REITs have been rather quiet in the capital markets for some time now. Rising interest rates have made debt more expensive. Trading prices have reflected steep discounts to “net asset values”, or “NAVs”. But REITs, our favorite investment vehicle and favorite creature of the Internal Revenue Code, are alive and well. In this episode of What the REIT?!, we remind ourselves and others of some of the great ways REITs can be used in investment structures. We also spend some time with “prohibited transactions,” as we find REITs spending a fair amount of time considering the repositioning of their portfolios or the raising of capital through property dispositions and other monetization events (rather than debt or equity offerings). Lastly, we would be remiss if we did not discuss another subject near and dear to Professor Trust—the intersection of REITs with renewable energy and income tax credits, which has been brought to the fore with the Inflation Reduction Act. We hope you enjoy.
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