Steve Loughman, Managing Director of Raymond James, participates in a video interview during Nareit’s REITWISE: 2024 Law, Accounting & Finance Conference, held March 19-21 in Hollywood, Florida.
Loughman shares insights on the current state of the real estate capital markets and predicts future trends. Reflecting on the health of the market, Loughman noted continued challenges and pointed to improvements compared to previous years. He emphasized the disparity between the equity and debt perspective, highlighting the strength in the debt market with issuances of more than $11 billion since November.
Loughman expects a positive impact on equity issuance following a potential rate cut by the Federal Reserve and expects an increase in M&A activity and IPOs in the near future. He pointed out that real estate generally performs better as rates fall, leading to improvements in equity pricing and share prices.
With regard to private real estate markets, Loughman expressed confidence in the recognition of new values driven by interest rate changes. He sees a convergence between public and private market revaluations, expecting an increase in transaction activity as real estate values align more closely.
