How will the Federal Reserve’s policy affect real estate investors going forward? Greg Genovese, president of securities at Thompson National Properties, and Jordan Sadler, REIT analyst at KeyBanc Capital Markets, shared their outlooks and stock picks.
Genovese told CNBC that the commercial real estate markets are near a bottom.
“So it’s a good opportunistic time to start investing in real estate,” he said.
“We’re in the land of uncertainty and mixed signals right now.”
However, he warned investors to be careful when investing, saying they should watch where they're investing, what asset type they're investing in and how much leverage they're going to put on those particular properties.
“Overleverage brought us to this situation, but it’s going to be an appropriate amount of leverage in the right target areas that will get us out of it,” he said.
In the meantime, Sadler told investors that there are opportunities to make money in the REITs.
“After three years of being more bearish on the group, we’ve finally become more optimistic,” he said. “There’s a bottoming process about to take place in fundamentals, and valuations are actually fair.”
Sadler Likes:
DuPont Fabros
Camden Property
Entertainment Properties
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CNBC Slideshows:
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Market Point/Counterpoint:
- Buy Homebuilders on 10-15% Dip: Analyst
- Good Buy Opportunity for Equities: Top Economists
- Market Trend Has Turned Negative: Stock Picker
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CNBC Data Pages:
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Disclosures:
Keybanc Capital Markets has investment banking clients who own shares of DFT and EPR.
Keybanc has managed or co-managed a public offering of equity securities of EPR within the past 12 months. Keybanc expects to receive or intends to seek compensation for investment banking services from CPT within the next three months.
No immediate information was available for Genovese or his firm. ______________________________
