Equity research covering public REITs...career path and exit opps???

00boom00's picture
Rank: Senior Chimp | 16

Can anyone please expand on the exit opportunities for ER covering REITS?

I have several questions:
1) Is ER competitive / desired experience in the RE industry?
2) Is transitioning to REIB, REPE, or corp equity research possible from RE research?
3) Does covering publicly traded REITS change the answer to the questions above?
4) What are the best and most logical transitions / exit opps from covering REITS?

All feedback and insight is greatly appreciated.

Comments (8)

Aug 14, 2014

Interested as well, especially in terms of exit opps

Aug 14, 2014

I would assume private equity in real estate may be possible. Brookfield got 175B AUM, over 130B+ is in real estate investments via private equity funds.

Dec 12, 2016

Bringing this thread back up to see if anybody has insight into the questions posed by OP.

Array

Apr 26, 2017

Bump

Best Response
Apr 26, 2017

Hi 00boom00,

I covered public REITs before jumping to the buyside. Answers are below:

1) Is ER competitive / desired experience in the RE industry?
--- It was very competitive to get in. The experience you get is great. Modeling REITs focus have a lot more acquisition/disposition forecasts than other industries because in general that's how they grow. You also get exposure to a lot of macro-level data because broader industries highly impact REITs. For example, one of the sub-industries I covered was shopping centers. So I had to follow the retail industry closely to see what retailers were strong and what retailers were weak (like H&M), and we can use that data to understand the quality of the shopping centers inside the REIT portfolios.

2) Is transitioning to REIB, REPE, or corp equity research possible from RE research?
--- I jumped to an Asset Management firm. I still follow REITs closely, but I don't use much REIT knowledge in this role. The experience helped me get my foot in the door.

3) Does covering publicly traded REITS change the answer to the questions above?
--- Nope.

4) What are the best and most logical transitions / exit opps from covering REITS?
--- There are a lot of exit opps from covering REITs if you want to stay in a similar industry. I know a few that ended up joining the investor relations teams at REITs they covered. Others joined the M&A teams. Some jumped to buyside funds and maintained their REIT niche.

Hope this helps!

    • 3
Jun 9, 2017

I'm reviving this thread because of a unique situation. I would love to get feedback from the board, especially those like jeremysg who have covered public REITs.

I have been recruiting for a role in commercial real estate, either acquisitions or Asset Management. I'm wondering if a role covering public REITs on the sell side would move me closer to getting a role in commercial real estate.

Has anyone seen someone move for REIT ER to Acquisitions or Asset Management at an owner/operator or REIT?

Thanks!

Jun 13, 2017

I work at a sell side shop covering listed REITs and can say that moving to acquisitions or Asset Management is definitely a possibility. Some experienced analysts moved to different REITs that they covered while here. Other analysts moved to REIT dedicated funds. REIT dedicated hedge funds are also common.

I've yet to see an employee from my shop end up in REPE, but that's not to say it can't happen. Just seems that working for a REIT or continuing to analyze REIT securities is more common given the experience you gain on the sell side.

Jun 18, 2017
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