I'm a developer, mainly active in self storage and industrial. In recent years storage has been on a bull run, REITs getting aggressive purchasing high quality assets at low caps. Most of the major REITs have property management companies as well, which is obviously important in branding the site once the project is complete. Ideally, the same company you use for prop management is the first in line to acquire upon stabilisation. I'd like to get a better sense for how the rating agencies look at REITs, particularly the self storage REITs. Just a bit clueless in assessing their financial wellbeing, and understanding how much they're likely to pull back (if at all) with acquisitions when there is a downturn. Any info would be greatly appreciated!
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As simply as possible, its just a giant crossed debt vehicle with an additional variable of Market Cap. They can use market cap to raise debt at the corporate level to fund acquisitions.
Then in terms of health rather than just Loan to Value on a property your REIT has Total outstanding debt to total market value of assets along with total market cap.
REITs in general just have 100 different metrics that they care about, FFO/AFFO/Same store growth ect. that make it almost a different business.
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