Episode 376: Listed REITs Offer a Compelling Opportunity Versus Equities, Private Real Estate: Principal
Nareit's REIT Report Podcast
English - September 28, 2023 00:00 - 14 minutes - 20.7 MB - ★★★★ - 34 ratingsInvesting Business commercial real estate cre Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Todd Kellenberger, REIT client portfolio manager at Principal Asset Management, was a guest on the latest episode of Nareit’s REIT Report podcast.
Kellenberger noted that listed REITs currently trade at significant valuation discounts to both equities and private real estate. He pointed out that the earnings price multiple of REITs versus equities today is over two standard deviations away from the long-term mean—"a level that's even cheaper than what we saw during the GFC, particularly for U.S. listed REITs.”
Meanwhile, the change in valuations for private real estate have been slower than for listed REITs, given the appraisal-based methodologies and limited price discovery in today's transaction markets, he added.