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Nareit is pleased to welcome Administradora De Activos Fibra Inn SC as its newest corporate member
Administradora De Activos Fibra Inn SC is a Mexican REIT
develop and lease a group of hotel properties in Mexico
Fibra Inn owns a portfolio of high-quality properties that are designed to serve business travelers
are companies that own or finance income-producing real estate across a range of property sectors
These real estate companies have to meet a number of requirements to qualify as REITs
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REITs historically have delivered competitive total returns
steady dividend income and long-term capital appreciation
Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns
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To Be or Not to Be a REIT?Under New Tax Law the Question Is
To Be or Not to Be a REIT?REITs with significant development
redevelopment and other capex needs could benefit from de-REITing
reliable REIT is facing an existential choice
Should it abandon its tax-free structure to meet pressing capital needs
Or hang on to a status that gives it access to its very own set of investors
In a letter to investors published this week
Third Avenue Real Estate Value Fund portfolio managers Jason Wolf and Ryan Dobratz argue that some U.S
REITs should consider converting to a regular corporation
to “maximize the value for shareholders over the long term.”
a company must invest at least 75 percent of its assets in real estate and get 75 percent of its gross income from sources related to property
which are required to distribute at least 90 percent of their earnings as dividends
Converting to a C corp would mean paying the new corporate tax rate of 21 percent (likely to be substantially lower with deductions)
REITs are often forced to sell assets or turn to sometimes volatile capital markets to finance expansion and meet other needs
they could instead retain their earnings for capital expenditures
They could also use any extra cash to buy back stock
which can trade at a discount to their net asset value due to rising interest rates and other factors
with the sharp decline in the corporate tax rate from 35 percent
the transition would be less jarring than before
“REITs that are trading at a discount may not be interested in raising capital at their current levels
so it’s certainly possible that they explore models that enable them to retain earnings,” said David Bonser
a partner at the Hogan Lovells US LLP law firm who has advised REITs for more than two decades
But “certain REITs with significant development
redevelopment and other capex needs could undoubtedly benefit from de-REITing,” Wolf and Dobratz write
They say logical candidates for conversion include mall REITs
such as Seritage Growth Properties and Macerich Co.
which need cash to transform space into more-profitable “mixed used” concepts that include fitness
They also cite office REITs with large capex programs to refurbish properties as tenants demand “live-work-play” environments
such as Vornado Realty Trust and JBG Smith Properties
A conversion by Seritage “seems like a no-brainer to us,” Dobratz said in an interview
“We think the company would be in a better spot in five years if they made a decision to retain the capital
reinvest in the business and accelerate the pace of putting their legacy Sears and Kmart boxes to a higher and better use.”
Macerich and Vornado didn’t respond to requests for comment
chose to pivot from simple real estate ownership and was forced to convert to a regular corporation
few if any companies that still qualify as REITs have made the leap
Conversion has generally gone in the other direction
with corporations flocking to the REIT structure
The trend has tapered off in recent years as the Internal Revenue Service has cracked down on spinoffs
That didn’t stop Alexander & Baldwin Inc.
The change in tax status spurred a one-time special dividend to shareholders totaling $783 million
REITs tempted to become ordinary corporations may be wary that the tax rate could change again
a company that converts can go back to the REIT structure after five years
once sufficient investments have been made and assets put to new purposes
Another concern is the stock-price decline that would probably follow a company’s removal from REIT indexes and the universe of dedicated REIT investors
Third Avenue argues that any short-term declines are likely to be countered by substantial long-term gains if the conversion makes sense for the company
Wolf and Dobratz admit their proposal is “no doubt a contrarian idea” but say it sometimes takes a bold move to generate outsize returns
To contact the reporter on this story: Gillian Tan in New York at [email protected] To contact the editors responsible for this story: Daniel Taub at [email protected] Peter Jeffrey
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He is survived by his children Zoe (Ray) Weakly
and Jill (Glenn) Wehrheim; step children Jeff (Tracy) Dougherty
and Tricia Durbin; grandchildren Kelly Wehrheim
Rachel (Tyler) McIver and Emma Novack; great grandchildren Mayda and Makayla Wehrheim
Oakley and Sophie McIver; 11 step grandchildren; 5 step great grandchildren; twin brother James (Charlene) Van de Riet; brother-in-laws; sister-in-laws; nieces; nephews; and cousins
Joe is preceded in death by his parents Robert J
(nee Dickneite) Van de Riet; 1st wife Mary Elizabeth Van de Riet
He was past president of Waterloo Sportsman's Club; County Commissioner; co founder of Dirty Dozen Fishing Club; founder and former Co-Owner of J & J Sewer and Septic Service and Econo John's; and a member of St
the family prefers memorial contributions to:Hospice of Southern Illinois or Donor's Choice
2024 at Quernheim Funeral Home in Waterloo
Patrick Catholic Church - Tipton in Waterloo
IL Father John Kizhakedan officiatingInterment will immediately follow at Immaculate Conception Cemetery - Madonnaville in Waterloo
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He was past president of Waterloo Sportsman’s Club; County Commissioner; co founder of Dirty Dozen Fishing Club; founder and former Co-Owner of J & J Sewer and Septic Service and Econo John’s; and St
Visitation will take place from 8-11:30 a.m
October 7 at Quernheim Funeral Home in Waterloo
Patrick Catholic Church – Tipton with Father John Kizhakedan officiating
Interment will immediately follow at Immaculate Conception Cemetery – Madonnaville
the family prefers memorial contributions to: Hospice of Southern Illinois or Donor’s Choice
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As bankrupt Steward Health Care faces ongoing Congressional and grand jury probes over the failed management of its hospitals in the United States
OCCRP has found new evidence that Steward’s landlord and a private equity firm
working alongside the hospital chain’s CEO
created deals that severely hamstrung Steward but enriched themselves
The end result was a zombie hospital chain that chronically lost money but lived on for years
propped up by the landlord with hidden cash infusions that made Steward look like a thriving business even after executives privately conceded it was insolvent
More than 295,000 documents obtained by OCCRP
give new insight into how private equity firm Cerberus Capital Management
Steward’s landlord Medical Properties Trust (MPT)
and longtime CEO Ralph de la Torre saddled the health care operation with billions of dollars of unsustainable debt
Cerberus and de la Torre extracted more than $1.3 billion from the financially troubled company
and MPT profited from charging Steward exorbitant rents that the firm could not afford
The documents also reveal the extent to which MPT
a publicly listed real-estate investment trust
opaquely funneled capital into the healthcare firm to keep it afloat
without filing the public disclosures that let regulators and its own investors know how the money was being used and the extent to which Steward needed financial assistance
The publicly listed firm repeatedly told its shareholders that Steward
which it listed in quarterly earnings reports as its largest source of revenue
MPT was working behind the scenes to increase its stake in Steward — and its control over the company’s actions — which experts say may have breached complex U.S
regulations governing real-estate investment trusts
At the heart of Steward’s decline was a 2016 “sale-leaseback” deal in which MPT bought Steward’s hospital buildings and other real estate at rates almost nine times above market prices
then charged the healthcare firm equally exorbitant rents
Although Steward earned a $1.2 billion windfall from this deal
the money was not re-invested in its hospitals but went towards dividends for investors
The 2016 sale-leaseback has been widely reported
but new evidence obtained by OCCRP shows the extent to which MPT’s investors were kept in the dark about the terms of the deals it made with Steward
and how closely entwined the landlord was with its struggling tenant
acquiring dozens more hospitals in deals that put it ever more in debt to MPT
For years a handful of analysts, short sellers, auditors and regulators demanded more information on Steward’s financial health, whether it could afford its rents and the extent to which MPT was financing the hospital chain. OCCRP previously exposed how Steward used private intelligence firms to target these critics
Former hospital staff told OCCRP the company's finances had spiraled downward to the extent that even patients’ basic needs were not being met
drinking water was rationed and medication ran out at some of Steward’s U.S
As two of Steward’s resource-strapped hospitals closed in August
OCCRP partner the Boston Globe found patients died at Steward hospitals in 15 cases
after not receiving acceptable care due to equipment or staff shortages
Two Steward hospitals have already been forced to close since it filed for bankruptcy in May
and the fates of dozens more remain uncertain
The closures have put access to medical care out of the reach of entire communities
Massachusetts senators Elizabeth Warren and Edward J
Markey described the mechanism through which MPT provided capital to Steward so it could keep paying rent as having the hallmarks of a Ponzi scheme
In a letter just before the hospital chain filed for bankruptcy urging MPT to play its part in keeping Steward’s hospitals open
the senators said: “MPT has — along with Steward — plundered these hospitals.”
At a Senate committee hearing in September probing Steward’s collapse
Senator Bernie Sanders also pointed the finger at Steward’s CEO de la Torre
accusing him of becoming “obscenely wealthy” as he helmed the hospital chain
Sanders cited de la Torre’s $15 million luxury fishing boat
a $62 million private jet held by Steward along with a “backup” private jet used by de la Torre and his family to fly around the world on non-business trips
Steward's Nashoba Valley Medical Center in Ayer
In a response to detailed questions from OCCRP about its relationship and financial dealings with Steward
an MPT spokesperson said: “We strongly reject the false and misleading premise of these assertions.”
“MPT’s primary relationship to Steward has always been that of a landlord
MPT has occasionally stepped in to provide bridge loans
and other forms of financing when no other party was willing to because we have always believed Steward’s hospitals are critical to the healthcare of their communities.”
de la Torre’s mission has been to expand access to high-quality care for underserved communities
de la Torre has consistently fought for Steward hospitals and the communities that they serve.” The spokesperson said media like OCCRP and the Boston Globe
and “certain politicians,” were “trying to fan flames with exaggerated numbers and factually inaccurate soundbites that do not tie to public or audited sources.”
Cerberus, in a statement posted online to which it referred journalists seeking comment
Cerberus has learned through the media and other reports about Steward’s recent staffing issues
and patient tragedies due to inadequate care
and multiple litigations by vendors and others pending at the time of Steward’s bankruptcy filing in May 2024 appear to be overwhelmingly related to the post-Cerberus ownership period."
appeared to be a success story — the son of Cuban immigrants who went on to graduate from Harvard and MIT
“Ralph wasn’t an academic guy but he was a good clinical surgeon,” said Frank Sellke
a former Harvard professor and doctor who hired de la Torre to be a cardiac surgeon at Beth Israel Deaconess Medical Center in Boston
And … he got it in his mind that he could create his own healthcare system.” Sellke said
He added that de la Torre impressed some in Beth Israel’s management with his vision for a plan to create low-cost medical care that was also high in quality
De la Torre’s business ambitions took him to Caritas Christi Health Care
Catholic non-profit hospital chain affiliated with the archdiocese of Boston that catered to low-income patients
who often needed government assistance to pay their bills
Caritas itself also paid out millions per year to cover indigent patients
It was often the only place they could go to receive health care
Caritas hired de la Torre to lead a financial overhaul
By that time its six hospitals required hundreds of millions of dollars in capital investment
and its staff pension system was significantly underfunded
de la Torre had developed a plan to privatize the hospital chain
Caritas quickly started talks with potential partners
and settled on New York-based Cerberus Capital Management
a massive private equity firm with broad interests including retail
which agreed to acquire the hospital chain in exchange for an investment of $895 million
Under an agreement with the Massachusetts Attorney General’s office
which had to approve the deal since Caritas was a non-profit
this money had to be invested to pay off Caritas’ debt
fund its pension program and make $400 million in capital improvements in the six hospitals
Cerberus also agreed to keep the hospitals open for three years (later extended to five)
and to not sell or transfer ownership or take dividends that would end up as debt on the company’s books for three years
A new for-profit company was created by Cerberus as a vehicle for the acquisition
Cerberus gained almost full ownership of the business
including the hospital operations and the real estate
De la Torre was named CEO of the new company
and given a nine percent stake in the company
De la Torre quickly set Steward on a very different path from the non-profit model championed by Caritas
During a Wall Street Journal panel in 2013
he told attendees the industry was changing: “At the heart of what is going on is that medicine
just like the car industry and the finance industry.”
“The man is likening lifesaving medical care to candy and cars but this is not a commodity
it is a human right,” said economist and lawyer James Henry
is the problem and what ultimately wrecked Steward.”
There was a three-year moratorium on Steward selling its hospitals
but under Cerberus and de la Torre the company immediately began to sell off other assets to raise cash
It leased out medical office space for 99 years for $100 million to the Healthcare Trust of America and then leased some of it back
It sold its laboratory testing and cytology services business to Quest Diagnostics for $35 million
It sold exclusive rights to treat hospitalized patients to an inpatient care provider for $44.5 million
But despite the asset sales and an early cash injection from the private equity firm
Steward did not significantly improve its finances
A December 2015 report by the Massachusetts Attorney General’s office reviewing the results of the deal found that Steward’s financial condition had declined since 2012
It said Cerberus had invested only $246 million of the promised $400 million in capital investments
and there is no evidence it made any outside investment into the pension program
it never invested the full $895 million promised
Despite the paucity of Cerberus’ investment
by 2020 it would take more than $1.1 billion in profits from a company that almost never made a profit
Cerberus insisted that these commitments were met
nearly $900 million was invested in hospital infrastructure
whose business model is based on quick returns for investors
is generally not a good match for the long-term stability needed by healthcare operations
an expert in private equity and co-author of the book “Private Equity at Work: When Wall Street Manages Main Street.”
“Private equity firms view healthcare organizations as ‘financial assets’ to be bought and sold – completely divorced from the human care mission of healthcare organizations,” said Batt
The Attorney General’s moratorium on selling Steward hospitals ended in 2015
the headquarters of Medical Properties Trust
for a meeting that would change the course of Steward’s trajectory
MPT was led by an ambitious and hard-charging CEO
who founded the company in the early 2000s to take advantage of a niche he had pioneered: hospital real estate
MPT bought up buildings and land belonging to hospitals
a proposition it claimed was mutually beneficial since it freed up capital for hospitals to use on bolstering their core services
the company had developed a practice of overpaying for the hospital properties
boosting the value of its stock by luring investors with the promise of high lease payments
According to an account of the meeting published in MPT’s annual report for 2016
De la Torre was ready to expand out of Massachusetts and was looking for more capital to help him do that
MPT was trying to expand its model of snapping up hospital real estate
then leasing it back to the health care companies
“It seemed a natural fit,” MPT said of the two companies
A leaked email conversation between MPT executives describes a meeting from around the same time in blunter terms
de la Torre’s focus was on “world domination,” an MPT executive recounted
The email suggests that MPT was also ready to go all in
“How much capital is too much for MPT in any given investment or year?” the executive asked
Sources told OCCRP that de la Torre and Aldag had developed a strong affinity for each other
MPT’s annual report described their relationship in glowing terms: “Each was impressed with the strengths of the company the other had built
and they felt destined to work together,” it said
and trust — the most important element — began to build.”
Aldag also praised de la Torre privately to his staff
“Ralph focuses on the big picture and doesn’t sweat the little stuff if he gets the big picture,” he wrote
I think Ralph gets it.” (When asked about the relationship between the two CEOs
de la Torre’s representative said he had no pre-existing relations with Aldag
but had “developed a relationship with him throughout negotiations as one would expect.” Aldag did not respond to a request for comment.)
MPT agreed to buy Steward’s real estate — nine acute care hospitals in Massachusetts — for $1.2 billion
paying $600 million for five of the hospitals
and another $600 million to finance the mortgages of four others
Steward would lease the hospital buildings back from MPT
"We knew that no one else could move as fast as we could move together,” Aldag was quoted as saying in the annual report
the deal looked advantageous to both sides
Steward would earn a windfall of $1.2 billion
a valuable cash injection for a hospital business operating on slim margins
MPT would expand its property portfolio and acquire an amenable new tenant to pay high rents
helping lure investors to pay a premium price for its shares just ahead of the deal
But there was also something about the deal that didn’t make sense: The prices paid by MPT were hugely inflated — nine times more than Cerberus had paid when it purchased the same group of properties in 2010 and 2011 as part of its buyout
a teaching hospital in Boston’s low-income Dorchester neighborhood
Steward had paid just $12.5 million for the same hospital less than a decade prior
And unlike when Steward made the purchases
And since the price paid for the real estate was massive
so were the rents MPT could charge Steward
according to their financial statements: In 2016 the estimated $104 million annualized rent for nine Steward hospitals was an astounding 75 percent of the original price paid for the properties themselves
although it’s not clear how much rent was actually paid
The agreement also tied Steward to an aggressive master lease obligating it to make these rent payments for up to 30 years
“Steward hospitals are now facing a death sentence,” said Henry
“They are trapped in these exorbitant leases that aren’t the price on paper and no longer own their most valuable asset: the actual hospitals.”
Experts interviewed by OCCRP explained that hospitals are limited in their ability to grow profits and large debt loads can be destructive
so the new lease commitments and debt had a significant impact on Steward’s financial health
An ambulance parked outside the shuttered Carney Hospital in Dorchester
“I don't understand how in any situation
having money going out the door to pay rent every month when you used to own the real estate is going to benefit the hospital,” said Mary Bugbee
healthcare director at the Private Equity Stakeholder Project
“Perhaps if there's a leaseback transaction where every penny was reinvested back into capital improvements of the hospital.”
Instead of reinvestment and capital improvements
Steward’s owners Cerberus along with de la Torre and his management team used the new cash to pay themselves hefty dividends
Steward’s debt load would triple in the space of one year
Just three months after the deal went through
Steward also declared net losses of $207 million and $279 million in 2017 and 2018 and would continue to lose money every year until its bankruptcy excluding one time charges
Steward’s lawyers have said as part of bankruptcy proceedings that MPT’s leases crippled Steward for years and accused MPT of “self-interested involvement and interference” in the post-bankruptcy sale of the hospitals
MPT didn’t directly respond to OCCRP on its involvement
including on the leases and their impact on Steward
Hundreds of millions also flowed out in dividend payments. Steward’s audited financial statement from the end of 2016 shows the hospital chain paid out a massive $789 million in dividends that year
de la Torre and the Steward management team
If the dividend was split according to 2016 ownership stakes
de la Torre $73 million and other Steward executives $34 million
the spokesperson for de la Torre said Steward management received $55 million in cash of a total $68 million dividend
Internal emails reveal that Steward incurred a $600 million debt in October 2016 due to what is described as “the Cerberus leveraged recap transaction.” This suggests Cerberus’ took what is known as a recap dividend
a highly controversial practice used by some private equity firms in which a company is saddled with long-term debt to pay cash dividends to investors or shareholders
OCCRP could not find any evidence MPT ever disclosed that the sale-leaseback deal included a dividend recapitalization
Cerberus denied having taken a recap dividend
saying that this payment was a $246 million return on their investment and a $473 million dividend with the rest going to de la Torre and management
When asked about the 2016 dividend by Congress earlier this year
Cerberus declined to reveal the amount it received from the deal
saying: “Cerberus does not disclose the names of investors or the specific returns earned on CCM funds by investors.”
De la Torre claimed in a response to OCCRP that Cerberus took out $1.1 billion from Steward in the last four years of its ownership
This came in the form of $719 million in debt-based dividends
including the recap; $335 million from the sale to Steward management; and miscellaneous dividends worth more than $77 million
writing on its website: “The statement made by Dr
de la Torre that Cerberus received $1.1 billion from Steward during the last four years of its ownership is false and inaccurate
There were no proceeds exchanged at the time of the 2020 management buyout of Cerberus’ equity.”
MPT used money from a carefully timed stock sale
on the promise of lucrative lease payments
the REIT raised almost $800 million in what’s known as an “overnight equity offer” by placing nearly 58 million shares at about 70 percent above the then-market price
"Selling stock is totally normal and in many respects required for a REIT,” said Rob Simone of the investment research firm Hedgeye
one of Steward’s earliest and most vocal critics
“But selling stock without fully disclosed uses of proceeds
or to overpay for assets so as to potentially boost executive compensation and create the illusion of ‘earnings growth,’ is highly problematic.”
MPT did not respond directly to questions on specific aspects of the sale-leaseback deal
the company issued an estimated $3.2 billion in dividends to itself and its shareholders
It paid for these by issuing new shares and debt
MPT wasn’t satisfied with being Steward’s landlord; it also sought to control the health care firm
Its ambitions are laid bare in slides from a presentation the company made to its board in May 2020
which reveals that the REIT had tried to gain a large stake in Steward twice
MPT would not have been permitted to directly own a large stake in Steward
so it had proposed setting up a taxable subsidiary known as a TRS that would allow it legally to hold those assets
But it was thwarted both times by Cerberus
which the slides said had “reneged” on the deal
“These situations have left Ralph with a minority stake in the company and the risk that Ralph and his team will become discouraged that they will not be able to achieve their long-term goals of controlling Steward’s growth opportunities and moving away from Cerberus’s strategic and operational control and lack of investment support,” MPT wrote
MPT chipped away at building its stake — running up against the legal boundaries of how far REITs can be invested in their tenants
REITs are not allowed to own more than 10 percent of either the value of the company or its voting rights
But documents obtained by OCCRP raise questions over whether MPT overstepped the line
is a company that raises money from investors and the stock market to buy income-producing real estate
Buying into a REIT allows investors to own real estate without having to purchase and manage properties themselves
a company must earn at least 75 percent of its gross income from real estate (which can include rents or interest on mortgages)
and pay out at least 90 percent of its taxable income as dividends to shareholders
Because the shareholders pay taxes on these dividends
REITs are usually exempt from corporate tax
REITs may not own 10 percent or more of the total voting power or value of the securities of a tenant unless they set up taxable subsidiaries to hold those assets
they must operate at arm’s length from their tenants
“REITs are intended to be pass-through investors in real property
either via rent or mortgage interest,” said Rob Simone of investment research firm Hedgeye
in exchange for not being taxed at the corporate level
code places limitations on the degree to which a REIT may own or invest in the operations of other companies and tenants.”
Senator Elizabeth Warren encouraged the Internal Revenue Service “to increase scrutiny of potential violations of tax law” by REITS that “may be illegally claiming significant tax breaks while meddling in the operations of their tenants.”
Warren said it had bought properties from Steward in 2016
“saddling the hospitals with expensive lease agreements that ultimately drove Steward into bankruptcy.” She called MPT’s investment history with Steward a “complex” one “that raises questions about whether it has met IRS requirements … on a REIT’s ownership of a tenant or an operator.”
The LLC agreement signed as part of the 2016 deal capped MPT’s equity stake at 9.9 percent
Securities and Exchange Commission (SEC) that it held 9.9-percent equity investment in Steward
just below the 10-percent threshold required for REITs to maintain their favorable tax status
Going over the threshold would have disastrous financial implications for the REIT
MPT frequently consulted with lawyers on how to structure deals to avoid this possibility
whose financial statements were not made public since it was a private firm
the same year MPT said it held 9.9 percent equity in Steward
the health care company’s then-auditors Ernst & Young concluded MPT’s interest was sufficient to make it a “related party”
That came as part of an audited financial statement which showed MPT held a 10.98 units preferred membership interest in Steward — a form of ownership that gives a priority claim on dividends but does not usually include voting rights
The 2016 operating agreement between Cerberus and Steward specified that however many preferred interests were issued to MPT
they could only ever equate to a maximum 9.9 percent equity
Ernst & Young’s conclusion raised questions over whether MPT’s share was more significant in practice than it looked on paper
"Related party means ‘not independent’ or ‘not arm’s length.’ It can also mean that one company exerts influence or control over the other
in a relationship (tenant-landlord) where each party would act only in his or own commercial interests,” said Hedgeye’s Simone
“In this case it likely means that MPT was not just a passive landlord and noncontrolling 9.9% minority owner — it probably refers to a degree of ‘control’ or ‘influence’ by MPT over Steward
In a response to questions about MPT’s REIT status as it related to its ownership of Steward
a spokesperson for de la Torre said: “Your question conflates preferred membership interests (i.e.
shares of ownership) with the percentage of ownership represented by those shares
MPT has never owned more than 9.9% of Steward.”
were a far cry from the sprawling national chain the hospital would become once it partnered with the REIT
With MPT pouring in money to acquire real estate
By the time it declared bankruptcy in May 2024
it was still operating 31 hospitals across eight U.S
The community hardest hit by the hospital chain’s demise is the place where it all started
where two hospitals have shut down since the bankruptcy was declared
MPT was already listing Steward as its largest source of revenue
accounting for 27 percent of the REIT’s earnings
even though Steward itself wasn’t profitable
But the companies had been growing rapidly — hand in hand
Steward had been buying up hospitals across the U.S
In September 2017 it acquired IASIS Healthcare in a deal valued at more than $2 billion
taking the number of hospitals it operated to 36
including the top-performing Davis and Jordan hospitals in Utah
MPT indirectly financed the deal by giving Steward $1.4 billion for 11 of the properties almost immediately after Steward acquired them
Steward would then lease them back from MPT
MPT issued mortgage loans that added to Steward’s debt load
and financed the deal by issuing higher-risk unsecured corporate notes
Documents seen by OCCRP show that MPT used mortgage arrangements as a way to pump money into Steward
Joseph’s Medical Center in Houston for $131.3 million in 2017
it “sold” the property back to Steward just six months later for $148 million by issuing Steward a mortgage note
MPT acquired the real estate back from Steward by canceling its mortgage debt and added an unspecified “cash consideration.”
MPT’s communications with the SEC show Steward’s purchase of St Joseph’s briefly pushed it into representing more than 20 percent of MPT’s assets
meaning that the REIT should have filed Steward’s audited financial statements for 2017
(As a private company Steward did not usually have to file financials
When asked by the SEC why it had not submitted Steward’s financial statements even though it had crossed the 20 percent asset threshold
MPT said it was because St Joseph’s had quickly been sold back to MPT
Steward’s annual lease payments to MPT were $350 million
representing 42 percent of MPT’s total revenues
despite accounting for less than 9 percent of the hospitals in its portfolio
(MPT did not respond to questions on this apparent imbalance.)
Meanwhile, Steward’s international arm had secured a massive deal to take over Malta’s state hospitals for $2.1 billion. The deal would eventually be rescinded and led to an investigation into whether the Prime Minister had been bribed, as OCCRP has reported.
But financial filings and internal communications seen by OCCRP show that despite its ambitious plans and global expansion
which had been managed by Steward since 2018
MPT’s Aldag insisted in a February 2019 earnings call that Steward was “doing exceptionally well” — even though Steward’s annual report for 2018 had just shown a $280 million loss
Aldag again repeated on an earnings call the following year that Steward “continues to see good progress
both operationally and financially.” As a private company
Steward did not have to publish its annual reports
so MPT investors would have had no way of knowing its true financial prospects
(Aldag did not respond to a request for comment.)
Cerberus executives had privately conceded that Steward was in financial peril
and the private equity firm negotiated exiting the business
It turned out that Steward looked from the outside like a successful business in part because MPT was finding discreet ways to bankroll the hospital chain
Internal emails obtained by OCCRP detail just how dependent Steward had become on MPT for its survival
but may not have disclosed the extent of its lending in a timely manner — or in some cases
publicly traded companies like MPT are expected to announce significant or “material” events to shareholders within four days
some of the loans MPT made to Steward were not disclosed for more than three years
and in some cases OCCRP could find no evidence that MPT had ever made the required filings
Emails suggest that these loans were being used to cover the exorbitant rents that made the hospital chain look so lucrative to Steward’s investors
Steward’s lawyers quoted its creditors as saying that MPT’s leases were “disguised financing,” and that it had resorted to sending the hospital chain money to cover them
In response to a question about this allegedly disguised financing
the spokesperson for de la Torre said: “As we have cited numerous times in our communications with HELP Committee
de la Torre is prohibited from discussing the bankruptcy process based on confidentiality obligations.”
internal documents show that MPT lent Steward more than $53.5 million in working capital in three tranches
MPT gave details of seven outstanding loan tranches totalling $214.9 million — but that number falls far short of the loans evidenced in the documents and communications seen by OCCRP
the REIT analyst from investment researcher Hedgeye
said MPT appeared to be funding Steward’s operations
acting more as an owner or major investor in the company than a landlord
(MPT blamed Simone and Hedgeye for much of the short interest in the company and records obtained by OCCRP show MPT and Steward asked business intelligence firms to disseminate negative information about them.)
“MPT behaves like Steward is 100% theirs,” Simone said
MPT said it had made all the required disclosures regarding Steward
“MPT stands firmly behind our rigorous underwriting process as well as the completeness and accuracy of our disclosures
We have unfailingly disclosed each of our transactions – including those with Steward – as and when required under applicable securities law
De la Torre’s representative said the former CEO still believed Steward’s partnership with MPT was a “prudent decision” because the trust “represented a long-term capital partner whose returns on investment were conditioned upon Steward’s continued success.”
is by its own definition a long-term investor
by definition has a different incentivization structure governing its Steward investment
rendering it more focused on short-term return for its investors,” she said
De la Torre was not involved in MPT or Cerberus’ financial reporting
de la Torre and other executives continued to prosper
Besides the debt based dividends that de la Torre and his team earned
variously reported as $55 to $71 million in 2016
leaked documents show that they benefited from huge loans including through share and off-balance schemes
Internal emails show that in 2018 multiple Steward executives had outstanding loans with the U.S
arm of Steward totalling more than $3 million
Some executives’ loans featured on Steward’s balance sheet but others did not
including an unspecified amount loaned to de la Torre
President Mark Rich was due to be forgiven
The loans were secured by Steward shares owned by the executives
Leaked emails show that in 2021 Steward executives were also being loaned money by the healthcare company’s international arm
Steward Health Care International (SHCI) which offered de la Torre a credit line of up to $27 million
with the repayment transferred to companies he owned
Steward Healthcare International was a subsidiary of Steward Healthcare System
any loan between these two entities at this time reflects an arrangement between a parent company and a subsidiary
We are not aware of promissory notes from Steward Health Care System for $27 million or $3 million.”
Internal correspondence shows the cavalier way in which the executives discussed the large sums they were spiriting away
Rich asked SHCI in late 2022 to deposit 500,000 euros into an account controlled by de la Torre
I doubt you will be getting it back anytime soon.”
the president of the international arm of Steward
The company’s lawyer explained the repayment of the loan to Ernst: “short of saying that the loan will not be claimed is the only wording[,] which without saying is our position.” Ernst did not respond to a request for comment
8.8 million euros went toward a Madrid residence that de la Torre used as his European base
De la Torre also lived lavishly in a baronial Dallas residence
and had exclusive use of a corporate jet and a penchant for buying yachts
A Steward bankruptcy document shows de la Torre took $4.2 million in salary from Steward Health Care Systems
in the year preceding its bankruptcy declaration
A spokesperson for de la Torre said his salary was consistent with other executives of his stature
“A nationally recognized compensation consultant analyzed and made recommendations for Dr
and remains on the lower end of the recommended salary range for an executive like Dr
de la Torre.” The spokesperson declined to name the consultant that made the recommendations
“Mark Rich resigned as CFO of Steward Health Care in 2017
and did not hold that position again until March 2023
he was not in a position to oversee the vast majority of the instances you have posed
Mark Rich has never received a loan from SHCI.”
After years of trying to take control of Steward
MPT made a final push to oust Cerberus in 2020
A presentation to MPT’s board in May that year said that Cerberus's continued ownership would “impede MPT's opportunity to grow with Steward."
The slide deck from the presentation reveals more about the bitter battle that had been taking place between the private equity firm and the REIT
we have been in discussions with Steward and Cerberus to try to achieve our collective goal of MPT owning a significant stake in Steward while taking out Cerberus' ownership,” the slides say
Cerberus attempted to re-trade management by threatening to manipulate Steward into bankruptcy with the belief that they can force MPT to renegotiate lease terms."
earnings before taxes and rent was around $375 million but likely less
The memo argued that Steward’s management had “deluded itself” on the hospital chain’s expected operating earnings
Galbato added that de la Torre had little ability to manage a business and that a “real conversation” was needed with MPT on “the art of the possible.”
Cerberus called it “a thought exercise by an operating executive who had been asked for his ‘10,000 foot’ view during the earliest months of the COVID-19 pandemic – a time of great uncertainty for healthcare businesses around the world
The very first sentence of the memo states that ‘comments should be regarded as hypothesis needing some clarification and validation.’” Cerberus added that “the cover email transmitting the April 2020 document to which you refer clearly stated that it was specifically offered as a ‘discussion document,’ the content of which needed to be ‘discussed and analyzed.’”
Cerberus and Steward figured out a deal in which everyone would get something
To work out the details of the 2020 carve up
MPT’s management said in internal communications that they needed to “get creative.” The result of that creativity was dubbed “Project Easter.”
albeit for the slightly lesser amount of $335 million
MPT’s equity participation rights in Steward (the rights to dividends and earnings from the sale of assets) quietly increased to 37 percent with the deal
The MPT board presentation illustrates the REIT’s still ambitious plan for the hospital chain: The slide deck says MPT values the franchise at $2.5 billion and adds that de la Torre and Steward management had been exploring various “international opportunities.”
But the whole Project Easter carve-up came with a major caveat — hundreds of millions had to be be pumped into Steward
Documents reviewed by OCCRP reveal that MPT
and Steward were concerned that they could be accused of cashing out of Steward at a time when the hospital chain was insolvent
The May 2020 presentation to MPT’s board said that $400 million would be injected into Steward for two reasons: to keep the hospital chain afloat during Covid and to “provide protection to Cerberus from a possible fraudulent conveyance claim.” Such a claim would allow creditors or a bankruptcy court to claw back money that it received for its equity interest when Steward was insolvent
MPT and de la Torre would form a new company to buy Steward’s international rights and assets for $200 million
The other half would be raised by acquiring Steward’s Davis and Jordan hospitals in Utah for $200 million more in cash than they were worth
Those deals were detailed in the final agreement signed by all parties
But there was an extra twist — not all of that money turned up on Steward’s balance sheets
An email from Steward’s Mark Rich in February 2023 reveals that the $200 million cash due to be raised from the sale of the Utah hospitals was not going to be found by auditors because it had been paid out to partners
“So we have to back track all this bad history and bad explaining and “secret decoder ring topside only entries” and come up with a simple
Everyone thinks the audit of Davis/Jordan will explain this
It’s all buried probably in partner’s equity,” he says
MPT vice president and CFO Steve Hamner mentioned the REIT would expect to consent to a dividend payout of $111 million off the back of the Project Easter deal
the majority of which would go to de la Torre
who owned 80.7 percent of Steward by that point
Around that same time, de la Torre was reported by the Boston Globe to have bought the Amaral
a 190 foot superyacht that cost $40 million
Project Easter also included permission for Steward to change its operating agreement so that MPT lost the right to approve the issuance of dividends by Steward
That meant de la Torre would be free to issue himself dividends of up to $500 million at any time
In a response to a question sent to de la Torre about the Cerberus exit deal
the spokesperson said: "The only benefit Dr
de la Torre received from the May 2020 recapitalization was to ensure that the hospitals were not put into a bankruptcy process in the middle of the pandemic and that they had sufficient funds to continue operations during COVID."
Cerberus told OCCRP of the deal: “Cerberus exited Steward in early May 2020 … when we exited
the company was financially healthy and we did everything we could to prudently prepare it for the uncertain impact of COVID-19 by specifically structuring the May 2020 transaction to require the infusion of $400 million of fresh capital into the company
the hospital chain’s chief financial officer said in an internal chat
apparently working through how much Steward could borrow
that the firm was “deep in the zone of insolvency,” before hours later concluding Steward could “Live to fight another day.”
MPT told investors and regulators that Steward was improving and on a path to being “strongly cash flow positive.” It again described Steward as its largest tenant by revenue — underscoring that its apparently lucrative properties were receiving supposedly consistent rentals
analysts and the SEC began to question MPT’s business with Steward and the opacity surrounding their relationship
The SEC flagged that its special requests to MPT for it to submit Steward’s audits had not been met
The SEC noted it was “unable to locate disclosure clarifying the nature of the assets that are associated with [Steward].”
In an October 2023 earnings call MPT continued to claim the hospital company was performing well
but in the following months MPT injected tens of millions into Steward via bridging loans
MPT and Steward finally agreed to file for bankruptcy and put 30 of its 31 remaining hospitals up for sale
In a press release announcing the bankruptcy
de la Torre said Steward had “done everything in its power to operate successfully in a highly challenging health care environment.”
Steward said it had over $9 billion in total liabilities
and nearly $1 billion in unpaid bills from medical vendors and suppliers
the fight to control the hospital chain continues
Steward has filed an “adversary complaint” — a lawsuit filed within a bankruptcy case — accusing MPT of speaking directly to potential bidders for the hospitals without Steward’s consent
in a bid to get them to sign onto MPT’s leases
The complaint claims MPT has pressured Steward to “accede to its demands that all value be siphoned to MPT
leaving the estates bare and risking the Debtors’ ability to maintain and sell their operations in a manner that maximizes value and safeguards patient health and safety.”
Brian Fitzpatrick (OCCRP) and the Boston Globe Spotlight team contributed reporting
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you’ll be directly supporting investigative journalism as a public good
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a Pakistani businessman who helped U.S.-based Steward Health Care secure a massive public contract in Malta,..
healthcare operator Steward paid over $7 million to U.K.-based intelligence firms that conducted surveillance and..
Maltese police raided on Wednesday the home of former Prime Minister
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- Le 7 février/February 2025) - Nova Net Lease REIT (the “REIT”) has announced a final distribution to unitholders and termination of the REIT
The distribution representing all of the REIT's assets (the “Liquidating Distribution”) will be made on February 20
2025 to holders of REIT units as of February 13
The Liquidating Distribution is estimated to be US$0.43 per REIT unit
For further information please see the REIT news release of February 6
Trading of the units will be halted at market close on February 12
2025 and the units will be delisted at the market close on February 13
_________________________________
Nova Net Lease REIT (le « REIT ») a annoncé une distribution finale aux porteurs de parts et la dissolution du REIT
La distribution représentant tous les actifs du REIT (la « distribution de liquidation ») sera versée le 20 février 2025 aux porteurs de parts du REIT au 13 février 2025
La distribution de liquidation est estimée à 0,43 $ US par part du REIT
Pour plus d'informations, veuillez consulter le communiqué de presse du REIT du 6 février 2025
La négociation des parts sera interrompue à la clôture du marché le 12 février 2025 et les parts seront radiées de la cote à la clôture du marché le 13 février 2025
If you have any questions or require further information please contact Listings at (416) 367-7340 or E-mail: [email protected]
Si vous avez des questions ou si vous avez besoin d'informations supplémentaires, veuillez contacter le service des inscriptions au 416 367-7340 ou par courriel à l’adresse: [email protected]
SOURCE: Canadian Securities Exchange (CSE)
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Company Profile
Banking/Financial Services
James Allen Van De Riet “Jimmy”
after a hard fought battle with brain cancer. A Memorial service will be held on March 26th at 3pm at the Bridge Church with a reception to follow
1981 to Jim and Carla Van De Riet in Great Falls
He graduated from Great Falls High School in 2000
he went to work at Modern Cabinet until he found his passion in operating heavy machinery and made that his career. Jimmy met Crystal in 2014 at a church function
He was soon followed by Quinnleigh Rose in May of 2019
Jimmy left a huge impact on everyone in his life
He did this through his strong and devoted spirit
His lifelong dream was to be a husband and a father
Nothing gave him greater joy or more pride than his wife and kids
He was a dependable son who loved adventuring with his dad and enjoying his mom’s culinary skills
He was the quintessential big brother who fiercely looked after his little sisters
He was a truly loyal friend and always sensitive to the needs of those closest to him
consistently willing to stand up for his convictions
and took pride in having a strong work ethic
Lisa (Nick) and their sons Braxton and Jevin; his sister
Jeanna; his grandparents Rollin and Margaret; and his grandpa Nelson
In leu of flowers Jimmy asked for donations to be made to his children’s trust fund
Plus tips on how to get started with these alternative investments
She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies
A real estate investment trust (REIT) is a company that owns
or finances income-generating real estate and sells shares to raise capital to do so
An example of a REIT is Healthpeak Properties Inc. (DOC)
it had a market capitalization of almost $15 billion
REITs own more than $4.0 trillion in commercial real estate
About 63% of these assets are owned by publicly traded trusts
The Financial Industry Regulatory Authority has repeatedly warned investors about fraud in the sector
showing how many REIT scams involve “REITs” that are anything but: They don’t own real estate
You’ll want to closely examine the expense ratios for REIT mutual funds or ETFs
Mutual fund and ETF fees are far closer than a generation ago—they are often very similar when holding the same assets—and both types of funds have dropped their fees by more than half over the past 20 years
where in the past you might have looked to invest in REITs on your own to keep more of your returns
The returns of REITs have a relatively low correlation with other assets
That means they don’t necessarily follow what’s happening with stocks
That’s why they can help diversify a portfolio: They might stay steady as other assets head downward
Many REITs also often use leverage (they borrow) to buy up more properties. When comparing REITs, looking at their debt-to-equity ratios is essential so you’re not putting money into a venture sinking under its debt
Potential for high management and transaction fees
Whether investing in these trusts is a good idea depends on your financial goals, risk tolerance
and overall stock market investing strategy
REITs offer the potential for steady income through dividends
and exposure to real estate without all the complexities and headaches of directly owning property
They have historically provided competitive long-term returns and can serve as a hedge against inflation
such as sensitivity to interest rate changes
The SEC recommends that investors be wary of anyone who tries to sell REITs that aren’t registered with U.S. regulators. It advises, “You can verify the registration of both publicly traded and non-traded REITs through the SEC’s EDGAR system
You can also use EDGAR to review a REIT’s annual and quarterly reports as well as any offering prospectus.” If you stick to regulated REITs
you’ll have the normal risk of such trusts but not the outright fraud that would take off with your whole investment
REITs must pay out 90% or more of their taxable profits to shareholders as dividends
REIT companies are often free from most corporate income tax
offering deferred taxation and compounding your gains
A “paper clip REIT” increases the tax advantages of a REIT while allowing it to manage properties that such trusts normally can’t
It involves two entities “clipped” together via an agreement where one entity owns and the other manages the properties
Paper clip REITs entail stricter regulatory oversight since there can be conflicts of interest
Monthly-paying REITs are often attractive to income-focused investors seeking regular cash flow since many provide a steady income via dividends
the frequency of payments doesn’t necessarily indicate higher returns or better financial health for the REIT
GovInfo. “Cigar Excise Tax Extension of 1960.”
U.S. Securities and Exchange Commission. “Investor Bulletin: Real Estate Investment Trusts (REITs),” Page 1
Money Inc. “The History of REITs.”
Brad Thomas, via Wiley. “The Intelligent REIT Investor Guide,” Pages 191–193
Internal Revenue Service. “Instructions for Form 1120-REIT (2023).”
Healthpeak Properties. “Our Strategy—Clarity That Delivers.”
Healthpeak Properties Investor Relations. “Annual Reports.”
National Association of Real Estate Investment Trusts. “The Investor’s Guide to REITs,” Pages 5–6
Investor.gov, U.S. Securities and Exchange Commission. “Investor Bulletin: Publicly Traded REITs.”
Financial Industry Regulatory Authority. “Real Estate Investment Trusts: Alternatives to Ownership.”
Nareit. “REITs by the Numbers.”
Ron Forlee, via Wiley. “Real Estate Development Strategy for Investors,” Pages 175–215
Brad Thomas, via Wiley. “The Intelligent REIT Investor Guide,” Pages 123–139
Brad Thomas, via Wiley. “The Intelligent REIT Investor Guide,” Pages 15–27
Brad Thomas, via Wiley. “The Intelligent REIT Investor Guide,” Pages 187–195
Investment Company Institute, via Internet Archive Wayback Machine. “2023 Investment Company Fact Book.”
Internal Revenue Service. “About Form 8995, Qualified Business Income Deduction.”
Investor.gov, U.S. Securities and Exchange Commission. “Real Estate Investment Trusts (REITs).”
U.S. Securities and Exchange Commission. “Investor Bulletin: Real Estate Investment Trusts (REITs),” Pages 1–4
In a move previously floated in January, Brookfield Property Partners is set to go private or "de-REIT," with an agreement in hand to be fully acquired by Brookfield Asset Management for $6.5 billion
Brookfield investors can opt to receive cash
shares of Brookfield Asset Management or shares in Brookfield Property
Brookfield Property Partners' independent directors have unanimously approved the deal
If shareholders and the Ontario Superior Court of Justice also approve
and if other customary closing conditions are met
the deal is expected to close in the third quarter
Once that closes, Simon Property Group would be the lone mall REIT that, at the moment, would benefit from tax changes being considered in Congress
This move by Brookfield comes as no surprise
not least because the company made its intentions clear earlier this year
the mall landlord may have been hemmed in by the web of financial requirements unique to publicly traded real estate investment trusts or REITs
Those rules are designed to ensure that mom and pop investors can partake of commercial real estate investments
though the stiff limitations are sweetened with massive tax exemptions
according to recent research from S&P Global Market Intelligence
Several experts believe that most malls need a more diverse mix of tenants and
Egelanian says his research shows that even A malls have 25% to 35% too much space
The agreement announced last week "allows for greater optionality in how we manage our portfolio of high-quality real estate assets," Nick Goodman
The tax benefits also make this a tricky decision. Simon Property Group CEO David Simon in the past has said that while that company regularly contemplates de-REITing, the tax implications are too great. Both Simon and Brookfield have publicly endorsed tax changes that would allow them more flexibility to own their own tenants
while maintaining the REIT's lucrative tax benefits
Those changes theoretically apply to any REIT
although at the moment would apply only to Simon and Brookfield
mall REITs with significant stakes in their own retail tenants
"I am wondering how Brookfield is getting around the cost of de-REITing
REIT that has heavily invested in retailers," Egelanian said by email
"David Simon will twist and turn every lever available to him to give his company an advantage
with many of their secondary malls collapsing and other trophy assets still needing billions of new investment
creative re-anchoring and re-merchandising to deal with fundamental changes in the department store
Brookfield Property Partners didn't immediately return requests for comment on whether they continue to favor the proposed tax changes
despite the fact that their deal to be acquired and de-REIT would essentially render them moot
didn't immediately return a request for comment about whether consideration of the bill might change now that it will likely soon apply only to one mall REIT
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While real estate investment trusts (“REITs”) have been utilized over the past 20 years as a vehicle to acquire and own real estate
recent tax law changes have expanded the attractiveness of REITs to additional investors and investments
REITs are subject to a variety of organizational
Let’s take a look at ownership requirements as they relate specifically to the investors owning a REIT
A REIT must have at least 100 shareholders (the “100 shareholder test”) for at least 335 days of a 12-month taxable year or during a proportionate part of a taxable year that is less than 12 months
This requirement does not apply until the REIT’s second taxable year
The REIT must satisfy the 100 shareholder requirement starting no later than January 30 of its second taxable year. A problem can arise when a REIT forms late in the year
A REIT whose first taxable year is December 1 to December 31 only has approximately 60 days from the day it is formed to obtain its 100 shareholders
while a REIT whose first taxable year is February 1 to December 31 has approximately 365 days after formation to obtain its 100 shareholders.
No rules of attribution are applicable in determining whether the 100 shareholder test is satisfied
assume that a partnership with 125 partners owns 100% of the REIT’s stock
the REIT would be treated as having one shareholder
and it would fail the 100 shareholder test.
The 100 shareholder test is generally not a problem for actively traded public REITs or for non-traded REITs (REITs that are listed but are thinly traded)
which are often used in real estate private equity structures
would have a hard time meeting this test if not for the existence of REIT shareholder accommodation services that help secure shareholders for the REIT
The shareholders secured by shareholder accommodation service firms are typically preferred shareholders with no voting rights who receive an annual dividend coupon in exchange for their investment
This is allowed because there are no restrictions stating that a REIT can’t have more than one class of stock
and all shareholders are accounted for in the 100 shareholder test
A REIT that has 100 preferred shareholders who receive an annual dividend and a partnership owning 100% of the common stock of the REIT will pass the 100 shareholder test.
A REIT must issue transferable shares or transferable certificates of beneficial interest as support for its ownership
This requirement must be satisfied at inception
There are certain scenarios in which restrictions on transferability will not violate this rule
In the context of private equity real estate funds
this requirement is easily met when the REIT is primarily owned by the real estate fund
which is typically taxed as a partnership for federal income tax purposes.
A REIT will be closely held if five or fewer individuals directly
or indirectly via certain attribution rules
own more than 50% of the value of the REIT’s outstanding stock at any time during the last half of the REIT’s taxable year
This test is commonly known as the “five or fewer test.” The attribution rules for the five or fewer test require that a REIT look through partnerships
trusts and estates to the ultimate owner of the REIT stock
Each individual is deemed to own all shares owned by their spouse
ancestors and lineal descendants. The rules of attribution are complex and must be navigated cautiously
In order to ensure compliance with the aforementioned rules
REITs must issue an annual shareholder demand letter to a certain number of REIT shareholders of record
The number of demand letters that are required to be sent is based on how many shareholders the REIT has
These letters are required to be sent to shareholders within 30 days after the close of the REIT taxable year
The demand letter confirms the following from the shareholders:
While noncompliance of this requirement was formerly an event that could de-REIT a company
the penalty for non-compliance is currently $50,000
REITs have long been valued due to their ability to obtain a deduction for dividends paid to shareholders to avoid the double taxation present with C corporations
The REIT structure has historically been favored by tax-exempt and foreign investors due to tax efficiencies for these types of investors
individuals were less inclined to be interested due to the loss of pass-through taxation available with partnerships
REITs have become attractive investment vehicles and offer tax saving opportunities for individual investors as well
The demand for REITs in the marketplace is continually growing
with various investors even expecting and requiring them in certain structures
due to the complex nature of the requirements
REITs must ensure continuous compliance to maintain REIT status and maximize the tax benefits that their investors may be eligible to receive.
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ShareSaveMoneyInvesting In REITs: Everything You Need To KnowByMarcia Wendorf
REIT is an acronym for real estate investment trust
REITs own portfolios of real estate-related assets
hotels and factories that generate income through rent and capital appreciation
REITs provide value to shareholders through share price appreciation and dividend yield
but what makes REITs unique is that by law
they must pay out at least 90% of their annual taxable income to investors in the form of dividends
There are several ways that you can buy shares of REITs:
Nareit provides a searchable directory of REITs organized by:
To show you how to choose the right REIT to invest in
I’m going to analyze several non-mREIT publicly traded REITs
what you should look for are growth in rental income
growth in service income or an increase in economies of scale
In this article I look at two methods of analysis: top-down and a bottom-up
Top-down analysis considers macroeconomic factors while bottom-up analysis looks at specific company fundamentals
many workers continue to work from home and hybrid work has become more common
fears of a recession are causing many companies to pause in their search for new office space
the vacancy rate for industrial space is up 6% over last year
making the industrial sector one of the few bright spots within commercial real estate
The residential sector hit a record high in 2021
over the last year the residential vacancy rate has risen from 5% to 6.8%
Our top-down analysis has shown that there is less potential growth in the Nareit sectors of office
so we’re going to look at REITs in the specialty
my main criterion is a REIT's one-year return
but instead use funds from operations (FFO)
FFO is calculated: FFO = Net Income + Depreciation + Amortization + Losses on Sales of Asset - Gains on Sales of Assets - Interest Income
a dividend yield of 4.3% and a dividend amount of $0.62
and 80.1% of shares in IRM are held by institutions
hospitality and entertainment destinations that are leased to industry-leading gaming and hospitality operators
Properties include iconic resorts in Las Vegas such as Caesars Palace
VICI's portfolio contains 44 gaming facilities
58,700 hotel rooms and more than 450 restaurants
its dividend yield is 4.8% and its dividend amount is $0.39
The current share price is $32.34 and 98.5% of VICI's shares are held by institutions
Analysts' consensus is between a Buy and a Strong Buy
The company provides digital infrastructure and digital services
This REIT has a market cap of $72.1 billion
a dividend yield of 1.8% and a dividend amount of $3.41
and 96.6% of shares are held by institutions
Analysts' consensus is a hair above Buy with seven putting EQIX at a Strong Buy
residential and mixed-use real estate in the form of master-planned communities throughout the U.S
These include the Seaport in New York City
Bridgeland and the Woodlands Hills in the Houston
and 97.0% of shares are held by institutions
including Pershing Square Capital Management
the Vanguard Group and Baillie Gifford and Company
The company leases distribution facilities to around 5,200 customers within two major categories: business-to-business and retail/online fulfillment
and 95.37% of shares are held by institutions including The Vanguard Group
The company owns and operates healthcare properties throughout the U.S
more than 10 million square feet of life science and medical office properties and approximately 28,000 senior living units
and 76.04% of shares are held by institutions
Blackrock and Charles Schwab Investment Management
If you don't want to go all in on an individual REIT
you can invest in a REIT mutual fund or a REIT ETF
REITs are required by law to distribute at least 90% of their taxable income to shareholders
which means that investors may have to pay taxes on their dividends
investing in REITs can provide diversification benefits due to their low correlation with other asset classes
It's important to do your due diligence before investing
Consider factors such as the management team's track record
the REIT's financials and performance history
It's also important to evaluate the REIT's investment strategy and risk management practices
(Photo Illustration by Ashley Borg/Globe Staff
This story was reported and written by Rebecca Ostriker and Catherine Carlock. It was edited by Gordon Russell
— It felt like the beginning of a beautiful friendship
a brash and brilliant son of Cuban immigrants
jetted into the Birmingham airport in 2015
he was a man with a vision for the struggling Steward Health Care chain
a new approach that could vault it from its roots as a network of Catholic hospitals in Massachusetts to a for-profit giant of national and even global importance
That’s where a business executive raised in small-town Alabama came in
had been inspired to achieve financial success since childhood
a German immigrant who worked as a locksmith at the New York Stock Exchange
this is where dreams come true,” his grandfather said
aiming to fill a market niche no other real estate investment trust in the world had thought to claim — hospitals
His brainchild: Make hospitals “asset-light” by buying up their buildings and land and then leasing them back
This would allow health care firms to “unlock the value of their real estate,” according to MPT
by taking cash from the sale and spending it on facility improvements
With hospital operators left to focus on health care
MPT could sit back and collect rent — yielding hefty profits for years
Aldag and his inner circle would get extraordinarily rich along the way
It was a persuasive pitch, and MPT, which by 2005 was traded on the stock exchange where Aldag’s grandfather had worked, grew quickly. By the time Aldag and de la Torre met in 2015, MPT had about $4 billion in assets
it is the largest hospital landlord in the United States
and the second biggest private owner of hospitals in the world
MPT owns 435 properties worth more than $16 billion
including 42,000 hospital beds in nine countries — making it a huge force in medicine
“Every time we’ve been able to sit down with a CFO of a hospital and walk through this model
we’ve been able to win the financing of it,” Aldag said in a 2011 speech
Aldag and de la Torre were both around 50 and at a similarly critical juncture in their lives — ready
De la Torre’s goal for Steward was nothing short of “world domination,” according to an internal MPT email reviewed by the Globe
Aldag was looking to turbocharge the already rapid growth of his firm
The two “hit it off immediately,” according to an MPT annual report
Aldag and de la Torre “felt destined to work together.”
the high-flying CEOs and their firms would take an extraordinary entrepreneurial journey
MPT financed Steward’s expansion across the country
Steward soon became the country’s largest private for-profit health system
and by far MPT’s biggest single investment and source of revenue
Steward began to founder under the weight of the new rent payments and eventually started cutting corners on the basic expenses of medicine — nurses
MPT couldn’t afford to let its biggest tenant fail
sometimes secretive ways to funnel money to Steward and bolster its balance sheet
Finally came the steep financial fall of recent months, with hospitals closing, communities desperate for health care, and both companies facing public condemnation. De la Torre recently resigned as Steward’s chairman and CEO; Aldag remains on top at MPT
The Boston Globe Spotlight Team has spent months investigating this unusual partnership to lay bare another critical piece of the Steward saga
Among the team’s findings: MPT and Steward
which were supposed to operate at arm’s length
MPT — which in addition to being Steward’s landlord was a creditor and minority owner — quietly routed money to Steward
helping its biggest tenant make rent payments
MPT hid Steward’s ailing financial health from investors
but may have also violated federal securities laws
according to experts and analysts who spoke to the Globe
some observers have likened the entire arrangement to a Ponzi scheme
Steward and MPT were able to keep the house of cards they built standing for nearly a decade
Aldag and de la Torre steered tens of millions of dollars into their own pockets
even as Steward sank into bankruptcy and MPT’s stock price collapsed
including seven with former MPT and Steward executives and employees
as well as in-depth property data analyses and a trove of tens of thousands of confidential financial documents and internal emails obtained by the Globe Spotlight Team and the Organized Crime and Corruption Reporting Project
Steward and de la Torre, whom the Senate voted unanimously last month to hold in criminal contempt of Congress, have come in for most of the public opprobrium as Steward’s hospitals withered or closed
But the Spotlight Team’s investigation shows that this unprecedented crisis and alleged profiteering would not have been possible without the extraordinary financial backing of MPT and Aldag
This “appears to me to be serious white-collar crime,” said Steve Weisman
an attorney and expert on financial scams who teaches at Bentley University and has followed the Steward saga
Weisman likened MPT’s activities with Steward “to the type of accounting fraud perpetrated by executives at Enron.”
“They make the hospitals look profitable when they’re not,” said Weisman
MPT spokesperson Drew Babin called the Globe’s findings “false and misleading” and said MPT had no direct influence over Steward’s day-to-day operations
with its role primarily limited to that of landlord
and other forms of financing when no other party was willing to because we have always believed Steward’s hospitals are critical to the healthcare of their communities,” Babin said
We have unfailingly disclosed each of our transactions — including those with Steward — as and when required under applicable securities law.”
Aldag declined to speak with a reporter who sought him at his office and home in Alabama
De la Torre said through a spokesperson that the Globe’s findings contained “factual inaccuracies,” and that he believed eight years ago — and still believes — that partnering with MPT was the most viable option for Steward
It “was a prudent decision to choose the asset-light REIT model in 2016 over private equity alternatives because the former represented a long-term capital partner whose returns on investment were conditioned upon Steward’s continued success,” said his spokesperson
After exploring “a multitude of options,” Kral said
to generate necessary capital for the Steward hospital network at the time was through the 2016 sale-leaseback.”
just over a year after de la Torre and Aldag first met in Alabama
MPT made a spectacular deal for Steward’s real estate
For Steward’s nine Massachusetts hospital campuses
nine times what Steward had paid less than a decade earlier
MPT paid Steward $263 million for Carney Hospital in Dorchester — 21 times what Steward had paid in 2010
there was a method to the madness: The sellers got rich
A huge chunk of the money for MPT’s 2016 purchase of the Massachusetts hospitals
was converted into a payout for Steward’s then-owner — the private-equity firm Cerberus Capital Management
Cerberus got the lion’s share of the $790 million, allowing it to recoup its initial investment in Steward plus a profit of $473 million, according to Cerberus
De la Torre reaped his own considerable payday for his share of the firm
Steward purchased several Massachusetts hospitals
then sold them to MPT for astronomical sums
Source: Staff research; Massachusetts property records
Notes: Steward acquired the hospitals in 2010 and 2011 and by 2018 had sold them all to MPT
the massive deal and its jaw-dropping price markups also had upsides
The company’s growth had long been fueled by vast sums of money from Wall Street and lenders
The Steward acquisition allowed the firm to announce it had booked another long-term tenant — one that would be paying hundreds of millions of dollars in rent over the decade-plus ahead
MPT financed Steward’s expansion into states including Florida
a Spotlight Team analysis of more than two dozen Steward hospitals shows that MPT paid over three times the total value that had been assigned to the hospitals by local tax assessors
The dynamic was perhaps captured most neatly in a pair of transactions in West Texas
Steward bought a hospital in Big Spring for $11.7 million
MPT bought the building and the land it sits on from Steward for more than twice as much: $26 million
Such overpayments almost certainly did damage to MPT’s long-term health
But they paid off handsomely in the short run for Aldag and other top executives
whose compensation was linked for years to the size of the deals they closed
according to filings with the Securities and Exchange Commission
Aldag’s compensation reached a high-water mark of $17.85 million
Aldag and two other MPT cofounders — chief financial officer R
Steven Hamner and retired chief operating officer Emmett E
McClean — were collectively granted compensation of more than $300 million
said the company’s executive compensation plan is closely aligned “with shareholder interests,” adding: “Over the last two years
executive pay has been significantly impacted by stock price performance.” He cited an SEC filing that said with more than 80 percent of CEO compensation tied to stock price
the amount “actually paid” to Aldag in that span was far less
it was obvious to some MPT employees that the fundamentals of the company’s deals often made no sense
Four former MPT employees told the Globe that many company acquisitions were based not on due diligence or careful underwriting
but on executives’ desire for high-dollar deals and more properties
growth at all costs,” explained Alex Hubartt
“Whatever direction came from the leadership
who spoke on the condition of anonymity for fear of repercussions
“Everybody wins with the highest price,” the employee said
“That was the goal: How do we maximize the rent stream?”
The employee added that company analysts were sometimes pressured to sign off on deals even when the values were “insane.”
“The bottom line of all this is greed,” said a former MPT executive
How some real estate deals between Steward and MPT worked
Slide 1Slide 2Slide 3Slide 4Slide 5Steward bought Massachusetts hospitals at market rates
Steward then sold the hospitals and land to MPT at inflated prices
MPT leased them back to Steward at exorbitant rates
MPT and Steward executives steered tens of millions of dollars into their own pockets
It didn’t take long for cracks to appear in the shiny facade Steward and MPT had constructed
Steward posted heavy losses in 2017 and 2018
Steward’s hospitals tended to serve working-class people
The company billed itself as focused on underserved and rural communities and “leading the way for a remarkable new world of access to affordable
high-quality care for every human being.” It was not a formula for generating the kinds of returns Steward would need to pay millions in rent
a huge expense after Steward sold its real estate
Whether or not the financial strategists at Steward and MPT knew
the risks of what they were doing is impossible to determine
But it’s clear both parties understood early on that Steward was in trouble
Their solution was to hide it behind MPT’s cash infusions and bullish claims
MPT investors had no way to know how badly things were going
The fortunes of MPT and Steward were now inextricably bound together
MPT first took a 5 percent stake in Steward when it made the 2016 Massachusetts real estate deal
With the multistate Steward expansion that followed
MPT’s stake grew to 9.9 percent — just below the maximum allowed under federal laws aimed at ensuring real estate trusts aren’t too reliant on a particular tenant
MPT had become heavily dependent on its biggest renter
Steward hospitals by early 2019 made up 38 percent of MPT’s assets and a whopping 44 percent of its revenue
things had long appeared to be going swimmingly
The company’s assets more than doubled between 2016 and 2019
and its stock price rose by almost 70 percent
But its success was at great risk if the troubled state of Steward’s finances became public
the companies were about to launch their boldest gambit
with an expected loss of about $400 million
But MPT’s leaders couldn’t let Steward crumble
Through a complex web of transactions that hid the scheme’s intent
MPT would “infuse $400 million of ‘new’ capital into Steward” to “assure Steward has adequate liquidity,” according to a confidential MPT board presentation
masking Steward’s financial problems and by extension MPT’s
The “recapitalization” plan, as MPT privately called it, would also free Steward from its corporate parent, Cerberus, and its restrictions. MPT loaned $335 million to de la Torre and fellow Steward executives to help them buy out Cerberus. In 2021, Cerberus walked away with a total profit of $800 million
MPT also signed off on a payout of $111 million to Steward’s shareholders
with de la Torre — now the majority owner — getting about three-quarters of it
according to internal Steward documents reviewed by the Globe
Critics in Congress and elsewhere have questioned the ethics of such individual enrichment in the face of so much financial wreckage
But the rest of the scheme was just as troubling
Project Easter was a circular transaction — a landlord giving a tenant money that helped it pay rent
That may be one reason MPT took pains to disguise what it was up to
Rather than making a straightforward transaction
the firm routed the money into joint ventures
It provided half of its $400 million capital infusion in exchange for an international Steward subsidiary that had “negative cash flow,” according to a confidential Steward board presentation reviewed by the Globe
MPT conjured the other $200 million by converting the mortgages on two Utah hospitals to leases, and paying Steward an “additional cash consideration” based on what MPT later described as the hospitals’ “relative fair value.” MPT said they were worth a stratospheric $950 million
then hired appraisers “with clear and appropriate instructions” to reach “a high level estimate,” according to internal emails
about a mile away from the 54-acre site where the company's $150 million future home is under construction
The entire plan enabled MPT to shroud Steward’s insolvency
In public statements and in federal securities filings
MPT never called it “Project Easter,” and the effort was portrayed as a series of disparate transactions
not a carefully coordinated effort to keep its largest tenant afloat
Documents reviewed by the Globe and interviews with former MPT employees make clear the real estate firm had long known it was papering over problems
there were “lots of inside remarks about Steward always needing money
always coming to MPT for money,” said Cassi Marshall
but if I know your financial situation and I loan you money
“Everybody at MPT knew Steward’s financial situation,” she added
One major way that MPT kept Steward afloat was to quietly fund its faltering tenant
amid mounting questions from analysts and investors about the company’s circular financial dealings
MPT released a video in which Aldag cast a benign light on the aid his firm sent to tenants such as Steward
“There are times when high-quality hospital operators experience short-term financial challenges caused by unexpected events,” Aldag explained
MPT will sometimes step in to provide temporary
limited support through working-capital loans
These loans … are certainly preferable to permanently cutting rent.”
But MPT’s support could hardly be called “temporary” or “limited.”
MPT pumped more than $1.5 billion into Steward through a series of loans
according to a Globe analysis of Steward bankruptcy documents
That works out to more than six years of rent and interest payments from Steward
and it’s about three-quarters of the total rent and interest collected from Steward over the life of the two firms’ relationship
when Steward’s chief financial officer said he had “reached his limit with vendors” and demanded MPT wire Steward $75 million by “tomorrow,” according to an MPT email reviewed by the Globe
Acquisitions could also be a way to channel funds to Steward
The 2019 hospital purchase in West Texas was one example
Aldag emailed de la Torre about a potential project in Turkey
he said he was considering another infusion of money
“I am trying different scenarios to get the maximum amount of cash to you guys,” Aldag wrote
“I am trying to come up with a structure that we can pay you (Steward) for the real estate over and above what we pay Turkey.”
MPT may have violated federal securities laws
by quietly propping Steward up and misrepresenting its financial health to investors
Internal emails reviewed by the Globe make clear MPT wanted to keep its investors in the dark
as they prepared for a call with investors and analysts after their launch of Project Easter in 2020
Aldag and other company leaders circulated talking points
including a list of “THINGS WE WILL NOT COMMUNICATE.” Among them: “Steward valuation math” and the word “recapitalization.”
Aldag was breezy and optimistic in an earnings call later that year
telling listeners: “Our operators are performing beautifully across the world.”
Aldag again brushed off questions about Steward’s faltering finances
“Steward has always performed well at the hospital level,” he told an interviewer
Steward’s bankruptcy filing was less than two years away
As late as February 2024 — just over two months before Steward went bust — Aldag was assuring nervous investors in an earnings call that Steward would be able to start paying full rent starting in June
“We’ve been getting weekly cash flow reports from Steward’s advisers,” he said
“to which they’ve exceeded every one of them thus far.”
Rob Simone of the investment research firm Hedgeye Risk Management
one of MPT’s earliest and most outspoken critics
been issuing emphatic warnings for two years
and had advised investors to short the stock
“It’s the biggest fraud that hardly anyone knows about,” Simone said in an interview
and now the numbers themselves — is basically a giant bluff
“While they are telling people — investors
analysts — that things are always getting better … it just keeps getting worse
and the misrepresentations get more preposterous
And eventually the lies fall in on themselves.”
as some tenants’ struggles started to come into view
and short sellers and other analysts began raising increasingly urgent questions about the stability of the whole enterprise
By the time Steward declared bankruptcy in May 2024
shares of MPT had fallen by more than 80 percent
but MPT’s long-term future appears uncertain
The firm’s credit has been downgraded to “junk bond” status
Steward’s bankruptcy filing showed it was on the hook for $6.6 billion in future rent payments to MPT
with assets estimated at about $16 billion
The once-cozy relations between MPT and its biggest tenant have soured
Steward complained in filings that onerous leases had “crippled” its hospital operations
and it attacked MPT’s “self-interested involvement and interference” in hospital sales
MPT suggested Steward had only itself to blame
“Rent is virtually never the primary cause of financial stress for hospitals,” it said in a public statement
Left unsaid: Many hospitals don’t pay rent in the first place
MPT is trying to persuade Wall Street that it can surmount the crushing losses set in motion by Steward’s slide into bankruptcy
One show of confidence: Construction is well underway on a sleek new $150 million headquarters in Vestavia Hills
the firm trumpeted the news that it had agreed to long-term leases with new tenants for a passel of former Steward hospitals
But the same press release acknowledged that MPT’s new tenants won’t pay a dime of rent for the rest of 2024
they’ll pay just half of their eventual projected rent
The announcement was greeted with some skepticism by analysts
shareholders have filed nearly a dozen lawsuits alleging securities fraud and other malfeasance
is the lead plaintiff in one class-action lawsuit
He stated that he lost about $182,000 on MPT stock because of the company’s subterfuge
As MPT became the largest hospital landlord in the United States
But it tumbled amid questions about its business practices
Source: New York Stock Exchange data; staff research
A MPT deal for nine Steward hospitals in Mass
Steward eventually operated around three dozen hospitals around the country
D WSJ article questions MPT’s fundamentals
It was one of a number of articles that cast a critical eye on MPT
an engineer with a couple thousand dollars worth of MPT shares
and then everything started tanking,” Crognale said
His suit accuses MPT executives and board members of breaching their fiduciary duty and says some unjustly enriched themselves using “nonpublic information to sell their personal holdings” while MPT stock was “artificially inflated.”
“there is certainly a real chance of liability” for securities fraud
a Columbia University law professor and authority on securities law and white-collar crime
that MPT “can escape liability if it can convince a jury that Steward Health Care’s decline was not fully (or adequately) understood by it
“Do not assume that this is a slam-dunk case,” Coffee added
“Truth and what can be proven in court are two spheres that overlap only marginally
MPT, meanwhile, has filed its own defamation lawsuit against Viceroy Research, a short-selling financial research group that has criticized MPT for possible fraud. The MPT lawsuit is “illogical and farcical,” said Fraser Perring
a British financial analyst and founder of Viceroy
“It’s 100 percent malicious.” A judge denied Viceroy’s motions to dismiss the case
both Steward and MPT face heavy scrutiny from Congress and federal agencies
Steward’s implosion has triggered congressional hearings
and a Senate committee chaired by Vermont Senator Bernie Sanders is exploring the causes of Steward’s bankruptcy
a federal grand jury in Boston is asking questions and seeking records about Steward’s relationship with MPT
according to people familiar with the inquiry
And the SEC has repeatedly sought information from MPT
including Steward’s audited financial statements
MPT has said it was willing to supply the files
In response to a Globe request for documents pertaining to possible investigations of MPT
the SEC said it was withholding records from the newspaper under an exemption that “protects from disclosure records compiled for law enforcement purposes
the release of which could reasonably be expected to interfere with enforcement activities.” It added that the reference to law enforcement did not necessarily indicate any violations of law
Massachusetts Senators Elizabeth Warren and Edward Markey wrote that MPT’s “investments have all the appearances of a Ponzi scheme that is continuing to harm Steward-owned hospitals.”
They have introduced legislation that would impose new restrictions on real estate investment trusts in the medical sector
plundered Steward’s Massachusetts hospitals and drove them into bankruptcy,” Warren said in a statement provided to the Globe last month
“After Ralph de la Torre and Cerberus sold the land from under the hospitals to make a fat profit
MPT saddled the hospitals with onerous leases and ran what looked like a Ponzi scheme
this looting caused the hospital system to fail and patients to suffer.”
Their outrage continues unabated despite de la Torre’s recent exit from Steward
full accountability has not yet been assessed
Some of the most passionate testimony at a recent Senate committee hearing came from Louisiana state Representative Michael Echols
whose Monroe-area district is near Glenwood Regional Medical Center — perhaps Steward’s most troubled hospital
At least six patients unnecessarily died at Glenwood because of Steward’s failure to uphold basic standards of medicine, according to earlier reporting by the Spotlight team
a Republican who has worked in the health care industry
told the committee that MPT and Steward had “facilitated a Ponzi-like scheme” and urged the federal government to take steps to prevent a repeat
They’ve killed my constituents,” Echols said in an interview with the Globe
“They are health care terrorists of the highest order
and I want to make sure that they never get to come back to my state.”
Join the discussionCreditsReporters: Rebecca Ostriker and Catherine CarlockContributors: Khadija Sharife of the Organized Crime and Corruption Reporting ProjectEditors: Gordon Russell
Brendan McCarthyPhotos: Kayla Bartkowski For The Boston Globe
Catherine CarlockDirector of photography: Bill GreenePhoto editor: Kevin MartinDesign: Ashley Borg and John HancockDevelopment and graphics: John HancockDigital editor: Christina PrignanoCopy editor: Mary CreaneAudience: Cecilia Mazanec© 2025 Boston Globe Media Partners
The company has undergone significant change by selling its legacy real estate holdings and transforming into a pure-play digital infrastructure REIT
(NYSE: DBRG) has undergone significant change since Marc Ganzi became president and CEO in July 2020 and began implementing the task of transforming the company into a pure-play digital infrastructure REIT
the company sold its legacy real estate holdings in hotels
and warehouses to exclusively focus on digital assets including cell towers
"New management has been in the chair now for six quarters," Ganzi
a member of the Nareit 2022 Advisory Board of Governors
selling $40 billion of traditional real estate and building $33 billion in digital holdings
That's a pretty significant asset rotation."
DigitalBridge's current market value is around $5 billion
the company's share price has also more than tripled
the company reported total consolidated revenues of $252 million
more than double the same period a year earlier
DigitalBridge has also grown to $40 billion of digital assets under management
making it one of the world's largest dedicated digital infrastructure firms
Ganzi is aggressively competing to help build the nation's ultra-fast 5G wireless network
which will need vast amounts of new fiber and transmission infrastructure
The company's shift in focus is opportune given that President Joe Biden signed a $1 trillion infrastructure spending bill into law in November
The bill designates $65 billion to expand the nation's broadband access—a priority during the pandemic when millions of Americans were forced to work and study from home
managing director at Raymond James & Associates
says DigitalBridge's future could benefit from the infrastructure bill
"A lot of money is being raised that will help create digital infrastructure and build fiber deeper into the U.S
Prentiss believes investors will support DigitalBridge's transformation to a pure-play digital infrastructure REIT
and other digital infrastructure are very long-lived assets with big-revenue contracts
and that they're absolutely essential for the world to be connected."
and governance (ESG) criteria that investors are looking for today
DigitalBridge "checks a lot of the social boxes of trying to make sure we bridge the digital divide," Prentiss adds
Ganzi is no stranger when it comes to digital infrastructure
one of the largest privately owned tower companies in the U.S
The company was acquired by American Tower Corp
Ganzi went on to launch Digital Bridge Holdings LLC
which later merged with Colony Capital in July 2019 in a $325 million deal
He took over as CEO of the combined company in July 2020 to accelerate the digital transformation strategy
replacing long-time Colony CEO Thomas Barrack
Ganzi rebranded Colony to DigitalBridge in June 2021 to better reflect the new direction
and Amazon Web Services had all seen an explosion of growth
"These digital businesses just took off like a rocket ship
but what everybody forgets is that to make those things work you need the intrinsic plumbing behind it," Ganzi explains
As capacity and demand increased during the pandemic
demand for DigitalBridge's data center leasing jumped more than 35%
Demand for space on its cell towers increased 12%
and demand for its fiber network rose nearly 20%
"We had to build more cell towers and more data centers and dig more fiber out," Ganzi says
"All of these verticals were growing because it was this support system that enabled the world to stay functioning
It has been one of the fastest-growing moments in time for data centers
DigitalBridge sees a continuation of the vast opportunities in digital infrastructure driven by 5G technology
When Digital Bridge Holdings merged with Colony in 2019
Colony was a dividend-focused diversified REIT that lacked a strategic direction
"It was very focused on delivering a high-performance dividend to shareholders but really didn't have a tremendous amount of growth," Ganzi says
many of which were suffering from disintermediation
"I knew that when we merged our businesses
And I took over right in the middle of the pandemic."
One of the biggest challenges was over-leverage
Ganzi inherited a balance sheet that was levered at about 14 times earnings before interest
and amortization (EBITDA.) The company had a "pretty significant cost structure," he points out
with about $300 million of G&A costs on a global basis and 27 offices
the company's digital business was growing about 30% per year
the pandemic was devastating to our hotels
But the digital infrastructure business was absolutely crushing it," Ganzi notes
Ganzi forged ahead to transition DigitalBridge to a pure-play digital infrastructure REIT
the company had completed the sale of its industrial portfolio to Blackstone for $5.7 billion as part of its repositioning
Ganzi then mapped a two-year glide path to sell a total of $40 billion of real estate assets
"Selling those assets in an up-market would have been great but selling hotels in the middle of a pandemic where occupancy plummeted to 25%
the company reached an agreement to sell a portfolio of other non-digital assets to Fortress Investment Group LLC for $3.2 billion and announced the $535 million sale of its wellness property portfolio to Highgate and Aurora Health Network
The deal is pending and includes $316 million of net value to DigitalBridge
"That's really the last piece of the puzzle," Ganzi says
"We literally just went asset by asset and engaged appropriate resources and bankers and were able to divest what was formerly known as Colony Capital
gives credit to Ganzi for selling traditional real estate during the pandemic
"They've done a great job managing this transition
DigitalBridge took measures to restore liquidity
"We knew we had to start paying off debt," Ganzi says
"I made a very difficult decision to suspend the dividend in the second quarter of 2020." (The dividend has yet to be restored
but Ganzi says he's committed to reinstating it in 2022)."I decided to harvest as much cash as I could," he notes
"I had to reconstitute our revolver [credit line] and start paying down debt." Ganzi has since taken net leverage down by reducing corporate debt from $7 billion to $1.4 billion
the company's cost structure needed to match the new mission
and we cut the cost structure from $300 million a year to $130 million," Ganzi says
"We pulled about $170 million of annualized costs out of the business
which was a massive value uplift for shareholders."
DigitalBridge's investment management business has acquired more than a dozen companies including DataBank
fiber network operator Zayo Group Holdings
European data center company AtlasEdge Data Centres
the largest private owner/operator of communications infrastructure and locations in the U.S
"The ability to go out and buy and build next-generation real estate was a big prove it moment," Ganzi says
DigitalBridge is busy raising massive amounts of capital
nearly doubling its first fund and 35% higher than the original $6 billion target
"DCP II blew away people's expectations," Day notes
DigitalBridge is "still misunderstood and under the radar," Day says
given that it doesn't quite match the structure of other traditional digital infrastructure REITs
and invests in digital infrastructure and real estate on its own behalf
but also operates an asset management business providing another source of revenue
It manages $17 billion of third-party capital in its investment management business
"That's a differentiator from its peers," Day says
which love this space because it has a strong growth profile and provides current income."
DigitalBridge is also differentiated by the "hyper-convergence" trend
DigitalBridge was assembled with that vision in mind
"They're going to have all these different swim lanes and buy these different companies," he says
and there's a lot of synergies between them." DigitalBridge offers investors the ability to gain exposure across the entire digital infrastructure ecosystem
Day expects more investors to consider DigitalBridge as it becomes clear that the transformation is complete
As a result of the extensive turnaround efforts
Ganzi says DigitalBridge has now reestablished trust with investors
"The only way you rebuild trust is you look people in the eye
"We beat every key milestone and metric that we put in front of our shareholders."
Day describes 2021 as a "transformational year" for the company
"You can't say enough about the job that Ganzi and his team have done," he says
as the new CEO "has met every one of the targets he set."
Ganzi is also changing the company's culture with new company governance and a new senior leadership team
The company previously had no ESG policy and has now implemented forward-leaning ESG policies that tackle climate change
that the company's transformation is complete
"We want the investor community to know that we've arrived
but we're happy to be on the other side," he says
And now that the foundational work is done
the next stage is acceleration," Ganzi says
Ganzi describes the REIT as "incredibly well-positioned," with a "clean balance sheet" and almost $2 billion in cash
"We're widely known as one of the most sophisticated investors in the digital infrastructure space
We think we can buy a lot of great digital real estate and continue to build out our digital operating model and the assets we own on the balance sheet," he adds
The D/E ratio will differ for every company depending on how they are capitally structured and which type of real estate they invest in
REITs use lots of debt to finance their holdings
It depends on how it is financially structured and funded and what type of real estate the trust invests in
The amount of leverage REITs use ranges from less than zero to as much as they can carry
Simon Property Group had over $29 billion in liabilities at the end of its 2023 second quarter
Annaly Capital Management had more than $77 billion in liabilities for the same period
Leverage ratios vary for REITs based on the types of real estate they invest in and how they are structured
A good ratio is one created by a balanced structure of income
Whether a ratio is good or not will be determined by the success of each company
Simon Property Group. "Form 10-Q | Period Ended June 30, 2023," Page 5
Blackstone Real Estate Investment Trust. "Form 10-Q | Quarter Ended June 30, 2023," Page 1
Kite Realty Group. "Balance Sheet."
Annaly. "Form 10-Q | Period Ended June 30, 2023," Page 1
ARMOUR Residential REIT (NYSE: ARR) has provided guidance for its upcoming April 2025 cash dividend
announcing a planned distribution of $0.24 per Common share
must distribute substantially all of its ordinary REIT taxable income to maintain this tax classification
The final dividend determination remains at the discretion of ARMOUR's board of directors
who will evaluate multiple factors including operational results
Shareholders should note that dividends exceeding current tax earnings and profits for the year will generally not be taxable to common stockholders
ARMOUR Residential REIT (NYSE: ARR) ha fornito indicazioni per il suo prossimo dividendo in contante di aprile 2025
annunciando una distribuzione pianificata di $0,24 per azione comune
che mantiene il suo status di REIT ai fini dell'imposta sul reddito federale degli Stati Uniti
deve distribuire sostanzialmente tutto il suo reddito imponibile ordinario di REIT per mantenere questa classificazione fiscale
La determinazione finale del dividendo rimane a discrezione del consiglio di amministrazione di ARMOUR
che valuterà diversi fattori tra cui i risultati operativi
le condizioni di mercato e altre considerazioni rilevanti
Gli azionisti devono notare che i dividendi che superano i guadagni e i profitti fiscali attuali per l'anno generalmente non saranno tassabili per gli azionisti comuni
ARMOUR Residential REIT (NYSE: ARR) ha proporcionado orientación para su próximo dividendo en efectivo de abril de 2025
anunciando una distribución planificada de $0.24 por acción común
que mantiene su estatus de REIT a efectos del impuesto federal sobre la renta de EE
debe distribuir prácticamente todos sus ingresos imponibles ordinarios de REIT para mantener esta clasificación fiscal
La determinación final del dividendo queda a discreción de la junta directiva de ARMOUR
las condiciones del mercado y otras consideraciones relevantes
Los accionistas deben tener en cuenta que los dividendos que superen las ganancias y beneficios fiscales actuales del año generalmente no serán gravables para los accionistas comunes
ARMOUR Residential REIT (NYSE: ARR)는 2025년 4월에 예정된 현금 배당금에 대한 안내를 제공하며
이 세금 분류를 유지하기 위해 거의 모든 일반 REIT 과세 소득을 분배해야 합니다
주주들은 현재 세금 수익과 이익을 초과하는 배당금은 일반적으로 보통주 주주에게 과세되지 않는다는 점에 유의해야 합니다
ARMOUR Residential REIT (NYSE: ARR) a fourni des indications pour son prochain dividende en espèces d'avril 2025
annonçant une distribution prévue de 0,24 $ par action ordinaire
qui maintient son statut de REIT pour les besoins de l'impôt fédéral américain
doit distribuer pratiquement tous ses revenus imposables ordinaires de REIT pour conserver cette classification fiscale
La détermination finale du dividende reste à la discrétion du conseil d'administration d'ARMOUR
les conditions du marché et d'autres considérations pertinentes
Les actionnaires doivent noter que les dividendes dépassant les bénéfices et profits fiscaux actuels de l'année ne seront généralement pas imposables pour les actionnaires ordinaires
ARMOUR Residential REIT (NYSE: ARR) hat eine Prognose für die bevorstehende Barausschüttung im April 2025 gegeben und eine geplante Ausschüttung von 0,24 $ pro Stammaktie angekündigt
das seinen REIT-Status für die US-Bundessteuerzwecke aufrechterhält
muss nahezu alle seine ordentlichen REIT steuerpflichtigen Einkünfte ausschütten
um diese Steuerklassifikation aufrechtzuerhalten
Die endgültige Festlegung der Dividende liegt im Ermessen des Vorstands von ARMOUR
Marktbedingungen und andere relevante Überlegungen
die die aktuellen steuerlichen Gewinne und Erträge des Jahres übersteigen
im Allgemeinen für Stammaktionäre nicht steuerpflichtig sind
2025 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT
(NYSE: ARR and ARR-PRC) (“ARMOUR” or the “Company”) today announced guidance on the April 2025 cash dividend for the Company's Common Stock of $0.24 per Common share
April 2025 Common Stock Dividend Information
20252%; min-width:2%;;text-align: center ; vertical-align: middle; vertical-align: bottom ; "> 23%; min-width:23%;;border-top: solid black 1pt ; text-align: center ; vertical-align: middle; vertical-align: top ; ">April 29
2025 Certain Tax MattersARMOUR has elected to be taxed as a real estate investment trust (“REIT”) for U.S
ARMOUR is required to timely distribute substantially all of its ordinary REIT taxable income
Dividends paid in excess of current tax earnings and profits for the year will generally not be taxable to common stockholders
Actual dividends are determined at the discretion of the Company’s board of directors
which may consider additional factors including the Company’s results of operations
financial condition and capital requirements as well as current market conditions
expected opportunities and other relevant factors
ARMOUR invests primarily in fixed rate residential
adjustable rate and hybrid adjustable rate residential mortgage-backed securities issued or guaranteed by U.S
Government-sponsored enterprises or guaranteed by the Government National Mortgage Association
ARMOUR is externally managed and advised by ARMOUR Capital Management LP
an investment advisor registered with the Securities and Exchange Commission (“SEC”)
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995
Actual results may differ from expectations
you should not rely on these forward-looking statements as predictions of future events
Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results
The Company disclaims any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events
conditions or circumstances on which any such statement is based
Additional Information and Where to Find It
or by directing requests to: ARMOUR Residential REIT
Gordon HarperChief Financial OfficerARMOUR Residential REIT
Already have an account? Login
passed peacefully at the FirstHealth Hospital in Pinehurst on Monday
he was the son of the late Garrett and Bernadine Dieleman Van de Riet
The two would move to western Michigan where Tom started selling mobile homes at 18 years old
Tom was an entrepreneur and highly motivated
Tom opened a furniture store that mainly serviced the manufactured home retirement communities
A few years later Tom would sell the furniture store and move to North Carolina in 1984
Later that year Tom would open and run Homes by Vanderbuilt in Sanford and become a pioneer in the modular housing industry
never seeking the spotlight or personal recognition
He attended the Bible Tabernacle church in Whispering Pines for several years and more recently
Tom is also survived by his 2 grandchildren: Ginnie and Cole Van de Riet
He was the brother of Bob Van de Riet and the late William “Bill” Van de Riet
Online condolences may be made at www.bolesfuneralhome.com
Services are entrusted to Boles Funeral Home of Pinehurst
American Healthcare REIT (NYSE: AHR) announced plans to ring The Opening Bell® at the New York Stock Exchange on February 10
The celebration comes after a remarkable year of growth
with the company's stock price increasing by 145% to $29.40 per share since its debut
CEO Danny Prosky highlighted this milestone as a testament to the team's dedication and portfolio strength
The company has achieved a market capitalization of $4.5 billion
positioning itself as the 8th largest healthcare REIT in the nation according to the National Association of Real Estate Investment Trusts as of January 31
AHR remains focused on providing high-quality healthcare facilities
and maintaining strong operational performance to create stockholder value
American Healthcare REIT (NYSE: AHR) ha annunciato i piani per suonare la campanella di apertura alla Borsa di New York il 10 febbraio 2025
segnando il suo primo anniversario di quotazione
La celebrazione arriva dopo un anno eccezionale di crescita
con il prezzo delle azioni dell'azienda aumentato del 145% a $29,40 per azione dal suo debutto
Il CEO Danny Prosky ha sottolineato questo traguardo come un attestato della dedizione del team e della forza del portafoglio
L'azienda ha raggiunto una capitalizzazione di mercato di $4,5 miliardi
posizionandosi come il 8° REIT sanitario più grande della nazione secondo la National Association of Real Estate Investment Trusts al 31 gennaio 2025
AHR continua a concentrarsi sulla fornitura di strutture sanitarie di alta qualità
perseguendo opportunità di crescita e mantenendo forti performance operative per creare valore per gli azionisti
American Healthcare REIT (NYSE: AHR) anunció planes para tocar la campana de apertura en la Bolsa de Nueva York el 10 de febrero de 2025
conmemorando su primer aniversario de cotización
La celebración llega después de un año notable de crecimiento
con el precio de las acciones de la compañía aumentando un 145% a $29.40 por acción desde su debut
El CEO Danny Prosky destacó este hito como un testimonio de la dedicación del equipo y la fortaleza de la cartera
La compañía ha alcanzado una capitalización de mercado de $4.5 mil millones
posicionándose como el octavo REIT de salud más grande del país según la Asociación Nacional de Fideicomisos de Inversión en Bienes Raíces al 31 de enero de 2025
AHR sigue enfocado en proporcionar instalaciones de salud de alta calidad
buscando oportunidades de crecimiento y manteniendo un fuerte rendimiento operativo para crear valor para los accionistas
아메리칸 헬스케어 REIT (NYSE: AHR)는 2025년 2월 10일 뉴욕 증권 거래소에서 개장 종을 울릴 계획을 발표하며
이 축하 행사는 데뷔 이후 주가가 145% 상승하여 주당 $29.40에 도달한 remarkable한 성장의 해를 마무리한 것입니다
CEO 대니 프로스키는 이 이정표를 팀의 헌신과 포트폴리오의 강점을 입증하는 증거로 강조했습니다
회사는 2025년 1월 31일 기준으로 전국에서 8번째로 큰 헬스케어 REIT으로 자리 잡으면서 $45억의 시장 가치를 달성했습니다
주주 가치를 창출하기 위해 강력한 운영 성과를 유지하는 데 노력하고 있습니다
American Healthcare REIT (NYSE: AHR) a annoncé des plans pour sonner la cloche d'ouverture à la Bourse de New York le 10 février 2025
marquant le premier anniversaire de sa cotation
La célébration intervient après une année remarquable de croissance
le prix de l'action de l'entreprise ayant augmenté de 145% pour atteindre 29,40 $ par action depuis ses débuts
Le PDG Danny Prosky a souligné cette étape comme un témoignage du dévouement de l'équipe et de la solidité du portefeuille
L'entreprise a atteint une capitalisation boursière de 4,5 milliards de dollars
se positionnant comme le 8e plus grand REIT de santé de la nation selon la National Association of Real Estate Investment Trusts au 31 janvier 2025
AHR reste concentré sur la fourniture d'établissements de santé de haute qualité
la recherche d'opportunités de croissance et le maintien d'une solide performance opérationnelle pour créer de la valeur pour les actionnaires
American Healthcare REIT (NYSE: AHR) hat Pläne angekündigt
Februar 2025 die Eröffnungsglocke an der New Yorker Börse zu läuten
um sein einjähriges Listungsjubiläum zu feiern
Die Feier erfolgt nach einem bemerkenswerten Jahr des Wachstums
in dem der Aktienkurs des Unternehmens um 145% auf $29,40 pro Aktie seit dem Debüt gestiegen ist
CEO Danny Prosky hob diesen Meilenstein als Beweis für das Engagement des Teams und die Stärke des Portfolios hervor
Das Unternehmen hat eine Marktkapitalisierung von $4,5 Milliarden erreicht und sich somit als der 8
größte Healthcare REIT im Land positioniert
laut National Association of Real Estate Investment Trusts zum 31
AHR bleibt fokussiert auf die Bereitstellung hochwertiger Gesundheitseinrichtungen
die Verfolgung von Wachstumschancen und die Aufrechterhaltung einer starken operativen Leistung zur Schaffung von Wert für die Aktionäre
2025 /PRNewswire/ -- American Healthcare REIT
(the "Company") (NYSE: AHR) announced today that members of its board of directors and management team will ring The Opening Bell® at the New York Stock Exchange on Feb
in celebration of the one-year anniversary of the Company's listing on the exchange
"Ringing the Opening Bell is an exciting moment that commemorates a year of significant progress
and a steadfast commitment to excellence for all of our stakeholders," said Danny Prosky
the Company's President and Chief Executive Officer
"This milestone is a testament to our team's dedication and the strength of our portfolio
This celebration is just the beginning for AHR as we remain focused on providing high-quality care for the communities we serve
seizing new growth opportunities and driving strong operational performance to deliver lasting value for our stockholders."
the Company's stock price has grown 145% to $29.40 per share (as of the close of trading on Feb
AHR is the nation's 8th largest healthcare REIT based on market capitalization as of Jan
per the National Association of Real Estate Investment Trusts
(NYSE: AHR) is a real estate investment trust that acquires
owns and operates a diversified portfolio of clinical healthcare real estate
focusing primarily on senior housing communities
and outpatient medical buildings across the United States
Investor Contact: Alan PetersonVP, Investor Relations & Finance(949) 270-9200investorrelations@ahcreit.com
Media Contact:Damon ElderSpotlight Marketing Communications(949) 427-1377damon@spotlightmarcom.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/american-healthcare-reit-to-celebrate-first-year-listing-anniversary-by-ringing-the-opening-bell-at-the-new-york-stock-exchange-302371088.html
Due to recent events, you can now leave online condolences with each obituary posted on the Kutis Funeral Home website. COVID-19 Funeral Assistance – FEMA is now helping those that have lost a loved one from COVID-19. Click HERE to review the information on eligibility and requirements on the COVID-19 Funeral
Beloved wife of the late Ike Bess; devoted mother to Tom (Heather) Bess
Michele (Terry) O’Shea; loving grandmother to Tom (Caitlin)
dearest sister to Rich (Glenna)Grab; dearest sister-in-law and special friend to Nancy Grab
Services: Funeral at KUTIS SOUTH COUNTY CHAPEL 5255 Lemay Ferry Rd
Memorial contributions to de Greeffe Hospice House appreciated
a few that come to mind are baking christmas cookies with Norma
We are never prepared to lose our parents
You’re mom reached out to me several times after loosing Norma
I find comfort knowing that she is in a better place
we were saddened to hear the news of our dear friend
she always had a smile and was ready to have fun
(particularly Bingo) Rip you will be missed
Prayers and our deepest sympathy for your family
Ron ,Tom,Joe and Michele you are in my prayers at this difficult time was sad to see this your mom was a sweet lady love and hugs to you all
I met Mary Ann recently at the apartment complex where we lived
She was always friendly & I know she will be missed
Praying for comfort & peace for her family
May God bless Mary Ann and her family members
May God’s loving presence comfort you and his promise of eternal life sustain you during these very difficult times
My thoughts and prayers are with you and your family
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City Office REIT (NYSE: CIO) has scheduled its first quarter 2025 financial results announcement for Friday
The company will host a conference call at 11:00 am Eastern Time on the same day to discuss the results
A supplemental financial package will be available on the company's website
Investors can participate via webcast through the Investor Relations section at www.cioreit.com or join the telephone conference using specific domestic and international dial-in numbers
The conference call replay will be accessible through July 31
City Office REIT (NYSE: CIO) ha programmato l'annuncio dei risultati finanziari del primo trimestre 2025 per venerdì 2 maggio 2025
L'azienda ospiterà una conferenza telefonica alle 11:00 ora orientale dello stesso giorno per discutere i risultati
Un pacchetto finanziario supplementare sarà disponibile sul sito web dell'azienda
Gli investitori possono partecipare tramite webcast nella sezione Relazioni con gli Investitori su www.cioreit.com o unirsi alla conferenza telefonica utilizzando numeri di accesso specifici nazionali e internazionali
La registrazione della conferenza sarà accessibile fino al 31 luglio 2025
City Office REIT (NYSE: CIO) ha programado el anuncio de sus resultados financieros del primer trimestre de 2025 para viernes 2 de mayo de 2025
La compañía llevará a cabo una llamada de conferencia a las 11:00 am hora del Este el mismo día para discutir los resultados
Un paquete financiero suplementario estará disponible en el sitio web de la compañía
Los inversores pueden participar a través de un webcast en la sección de Relaciones con Inversores en www.cioreit.com o unirse a la conferencia telefónica utilizando números de acceso específicos nacionales e internacionales
La repetición de la llamada de conferencia estará accesible hasta el 31 de julio de 2025
City Office REIT (NYSE: CIO)는 2025년 5월 2일 금요일에 시장 개장 전에 2025년 1분기 재무 결과 발표를 예정하고 있습니다
회사는 같은 날 동부 표준시 오전 11:00에 결과를 논의하기 위한 전화 회의를 개최할 것입니다
투자자들은 www.cioreit.com의 투자자 관계 섹션을 통해 웹캐스트에 참여하거나 특정 국내 및 국제 전화 접속 번호를 사용하여 전화 회의에 참여할 수 있습니다
City Office REIT (NYSE: CIO) a programmé l'annonce de ses résultats financiers pour le premier trimestre 2025 pour vendredi 2 mai 2025
La société organisera une conférence téléphonique à 11h00 heure de l'Est le même jour pour discuter des résultats
Un package financier supplémentaire sera disponible sur le site web de la société
Les investisseurs peuvent participer via un webinaire dans la section Relations Investisseurs sur www.cioreit.com ou rejoindre la conférence téléphonique en utilisant des numéros de connexion nationaux et internationaux spécifiques
La rediffusion de la conférence téléphonique sera accessible jusqu'au 31 juillet 2025
City Office REIT (NYSE: CIO) hat die Bekanntgabe seiner finanziellen Ergebnisse für das erste Quartal 2025 auf Freitag
Das Unternehmen wird am selben Tag um 11:00 Uhr Eastern Time eine Telefonkonferenz abhalten
Ein zusätzliches Finanzpaket wird auf der Website des Unternehmens verfügbar sein
Investoren können über das Webcast in der Abteilung für Investor Relations unter www.cioreit.com teilnehmen oder sich mit spezifischen nationalen und internationalen Einwahlnummern zur Telefonkonferenz anmelden
Die Wiederholung der Telefonkonferenz wird bis zum 31
(NYSE: CIO) ("City Office" or the "Company") announced today it will release its financial results for the quarter ended March 31
City Office's management will hold a conference call at 11:00 am Eastern Time on May 2, 2025 to discuss the Company's financial results. Additionally, a supplemental financial package to accompany the discussion of the results will be posted on www.cioreit.com
Click on the webcast link under the "Investor Relations" section of the Company's website at www.cioreit.com
Domestic: 1-833-470-1428International: 1-404-975-4839Passcode: 926092
Please dial in at least 10 minutes before the scheduled start time
Domestic: 1-866-813-9403International: 1-929-458-6194Passcode: 647190
A replay of the call will be available later in the day on May 2
A replay will also be available at "Webcasts & Events" in the "Investor Relations" section of the Company's website
City Office REIT is an internally-managed real estate company focused on acquiring
owning and operating office properties located predominantly in Sun Belt markets
City Office currently owns or has a controlling interest in 5.4 million square feet of office properties
The Company has elected to be taxed as a real estate investment trust for U.S
City Office REIT, Inc.Anthony Maretic, CFO+1-604-806-3366investorrelations@cityofficereit.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/city-office-reit-announces-first-quarter-2025-earnings-release-and-conference-call-302417510.html
A REIT owns one or more properties and distributes income from those properties to investors. A REIT ETF
is an exchange-traded fund that owns a portfolio of different REITs
REITs must pay out at least 90% of their taxable profits to shareholders as dividends
REIT companies are exempt from most corporate income tax
Most REIT dividends are taxed as ordinary income at the investor's marginal tax rate rather than the lower qualified dividend rate
any appreciation is also subject to capital gains taxes
Holding REITs in tax-advantaged accounts like individual retirement accounts can defer or eliminate taxes on distributions
potentially making them more tax-efficient for some investors
Note that some REIT distributions may be classified as a return of capital
These are not taxed immediately but instead cut the investor's cost basis in the REIT shares
This can result in higher capital gains taxes when the shares are eventually sold
U.S. Securities and Exchange Commission. "Investor Bulletin: Real Estate Investment Trusts (REITs)," Page 1
U.S. Government. "Cigar Excise Tax Extension of 1960."
Brad Thomas. "The Intelligent REIT Investor Guide," Pages 191-193
NAREIT. "Global Real Estate Investment."
Nareit. "REIT Industry Fact Sheet."
Internal Revenue Service. "Topic No. 404 Dividends."
Internal Revenue Service. "Topic No. 409 Capital Gains and Losses."
Internal Revenue Service. "Tax Cuts and Jobs Act, Provision 11011 Section 199A - Qualified Business Income Deduction FAQs."
Internal Revenue Service. "Publication 515: Withholding of Tax on Nonresident Aliens and Foreign Entities."
U.S. Securities and Exchange Commission. "Investor Bulletin: Real Estate Investment Trusts (REITs)," Page 1-4
Moss Adams. "Tax Benefits of REITs for Real Estate Firms, Sponsors, and Investors."
Standard Life Investments has converted its Property Income Trust (SLIPIT) to a REIT (Real Estate Investment Trust) to ensure greater accessibility and tax efficiency for investors
REITs are ideal for wholesale investors who want to buy into the commercial property sector
using the real estate expertise and team ethos within a reputable fund management house
SLIPIT was launched as a Guernsey-based investment company in December 2003
to provide investors with an attractive level of income with the prospect for income and capital growth by investing in a diversified portfolio of UK commercial real estate
Standard Life Investments has managed the trust since inception and Jason Baggaley has been the manager since 2006
SLIPIT hasa market cap of £191m (at 31 Dec 2014)
and an investment portfolio of direct assets valued at £269.9 million
which at the end December 2014 represented an annualised yield of 5.9%
Standard Life Investments said: “SLIPIT has been a very successful investment vehicle for the past ten years and we fully expect it to continue to deliver robust returns for investors
We see a growing trend for Guernsey property investment companies to convert to REITs as they offer investors a more established
Our priority is always to existing shareholders
protecting their value and ensuring there is no dilution
Jason Baggaley will continue to take an active approach to managing the property portfolio in the Company to maximise returns and currently has a fully invested portfolio of office
industrial and retail assets that we believe provide the prospect for attractive returns as rents and capital value increase at this point in the real estate cycle.”
In 2014 SLIPIT won two awards: the Property category at the ‘Investment Company of the Year’ awards
hosted by Investment Week in London and the Investment Adviser 100 Club Awards
In 2014 SLIPIT’s equity base doubled through share issuance and strong investment performance
Also in 2014 (November) SLIPIT purchased a portfolio of five industrial and logistics units for £23.75 million
The purchase was funded from equity raised earlier that month
Cheltenham and Milton Keynes total 390,490sqft
The units are all single-let and have scope for further asset management
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The lack of available debt has hampered the investment market in every sector of commercial real estate
The rapid spike in interest rates didn’t just make it harder to finance real estate deals — it ended an era of wild spending from venture capital firms
panelists said at Bisnow's International Life Sciences & Biotech Conference last week
Real estate investors say they remain confident that demand will recover eventually
But since they're flying blind on future interest rates
they aren't making bets on when the horizon will appear
“We’re looking to take a hell of a lot less risk,” The Davis Cos
Chief Investment Officer Quentin Reynolds said
The life sciences sector's rising vacancy is more due to new construction delivering with empty space than to shrinking footprints and expiring leases at older buildings, Ventas Managing Director Brian Newman said
two years ago it was pretty typical for venture capitalists to tell portfolio companies to 'Get ahead of the real estate demand you’re going to have because we want you to grow and meet your future needs fundamentally," he said
adding that today VCs are telling their companies to "wait and see what happens."
In other sectors, the availability of financing is one of several factors in real estate decision-making for occupiers. But in life sciences — especially in emerging fields — a high percentage of potential tenants are pre-revenue, making the availability of financing the ultimate factor in real estate strategy, Berkadia National Head of Life Sciences Sabrina Solomiany said
Enthusiastic investors pushing their portfolio companies to prepare for explosive growth was the driving force behind those companies searching for large blocks of space, just as it was for the 2021 rash of initial public offerings from life sciences startups before their clinical trials were completed, SmartLabs Vice President of BioScience Services Dipankar Ghosh said
Since rising interest rates began to affect the financing environment last summer
VC investors have been much more demanding of companies to show promising results before funding the next stage of growth
companies that get funding when capital resumes flowing could be stronger potential tenants
“This infusion of rigor in terms of screening companies and their science is a great event for the future of the [life sciences] space,” EQT Exeter Life Sciences Chief Investment Officer Thomas Wang said
“The macro trends that really drive this space are compelling
The question of when conditions will improve for life sciences is impossible to answer until the market has more clarity on the future of interest rates
Property investors who seek short-term returns
“The recycling of capital into new vehicles is slowing and quite difficult,” Wang said
“The opacity of the next 24-36 months is very
Because of that opacity, capital partners are behaving with historically high levels of caution, TPG Real Estate's Andrea De Leon said
Sponsors soliciting investment are having a hard time laying out the case for choosing real estate over safer investments when the yield on government bonds is so high
“It’s very hard for me to tell you what the actual [initial rate of return] would be,” The Davis Cos.' Reynolds said
“I squirm a lot when people ask me to try to pinpoint IRR.”
Whether on the public market or through additional rounds of private fundraising
new infusions of capital typically come with a delay of several months before a company is ready to commit to physical expansion
few panelists expressed optimism that the recovery will resemble previous cycles
“It’s going to take a little bit longer this time
but we are seeing good platforms with good management and great data get funded,” Vault Advisors Managing Partner Sava Kobilarov said
Considering the unprecedented scale of capital raising in 2021, some of the speculative development that started in response will not absorb at the speed or rent levels their developers anticipated, King Street Properties Chief Investment Officer Robert Albro said
The most likely candidates are buildings at sites that wouldn’t have been considered in 2019
“We’re starting to see real winners and losers
which we really didn’t see for many years when almost everything was leasing,” Albro said
There will be some projects that aren’t going to be successful
but it comes down to the original site selection.”
At properties with the right combination of location and debt-burdened or otherwise distressed owners, this time is the best opportunity for those with equity at hand to provide rescue capital and position themselves to take over a property if the initial sponsor can’t hang on
“There is going to be some shakeout; some people chased the market late,” he said
but people who say they want to be in distressed markets never have a good time when they’re in them.”
See below for more photos from Bisnow's International Life Sciences & Biotech Conference
held at the Pennsylvania Convention Center in Philadelphia on Oct
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Bright spots amongst the grey for Mexico's real-estate market
Mexican Reits – Fideicomisos de inversion en Bienes Raices, or Fibras – have grown rapidly over the last five years
jumping from just one in 2011 to around a dozen in early 2016
That swift expansion has been the envy of other Latin American countries as the region seeks to shift real estate funding from private capital to public markets
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Southern Damaraland is not an environment you would expect humans to live in.Credit: Alamy
Stepping out of my safari vehicle at De Riet village
in the middle of the desert in Namibia's southern Damaraland
I feel as though I am stepping onto the surface of the moon
and just about the last place on Earth you would expect human beings to be able to survive
And yet survive is exactly what the Riemvasmaker people
who live in the handful of aluminium shacks we're now walking towards
have done since they were first "relocated" here in 1973
Refugees who fled tribal conflict in Namibia in the 1870s and settled in neighbouring South Africa in a so-called coloured reserve
the Riemvasmakers were then forcibly moved here when the apartheid government decided to use their villages as a military testing site
My local Bench Africa guide ushers me through a crude wooden fence and into a courtyard area beside a turquoise-coloured shack
where we're greeted by 79-year-old local William Basson
Within minutes of offering us seats in the shade
Basson begins telling us his story in Afrikaans
as his two-year-old grandchild plays in the dirt beside us
De Riet Namibia with Bench Africa tours.Credit: Bench Africa
my family and I were put on a train called Black Spot Removal and dropped off in Namibia
which at that point was South West Africa," says Basson
He and hundreds of other Riemvasmakers were left in a place called Otjiwarongo
But lions in the area were eating their livestock
and so the following year they were moved here to De Riet
far from their ancestral home and cut off from the world – no telephones
Basson and the other villagers had no choice but to start from scratch
figuring out how to live in harmony with the desert-adapted elephants that also lived (and continue to live) in the area
a small schoolroom and other basic infrastructure for the settlement
when South Africa began to transition from apartheid and a democratic government was formed
De Riet's Riemvasmaker people were offered a return to the land from which they had been forcibly removed 21 years earlier
never," says Basson "They must bury me here in Namibia."
one of Africa's main ecotourism operators
moved into the area and opened Damaraland Camp
the elegant desert lodge I have been staying in
They aligned with the local Riemvasmaker community
training and employing members to work in the lodge and paying them a share of revenue
a partnership that continues to help the community today
I leave Basson and De Riet with mixed emotions
Distressed by the idea of any person being plucked from their home
forced to abandon what they love and deposited in the middle of nowhere
left to fend for themselves; guilty for having had such an easy life; glad
that the inhabitants of De Riet were tenacious enough to survive and thrive out here in the desert
and that they and their grandchildren now have a place they so strongly identify as home
Nina Karnikowski travelled as a guest of Bench Africa
traveller.com.au/namibia
namibiatourism.com.na/
South African Airways flies from Perth to Johannesburg daily (11 hours), then connects to a two-hour flight to Windhoek, Namibia, using codeshare partner Virgin Australia. See flysaa.com
Bench Africa's 11-day self-drive safari itinerary includes a visit to the De Riet community, and other Namibian sites including Sossusvlei, Damaraland and Etosha National Park. From $4680 a person. See benchafrica.com
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in the middle of the desert in Namibia's southern Damaraland
who live in the handful of aluminium shacks we're now walking towards
where we're greeted by 79-year-old local William Basson
far from their ancestral home and cut off from the world \\u2013 no telephones
De Riet's Riemvasmaker people were offered a return to the land from which they had been forcibly removed 21 years earlier
one of Africa's main ecotourism operators
South African Airways flies from Perth to Johannesburg daily (11 hours)
then connects to a two-hour flight to Windhoek
Bench Africa's 11-day self-drive safari itinerary includes a visit to the De Riet community
and other Namibian sites including Sossusvlei
Maybe the homeless will appreciate the irony, because to get a grip on the foundations of the crisis-hit Home Reit, you have to go back to two former pupils of Stowe public school.
One, as records from The Peerage website show, is Alexander de Meyer, 44, the son of Count Hubert Charles de Meyer and Lady Susan Ankaret. The other is Jonathan Elkington, also 44, the owner of Chipchase Castle, a Jacobean mansion set in more than 3,000 acres of Northumberland and a go-to venue for shooting, fly fishing and weddings, “the perfect start to your happily ever after”.
Together, they brought the world Alvarium Investments, the wealth manager that created Home Reit,
Outros sites SchrodersIr para Schroders GlobalSchroders CapitalFornecendo acesso a uma gama de oportunidades de investimento em ativos privados
Portugal | Investidores ProfissionaisO que fazemosO que fazemosNum cenário de investimento em rápida evolução
os nossos clientes precisam de gestores dinâmicos com experiência em todo o espectro de investimento para fornecer soluções inovadoras
Cada uma de nossas estratégias é projetada para atingir seus objetivos
inspiradas em anos de trabalho em parceria com clientes de pensões e seguros do Reino Unido
o nosso objetivo é gerar o melhor desempenho do investimento através de decisões dinâmicas
Gostaríamos de informá-lo de que a designação do Schroder Investment Management (Luxembourg) S.A
("SIM Lux") mudou para Schroder Investment Management (Europe) S.A
("SIM Europe") em 27 de junho de 2018
Para mais informações consulte a Carta aos Acionistas
Schroder International Selection Fund é referido como Schroder ISF neste website
Schroder Alternative Solutions é referido como Schroder AS neste website
não constituindo uma recomendação para investir no título/setor/país acima mencionado
25 Apr 2025 By Chris Mann
CIO for Edmond de Rothschild’s UK Real Estate Investment Management business
They discuss the platform’s conviction-driven investment strategy
which focuses on delivering much-needed rental housing across the UK
Edmond de Rothschild REIM was one of the first movers in the UK for-profit affordable housing space
but the Rothschild family’s history in financing delivery stretches back centuries
DJ Dhananjai kicks off the conversation by revisiting the 1890s
when the family first ventured into affordable housing in London’s East End
Edmond de Rothschild REIM now manages over 3,500 homes across the UK while the wider group manages over €12 billion of real estate across residential
But despite the family’s historical roots in the sector
DJ points out that their presence in the UK housing market may not be as widely known as in Europe
where they have a more prominent footprint
Edmond de Rothschild REIM UK’s focus on affordable private rented sectors and delivering housing with social impact has positioned them as a key player in the UK real estate landscape
albeit with a quieter profile compared to other well-known organizations
But as traditional registered providers retreat from the market in the face of higher operating costs
and central and local government cry out for new investment
the platform is now looking to ramp up activity
Appropriate housing for all is one of the most significant drivers in the prosperity and growth of households and the wider economy
as they focus on the social impact of real estate investment.
DJ explains that the investment process at Edmond de Rothschild is driven by the philosophy of the house
with a focus on customer-first approaches for both occupiers and clients
and what type of occupier does the investment serve?” he asks
reflecting the firm’s commitment to integrating social
and financial performance in their investment strategy
Edmond de Rothschild’s purpose goes beyond financial returns by tracking and reporting on environmental and social impact
with a proprietary social impact framework
The framework is delivered by the investor’s in-house
vertically integrated platform – which has capabilities across fund management
property management and a captive housing association
James highlights the firm’s strong performance in environmental metrics
where Edmond de Rothschild was ranked as one of the best performers in Europe last year
GRESB focuses on energy consumption and the efficiency of buildings
with the goal of rewarding managers who actively improve their assets’ sustainability
underscoring the firm’s commitment to improving both operational performance and environmental outcomes
Private sector institutional investment managers – particularly those backed by long-term
patient capital – are the most likely enablers of housing delivery
He notes that residential assets are closer to infrastructure products than other real estate sectors and that Edmond de Rothschild focuses on investing in stable
These areas are seen as less volatile and offer resilience in terms of rental income
“Our tenants are there out of necessity,” DJ explains
which ensures a more stable and predictable income stream
Edmond de Rothschild’s investment strategy is geared towards holding assets over the long term
DJ stresses that if investors aren’t willing to commit to a 20-year horizon
they may not be the right fit for EDR’s strategy
The company’s ethos is deeply rooted in long-term thinking
both in terms of financial returns and social outcomes
Residential investment doesn’t come without its challenges though
mentioning specifically rising construction costs
regulatory hurdles and a worsening skills crisis as barriers to delivery
the UK residential sector is maturing and becoming more investable
James notes that the level of data available for investment in the residential sector is improving
which helps make the market more predictable and lowers the risk for investors
they both agree that there are key barriers to increasing private capital in housing
particularly the high tax burden on development
They call for a greater focus on improving the tax framework to attract international capital and create more incentives for investment in housing
This is especially the case for specialist sub sectors such as affordable housing for the elderly and vulnerable populations
where the circular economic benefits are very apparent
DJ and James believe that the UK government will play a key role in making housing more viable and accessible
DJ anticipates that the government may reintroduce regional development agencies to help unlock land for housing development and facilitate the delivery of affordable homes
purpose-driven housing market is gaining momentum
with the private sector increasingly working alongside the public sector to address housing shortages and deliver housing that serves both investors and the wider community
DJ and James from Edmond de Rothschild provide valuable insights into the firm’s purpose-driven approach to residential real estate
and long-term investment strategies sets them apart in a market where short-term profits often dominate
affordable housing and a commitment to creating lasting value for both investors and communities
2025 is already shaping up to be yet another milestone year for the platform
as it continues to grow its portfolio and team across the UK
check out the full article and access the social impact framework on the Edmond de Rothschild website or Property Week
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in conversation with Property Week at MIPIM 2025 shares his 'cautious optimism' for the UK market and the year ahead
and discusses the opportunities the industrial logistics sector presents to UK government as it looks to meet its sustainability and data targets
the evolving healthcare real estate market
and how the landscape of operational real estate is shifting
Property Week’s GSFNZ Mipim panel from March 2025
What are the biggest challenges facing both residential and commercial Real Estate businesses when it comes to sustainability
and how are Lloyds supporting their clients to overcome these
sits down with Dan Batterton who has been at the forefront of one of the UK’s most transformative sectors in real estate for over a decade
Property Week’s 2025 Power of Proptech survey
seeks to explore the robustness of this digital infrastructure and how prepared businesses are to meet the technological challenges facing the property sector
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We are thrilled to announce our Second Annual Delaware State of the Market
Please join some of the leading figures in Delaware real estate for a real-time look at the state of the CRE market
Our all-star panelists will look at the neighborhoods/submarkets that are showing resurgence
what are the most successful asset classes
join us before and after the program for plentiful schmooze time
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The down-and-out REITs worth buyingWant to know which real estate investment trusts to add to your portfolio at bargain prices
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This year’s bad performer can often be next year’s investment star. Real estate investment trusts (REITs) are the second-worst performing sector since January
chief investment officer at Atlas Funds Management
says there are two reasons for the REIT sell-off
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Morgan & Morgan provided legal counsel to Inversiones Inmobiliarias Dream Properties (“Dream Properties”)
in the constitution and registration before the the Superintendence of the Securities Market of Panama (the Superintendencia del Mercado de Valores or “SMV”)
as a Sociedad de Inversión Inmobiliaria (the Panamanian equivalent of a Real Estate Investment Trust or “REIT”) in compliance with the requirements to enjoy the special tax regime set forth in paragraph 2 of article 706 of Panama’s Tax Code
Morgan & Morgan Legal provided advice to Dream Properties in registering with the SMV and the placing its Participative Shares through the Latinamerican Stock Exchange
The REIT was authorized by the SMV to publicly offer up to 1,000,00 of its Participative Shares
Series A and Series B Participative Shares
REIT’s that comply with the above mentioned requirements of registration before the SMV
BVP and the General Revenue Office (the Dirección General de Ingresos or “DGI”) of the Ministry of Economy and Finance
are exempt from the payment of income tax at the corporate level
Shareholders of a REIT pay income tax on distributions received from the REIT at the rates set forth in the Tax Code
all REITs are required to withhold 10% of amounts distributed to shareholders in the form of advanced income tax
which withholding the shareholder of a REIT may decide to consider as the definite and final income tax to be paid for the received distribution
Insignia Financial Advisors acted as arranger
MMG Bank Corporation acted as Payment and Transfer Agent
Custodian and Placement Agent of the REIT and MMG Asset Management Corp.
and international associate Miguel Arias M
Morgan & Morgan advised Desarrollo Inmobiliario del Este
(“DIESA”) in the process of a changing their corporate structure to that of a Sociedad de Inversión Inmobiliaria (the Panamanian equivalent of a Real Estate Investment Trust or “REIT”)
in order for DIESA to carry out an initial public offering of its shares as a REIT
DIESA had to be registered as a REIT before the Superintendence of Capital Markets of Panama (the “SCM”) and its shares had to be listed with the Latin American Stock Exchange
we advised DIESA with the drafting of the amendment to its articles of incorporation
as well as the offering memorandum and other documentation of the REIT
file such documents with the SCM and Latinex and lead the client through the administrative process to obtain final approval for the public offering of the shares and their listing and placing through Latinex
REIT’s that comply with registration before the SCM
The less burdensome tax regime of the REIT will allow DIESA to reduce its fiscal expenses
pay outstanding debts and improve its cash flow
MMG Bank Corporation has been engaged as Payment and Transfer Agent
as well as Custodian and Placement Agent of the REIT
DIESA is the owner of the Business Park complex
a business center located in Costa del Este
It comprises 5 buildings within an approximate area of 87,000 square meters
Tenants of the Business Park include leading local and multinational firms such as Telefonica
Partner Ricardo Arias and international associate Miguel Arias M.
There’s been lots of changes happening at Sunni Knoll Farms
Especially as the operation slowly switches from the second generation of van de Riet’s to the third
John (Class of ’80) who farms alongside his son
The significant technological upgrade to the way in which they milk their 110-cow herd has changed the way they farm and their lifestyle
“The cows here no longer work 9-5,” says second generation
“It has improved our quality of life as well as the cows,” added John
“We spend more time with the animal now but its more quality time
We are not just using the animals to make a living
A better life for the cows means a better life for the farmer.”
John purchased the farm from his parents and grew the operation
Joey always wanted to be involved on the farm and after attending NSAC
as well as spending time working on farms in Australia
eventually returned to Sunni Knoll with a real interest in growing crops
Working together the farm is now fully sustainable
“We are now growing over 600 acres of forages
Sarah and their three children on the farm
and has a passion for cropping and a desire to make milking more efficient
but the app can tell us who has been milked
who attempted to be milked and who still needs to be milked,” he explained
This information is vital to maintaining efficiency and enabling the farm to keep and maintain a smaller quality herd
It will also inform of any abnormalities and pre-detection of illness such as mastitis
“We can spend more time monitoring the health of the animals.”
Adjusting to the robots was a short three-week period for the cows
the cows moved in three groups to ensure all were milked within a 24-hour period
Food entices the animals to the milker and keeps them in place
while a small burst of air sends them on their way
Timing was of the essence when the van de Riet’s added the new robotic system
in a new space and fully functioning on one side of the barn
the rest of the herd was milked in the morning
equipment moved in to be installed and by evening
The van de Riet’s were so impressed with the addition of the robots that in late November
a robotic manure scraper was added to the “staff”
“Cow comfort is a priority,” explained John
“The heifers utilize comfort mats while the older ladies lie on sand
“Even the robotic manure scraper will be less disruptive than a human being present.”
Every decision on Sunni Knoll farm is based on what is best for the farm and for the family
With recent events around food security highlighted by the pandemic
the importance of sustainability is at an all time high
“We want Nova Scotians to appreciate the products our farmers have to offer and to be proud of where they came from,” she added
The extended family recently went out to dinner to celebrate John’s birthday- something that never would have happened prior to the transition to robots
The future is looking sunni for the van de Riet’s
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Legacy Hotels Real Estate Investment Trust (“Legacy” or the “Trust”) (TSX: LGY.UN)
Cadbridge Investors LP (a limited partnership formed by Cadim
a division of the Caisse de dépôt et placement du Québec
“Cadbridge”) and InnVest Real Estate Investment Trust (“InnVest”) (TSX: INN.UN) today announced that they have entered into a support agreement (the “Support Agreement”) pursuant to which LGY Acquisition LP (a limited partnership formed by Cadbridge and InnVest
the “Offeror”) has agreed to offer $12.60 in cash per unit (the “Offer”) to acquire all of Legacy’s outstanding units (including units issued upon the exchange of outstanding exchangeable shares or the exercise of options prior to completion of the Offer)
The all-cash transaction is valued at approximately $2.5 billion
The purchase price under the Offer represents a 20% premium over Legacy’s 30-day average trading price on the Toronto Stock Exchange (the “TSX”) on February 28
the last trading day prior to Legacy announcing the formation of its Special Committee to explore strategic alternatives
Following a thorough review of the Trust’s strategic alternatives
and recommendation of the Special Committee
Legacy’s Board of Trustees has unanimously approved the transaction and unanimously recommends that the Trust’s unitholders tender their units to the Offer
Legacy’s largest unitholder representing 20.4% of the outstanding voting rights
has entered into a lockup agreement with the Offeror to tender its entire ownership interest in Legacy to the Offer
Under the terms of a post acquisition reorganization
Legacy’s portfolio of assets will generally be allocated with Cadbridge owning the large Fairmont managed hotels and InnVest owning primarily Delta hotels
“The proposed transaction reflects our commitment to deliver value to our unitholders,” stated Neil J
Legacy’s President and Chief Executive Officer
we have assembled an unmatched portfolio of luxury and first-class hotels
We believe the price offered by the Offeror fairly reflects the underlying value of these assets
Westmont and InnVest are well-respected investors with a strong track record in the lodging industry.”
Real Estate of Caisse de dépôt et placement du Québec added
“This acquisition provides us with an important ownership platform in this industry
well-known brands and an irreplaceable collection of hotel real estate
We look forward to working with management and the hotels.”
President and Chief Executive Officer of InnVest
“Legacy’s portfolio consists of a diversified collection of well-branded hotel assets
We are thrilled to have the opportunity to purchase these quality assets and establishing InnVest as the largest Canadian hotel REIT.”
The Support Agreement allows Legacy to pay its regular quarterly distribution for the quarter ended June 30
and for Legacy to continue to pay its quarterly distribution
prorated through the closing of the transaction
The Trust may terminate the Support Agreement under certain circumstances upon payment to the Offeror of a break-up fee of $46 million
The Offer will be subject to customary conditions
including the tender to the Offer of a sufficient number of units that will result in the Offeror owning at least 66⅔% of the outstanding units
obtaining required regulatory approvals and the absence of a material adverse effect
If a sufficient number of units to meet the minimum tender condition are tendered to the Offer
the Offeror has agreed to use all commercially reasonable efforts to acquire the remaining units through a subsequent acquisition transaction or compulsory acquisition
Morgan Stanley and RBC Capital Markets acted as financial advisors to Legacy
Avington acted as financial advisor to Cadbridge and InnVest
Legacy’s Board of Trustees has received an opinion from each of Morgan Stanley
RBC Capital Markets and BMO Capital Markets that the consideration under the Offer is fair from a financial point of view to the unitholders of Legacy
for a list of the risks inherent in the activities of the Trust
All statements in this news release are qualified by such cautionary statements
These statements are made as of the date of this news release and except as required by applicable law
Legacy disclaims any intention or obligation to update or revise any such forward-looking statements
Legacy is the largest Canadian lodging real estate investment trust
focused on the ownership of luxury and first-class hotels
With a presence across Canada and in two top U.S
Legacy’s portfolio of 25 hotels provides geographical diversification across major urban centres
The portfolio includes landmark properties such as Fairmont Le Château Frontenac
The Fairmont Empress and The Fairmont Olympic Hotel
Legacy units trade on the Toronto Stock Exchange under the symbol LGY.UN
The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2006, it held CA$143.5 billion of net assets. One of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate. For more information: www.lacaisse.com
a division of the Caisse de dépôt et placement du Québec and a member of the Caisse's Real Estate Group
is a global real estate investment manager
Cadim invests in a diversified range of equity and financing products through a network of affiliates and prominent partners in the United States
Cadim is an opportunistic investor whose success relies on its capacity to close large-scale transactions and to take advantage of key leverage opportunities
total assets under management totalled $36.3 billion
Westmont is one of the largest private owners of hotels in the world
owning and/or managing over 400 hotels globally with operations in North America
InnVest Real Estate Investment Trust holds Canada’s largest hotel portfolio together with an interest in Choice Hotels Canada Inc.
the largest franchisor of hotels in Canada
The hotel portfolio currently comprises 135 hotel properties with over 15,000 guest rooms
operated under internationally recognized franchise brands
InnVest’s trust units and outstanding convertible debentures trade on the Toronto Stock Exchange under the symbols INN.UN