Christopher Johnston, partner & Americas REIT sector leader at EY, sat down for a video interview at Nareit's REITwise: 2025 Law, Accounting & Finance Conference® in San Antonio, Texas.
Johnston discussed current trends in REIT mergers and acquisitions (M&A). While large-scale public REIT M&A activity has slowed, he noted that transactions are still occurring in specific areas—primarily involving single asset deals or sizable portfolios, depending on the sector. He also observed that many public non-traded REITs have completed their liquidation phases, leading to a more stable environment. However, larger firms in this space remain active, focusing on share redemption plans and strategically buying, selling, and optimizing their portfolios.
Beyond traditional M&A, Johnston highlighted a rise in creative deal structures such as carve-outs, spinoffs, and strategic sales, particularly for non-core assets. Joint ventures (JVs) are also becoming more common, allowing companies to reduce risk and unlock capital without full divestment.
International expansion continues, often through innovative approaches, as companies adapt to economic uncertainty. Looking ahead, Johnston expects selective share repurchases to continue, though M&A activity may remain cautious due to market volatility and dislocation between company fundamentals and share prices. However, he anticipates a potential uptick in deal activity in the second half of the year, depending on how economic conditions evolve.