Video of the Day: Don’t Run from REITs Over Fed Rate Hike Fears
Stock volatility has got many investors and traders worried. Those in real estate, however, don't need to be, says CenterSquare CEO Todd Briddell, who heads the real estate investment of BNY Mellon.
For the most part, he says, there's very little change in private equity real estate transactions in the US, calling the real estate market healthy as a whole. But the small pick-up in credit spreads may impact cap rates in 2016.
"In the REIT space, however, I think this impact and this lift and volatility is beginning to get investment bankers pretty excited because of the impact on pricing that we've seen," Bridell says. "REITs have traded off significantly during this time period."
But what about those recently falling REITs? Briddell attributes it as a "giveback to last year's outperformance," as profit is playing a large role in the sell-off and investors are panicking over the pending Fed rate hike.
If he were a Chinese investor, Briddell says, he would accelerate his real estate purchases in America and even London. That's because to Briddell, the asset class offers diversification and income. [TheStreet]
