News Column

Fitch Publishes REIT Report Quarterly for 2Q'14

July 7, 2014



NEW YORK & LONDON--(BUSINESS WIRE)-- Fitch Ratings has published its second-quarter 2014 REIT Report Quarterly, which highlights research during the quarter.

On June 2, 2014, Fitch published its midyear outlook stating that the first six months of 2014 have been smooth sailing for U.S. equity REITs, with little change likely for the second half of the year. Fitch expects U.S. equity REITs will continue to have strong access to capital and solid liquidity. Additionally, property-level fundamentals should improve moderately across most asset classes.

On May 27, 2014, Fitch published its liquidity report stating that the median liquidity coverage ratio for select REITs is 1.9x for the April 1, 2014-Dec. 31, 2015 period, slightly down from the 2.2x ratio for the April 1, 2013-Dec. 31, 2014 period. None of the 62 issuers included in Fitch's latest report have sub-1.0x base case liquidity coverage, a first since we began publishing these reports in 2007.

On April 29, 2014, Fitch published a special report stating that share buybacks are becoming more appealing for U.S. equity REITs, though they come with additional risks over time for bondholders. REIT stocks outperformed broader indices during this past quarter. That said, trading levels are generally below net asset value, making share repurchases an intriguing use of capital, a trend that Fitch views negatively.

Other items in this edition of Fitch's 'REIT Report Quarterly' include:

--An overview of recent rating actions;

--Summaries of recently released REIT reports and criteria;

--Links to recent Fitch research.

'REIT Report Quarterly' is available by clicking on the link or at 'www.fitchratings.com' under the following headers:

Ratings and Research >> Corporate Finance >> REITs >> Research

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research:

--'2014 Midyear Outlook: U.S. Equity REITs' (June 2, 2014);

--'1Q14 U.S. Equity REIT Liquidity Update: Marching to the Beat of the Same Drum' (May 27, 2014);

--'REIT Share Buybacks More Palatable' (April 29, 2014).

Applicable Criteria and Related Research: REIT Report Quarterly

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=751137

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Steven Marks

Managing Director

+1 212-908-9161

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Anil Jhangiani

Senior Director

+44 0203 530-1571

or

Kalai Pillay

Senior Director

+61 8256-0388

or

Jose Vertiz

Director

+1 212-908-0641

or

Media Relations, London

Peter Fitzpatrick, +44 20 3530 1103

peter.fitzpatrick@fitchratings.com

or

Media Relations, New York

Sandro Scenga, +1 212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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