Alexander D. Goldfarb is a Managing Director and the Senior REIT Analyst in the research department of Sandler O’Neill + Partners, L.P. In his exclusive interview with the Wall Street Transcript, Mr. Goldfarb details his investment philosophy and reveals his top picks in the REIT sector. He declares that the market reaction to Amazon’s encroachment on retail has been overblown: “In fact, right now, and for the past year or so, it’s been more a case of just a disconnect rather than a prophecy.”
“Retail is doing well. When you look at the companies and you see 95% occupancies, low-double-digit re-leasing spreads, an ability to backfill tenants who are moving out — from those stats you’d say, “The sector is fine.”…Our view is that given we’ve been in this internet-competitive environment for a few years now, if that was really the case, you’d see it in the stats. You’d see it in occupancy rates declining. You’d see it in an inability to generate positive mark to markets on rent. But when you look at what’s going on, the stats tell a different story.”
Mr. Goldfarb gives a number of his top picks and details his predictions of above market returns:
“Our top pick for the year is AvalonBay (NYSE:AVB). Apartments are recovering. As a developer, they actually get a quarter of their earnings from their development program, which has been exceeding expectations because they started these projects long ago, they own the land, and they are also very good at it. ”
To see the rest of this expert’s top REIT picks, read the entire interview at the Wall Street Transcript.
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