Matt Werner, senior portfolio manager of REITs at Chilton Capital Management, was a guest on the latest episode of Nareit’s REIT Report podcast.
Werner emphasized the resiliency of public REITs amid economic challenges, particularly in managing debt maturities and maintaining dividend payments during periods of uncertainty.
According to Werner, public REITs are now in a position to take advantage of market volatility, with stronger balance sheets enabling them to acquire distressed assets. “We’re still waiting for the 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 way to save their company.”
However, until that moment comes, Werner said REITs will be looking to use their free cash flow to improve their properties. He underlined the importance of capital expenditures for REITs in preserving property value and attracting tenants. Werner highlighted the broad nature of capex investments across different asset sectors and geographic markets.
Looking ahead, Werner expressed optimism about the prospects of public REITs, expecting a resurgence in their performance and attractiveness to investors. “When I look at the next five to 10 years, I think it’s going to prove once again that the public REIT structure is something that should be in everyone’s portfolio,” he said.
