Yet Another Value Podcast Rhizome Partner's Bill Chen's post-NAREIT takeaways
Jun 19, 2025
In this discussion, Bill Chen, a seasoned expert from Rhizome Partners, shares his insights on the multifaceted world of real estate investing post-NAREIT. He highlights key trends such as the resilience of public REITs against market stresses and the shifting dynamics in rental markets, especially in NYC and the Sunbelt. Bill navigates the complexities of grocery-anchored retail investments and the impact of AI on operations. His analysis sheds light on valuation divergences and investment opportunities in today's competitive landscape.
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Public REITs Show Resilience
- Public multifamily REITs show strong balance sheets with high-interest coverage ratios, indicating resilience.
- Construction activity has collapsed with starts down 70-80%, boosting fundamentals for existing assets.
Construction Plummets Except Data Centers
- Construction starts for most asset categories have plunged by up to 80%, except data centers.
- This decline is expected to tighten supply and support rent growth in multifamily sectors.
Multifamily REITs Offer Strong IRRs
- Public multifamily REITs have attractive forward internal rates of return (IRR) around 15-18%.
- Key assumptions include 3-4% rent growth and buying new properties at ~5% cap rate.