Morrison & Foerster REIT co-chair Justin Salon discusses the REIT IPO market in the Nareit article “REIT Legal Expert Sees Challenging IPO Market,” which follows MoFo’s release of its 2019 REIT IPO Guide.
Mr. Salon noted that the REIT market has seen just a single IPO this year, and “typically, you have a handful,” he said. He pointed to the disconnect between public and private market valuations and the fact that private market liquidity offers “a pretty good sense of what they can get.” The IPO market, on the other hand, puts sponsors “at the whims of the market,” with no clear idea as to where pricing might head.
“There’s a lot less certainty if you go down the path of an IPO, [especially] if there is a robust market on the private side,” Mr. Salon said.