior to BMO, Rich was the co-head of REIT research and trading at Maxcor Financial Group.

Ralph Block, author of “Investing in REITs” and editor of “The Essential REIT” newsletter

Ralph Block, author and commentator, has been a REIT investor since 1972 and was a REIT portfolio manager from 1995 until his retirement in 2007.

Michael Grupe, Executive Vice President, Research and Investment Affairs, NAREIT

Michael R. Grupe, in his role as EVP at The National Association of Real Estate Investment Trusts, directs all research and investor outreach activities related to the collection and distribution of statistics on industry growth and development, analysis of real estate investment performance and communication with investors, policymakers and the public.

Sumit Roy, Executive Director, Real Estate, Leisure & Lodging Group, UBS Investment Bank

Sumit Roy focuses on strategic advisory and financing assignments for real estate and lodging companies for UBS Investment Bank. The sum total of his strategic and capital transactions including REIT re-capitalizations exceed $78 billion.

Moira Dickinson (moderator), Senior Industry Editor – Real Estate, SNL Financial

Moira is a senior industry editor at SNL and has focused on covering the REIT industry for the past three years. Her coverage has focused on M&A, capital raising and earnings trends among REITs as well as issues in the wider commercial real estate industry.

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