Thank you for the candid opinion DD. I echo your thoughts and am in the same boat (although My exposure to REITs/INVITs is pretty significant…Brookfield and Embassy followd by IRB and Indigrid)
I am also of the opinion that these are long term assets which require a longer gestation period and the tax announcement is a short term deviation. Ultimately what matters is the underlying growth of the asset holdings in yield and distribution. That is the major differentiation as compared to pure debt (e.g. Bonds)
On corporate governance, REITs are structured investment class where there is a lot of regulatory oversight (hence the REIT laws took time to be drafted). Globally they have proven to be powerful compounding asset classes.
On Embassy will be observing as of now. No change in strategy as of now. I personally dont see Blackstone selling as a major negative. REITs are mainly for income investors (individual) + large institutional pension funds who want annuity returns. Blackstone being a Private Equity player had to cash out at some point to redirect funds to other emerging assets. What would be more important would be to see which large investors take Blackstones position. Bain capital looks interesting
PS: These are just my thoughts at this point. I could be wrong. Please use your discretion. Thank you
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