Nearly all net lease focused REIT have reported 3Q earnings including the largest portfolio in the sector. Disclosures wrap up next week with a few remaining small-cap REIT.
Most REIT are locked and loaded with ample and attractively priced forward equity to fund future investments - which may drive down cap rates for sizable, quality opportunities (particularly sale/leaseback portfolios).
Although gains from the late summer equity price surge paired back materially for multiple industry stalwarts (O; NNN) in the last three weeks, the vast majority of net lease REIT have experienced impressive trailing-twelve-month total returns.
Challenging three weeks for Realty Income & NNN REIT:
Realty Income’s announcement of its new private capital management business (focused on institutional equity in an open-ended fund vehicle investing in lower initial yielding net lease opportunities) will be something to watch; particularly how it impacts the REIT’s trading multiple and alignment with shareholders.
The Observer is excited to return to its normal programming in the coming weeks!
As always, thanks for reading and reach out anytime!
Cheers,
Sean
