The paralysis of the market for commercial mortgage loans has given REITs a marketplace advantage over their privately held competitors who have less access to the equity markets. With the market now opening up, REITs can move faster than the competition because they largely have the cash on hand to purchase strategic new assets and position themselves with the "choice" properties in given markets or sectors.
Healthcare REITs are growing in both size and number, thanks in part to an aging population. The real estate within their portfolios varies widely, and can range from nursing homes and senior housing, to hospitals and medical office buildings. Due to the complex nature of the properties they invest in and operate, healthcare REITs may need more sophisticated tax and financial and accounting assistance. Calculating FFO (Funds from Operations) alone can be a complicated exercise when you have different types of fund generation structures.
Commercial real estate used to be limited to five core sectors: office, industrial, retail, hotel and multifamily. Now REITs are expanding into niche sectors with great economic potential. Navigating the business dynamics of new and highly specialized sectors ranging from timber to infrastructure, and specialty properties like student housing and self-storage, can be tricky.
With deep knowledge of the real estate industry, REIT accounting rules, REIT tax rules and the regulatory environment, BDO’s Real Estate practice delivers industry experience derived from our extensive work with REITs, as well as the perspective of our industry practices in key REIT sectors including retail, gaming, hospitality and leisure. We can help you address these industry trends and challenges, and capitalize on market opportunities with proactive and timely advice, independent guidance, and the power of our global network in over 100 countries.