Discounts in U.S. Real Estate Stocks Set Stage for Buyout Spree

Bloomberg, Sept. 25, 2015–Mulholland, Sarah

Real estate investment trusts–companies that own properties such as luxury hotels, office towers and shopping malls — are trading at an almost 15 percent discount to what investors would pay for buildings individually, according to Green Street Advisors LLC. The gap, the biggest in five years, has been growing since May, pushing the odds of REIT buyouts to the highest since 2006.