Adam Cohen, Senior Vice President of Tax Safehold Inc, (NYSE: SAFE), participated in a video interview during Nareit’s REITWISE: 2024 Law, Accounting & Finance Conference, held March 19-21 in Hollywood, Florida.
Cohen discussed the key obstacles facing tax professionals in the real estate sector, and emphasized the critical need for streamlined data management and analysis. He highlighted the industry’s struggle to modernize amid niche transactions and resource limitations.
According to Cohen, “the biggest issue is access to data and organization of data.” He said real estate lags behind other sectors in data management, impacting both SEC and tax reporting. He said the sector’s weak operating model is a challenge, lacking the workforce and budget needed for large-scale changes.
Cohen emphasized the industry’s manual approach in an increasingly automated landscape, with limited resources hindering the training of new talent. He emphasized the complexities of real estate transactions, each unique and nuanced, in complicating automation efforts.
With respect to long-term incentive plans (LTIPs) within real estate, Cohen distinguished between LTIPs and other equity compensation methods such as restricted stock units. While senior executives often opt for LTIP, junior employees lean toward restricted stock units, demonstrating flexibility in incentive offerings, he said.
