Matt Werner, senior portfolio manager for REITs at Chilton Capital Management, was a guest on the latest episode of Nareit’s REIT Report podcast.
Werner emphasized the resilience of public REITs amid economic challenges, especially in managing debt maturities and maintaining dividend payments during periods of uncertainty.
According to Werner, public REITs are now positioned to capitalize on market volatility, with robust balance sheets enabling them to acquire distressed properties. "We're still kind of waiting for the sort of big moment for public REITs to go out and make significant acquisitions or for private companies to bite the bullet and decide that going public is the only kind of way to save their company."
Until that moment arrives, however, Werner noted that REITs are increasingly looking to use their free cash flow to improve their properties. He underscored the importance of capital expenditure for REITs in preserving property value and attracting tenants. Werner highlighted the broad-based nature of capex investment across various property sectors and geographic markets.
Looking ahead, Werner expressed optimism about the prospects for public REITs, foreseeing a resurgence in their performance and attractiveness to investors. “When I look at the next five to 10 years, I think that this is going to once again prove that the public REIT structure is one that should be in everyone’s portfolio,” he said.