Focus on REITs: Public Real Estate Companies' Advantages Will Overpower the REIT Bear Market

By Panovka, Robin | Real Estate Issues, Winter 2000 | Go to article overview

Focus on REITs: Public Real Estate Companies' Advantages Will Overpower the REIT Bear Market


Panovka, Robin, Real Estate Issues


The current REIT-related news centers on the day-to-day performance of REIT stocks, the excessive restrictions imposed by the REIT rules, methods for retaining and compensating REIT executives, and predictions for when the REIT bear market will end. Often forgotten, however, as the REIT industry licks its bear market wounds, are the long-term advantages of publicly traded, corporate real estate operating companies, or REOCs. For all of their shortcomings and maturational problems, publicly-traded REITs represent a new breed of investment vehicles that have noteworthy virtues and fundamental advantages over many of the older methods of investing in real estate.

Take, for example, the perspective of the individual investor who bought interests in syndicated limited partnerships in the 1980's and whose plight is once again making news. There can be little doubt that the public REIT or REOC offers individual investors more liquidity, better governance and accountability of management, and better reporting and transparency than the syndicated limited partnership structure.

And the same is often true from the perspective of institutional investors. Take the admittedly crude example of an institutional investor based somewhere in the Midwest who would like to allocate some funds to office buildings in the Southeast. The investor now has a choice between investing in the publicly-traded stock of any number of REITs which focus on the sector or utilizing one of the various private market alternatives that has historically been available. Investing in the public stock will often prove advantageous for a number of reasons:

Instant access to information required to make the investment decision SEC filings on the REIT that provide detailed information, including audited financials, can be pulled off the Internet in seconds.

Speed of execution and liquidity - depending on the size of the investment, the stock can be purchased and sold almost instantly with a few clicks of a mouse.

Assurance of getting future reports on a regular basis - public companies are required to file with the SEC publicly available quarterly reports, including financials, and to disclose all material events. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Focus on REITs: Public Real Estate Companies' Advantages Will Overpower the REIT Bear Market
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.