Tuesday, July 16, 2013

Craig: Fed policies affecting cost of capital, property values via REIT.com

Scott Craig, portfolio manager with Eaton Vance Investment Managers, joined REIT.com for a video interview in Chicago at REITWeek 2013: NAREIT’s Investor Forum.

Craig discussed the Federal Reserve’s monetary policy and its impact on REITs and their cost of capital.

“There’s no question that Bernanke’s policies have significantly reduced the cost of capital in the commercial real estate business, including for REITs. That includes the cost of debt, the cost of preferred equity, and the cost of common equity,” he said. “Capital is very inexpensive and that has driven property values and has driven NAVs (net asset values) higher.”

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