Yoel Kranz, partner and co-chair, REITs and real estate M&A at Goodwin, sat down for a video interview at Nareit's REITwise: 2025 Law, Accounting & Finance Conference® in San Antonio, Texas.
Kranz discussed the evolving role of activist investors in the REIT industry. He noted that activists were largely absent from the sector until about a decade ago, when traditional activist strategies—such as acquiring small stakes, demanding change, and pushing for board seats—began gaining traction.
Recently, activism has taken on broader forms, including aggressive short sellers and hostile takeovers, which can pressure companies and disrupt operations.
Kranz emphasized that readiness is crucial for companies facing potential activist engagement. He advises clients to have a clear communications strategy, defined roles for board and public relations contacts, and an internal understanding of vulnerabilities in governance, shareholder sentiment, and strategic direction. Companies must be prepared to present a stronger long-term vision than any activist’s proposals.
Regarding market conditions, Kranz observed that despite REITs trading at discounts to perceived net asset values (NAV), significant M&A activity remains limited. Bargain buyers haven’t materialized as expected post-pandemic, and deals are only occurring in select sectors like health care or strip centers where asset values are more stable.