REITs make mad dash down Wall Street
After a long hiatus, IPOs have made their return.
No, we are not talking about Twitter. This is a tale of two acronyms. Two acronyms that are being increasingly commingled in the name of securitized real estate. Specifically, REIT IPOs.
Twenty real estate investment trusts have completed their initial public offerings during 2013. That is the highest number of REIT IPOs since 2004 when 29 went public, according to NAREIT.
Even more REITs might have gone public if Federal Reserve chairman Ben Bernanke had not shot off his mouth about decelerating the Fed’s quantitative easing program. That spooked investors and caused them to slap shut their wallets. Fortunately, Bernanke quickly back-peddled and said, basically, “just kidding.” Warmed by the bearded one’s about-face, investors took their wallets back out and started funding new opportunities.
That is why th