Investing in a changing landscape
The ability to complete a deal depends on several essential factors: rate considerations, quality of the underlying investment properties, cap rates and overall market conditions. Organizations are facing the need to create yield, as well as the ongoing challenges of raising capital. Competition is becoming increasingly fierce, as organizations now compete not only against other REITs, but also against pension funds, insurance companies and PE firms, and an increasing number of foreign investors.
Within this complicated landscape, there is significant opportunity as investors have the ability to diversify, an attractive feature provided by REITs. Geographic diversification in similar properties, intensification opportunities with existing properties or development projects have been popular. Recent investment in mixed-use properties has been occurring in some urban markets which has the potential to yield strong returns. And with private companies continuing to invest in the market, there is confidence that the real estate and construction industry remains a viable option for significant and long-term investment.
At BDO, we help our Investment and REIT clients take advantage of these opportunities and tackle the issues they’re facing, every day. Along with traditional audit and tax services, which include financial reporting and compliance support, we also offer tax planning, valuation and internal control support services – helping our clients in countless way better understand, grow, and protect their assets.