NEW YORK & LONDON--(BUSINESS WIRE)--Fitch Ratings has published its second-quarter 2014 REIT Report Quarterly, which highlights research during the quarter.
On June 2, 2014, Fitch published its midyear outlook stating that the first six months of 2014 have been smooth sailing for U.S. equity REITs, with little change likely for the second half of the year. Fitch expects U.S. equity REITs will continue to have strong access to capital and solid liquidity. Additionally, property-level fundamentals should improve moderately across most asset classes.
On May 27, 2014, Fitch published its liquidity report stating that the median liquidity coverage ratio for select REITs is 1.9x for the April 1, 2014-Dec. 31, 2015 period, slightly down from the 2.2x ratio for the April 1, 2013-Dec. 31, 2014 period. None of the 62 issuers included in Fitch's latest report have sub-1.0x base case liquidity coverage, a first since we began publishing these reports in 2007.
On April 29, 2014, Fitch published a special report stating that share buybacks are becoming more appealing for U.S. equity REITs, though they come with additional risks over time for bondholders. REIT stocks outperformed broader indices during this past quarter. That said, trading levels are generally below net asset value, making share repurchases an intriguing use of capital, a trend that Fitch views negatively.
Other items in this edition of Fitch's 'REIT Report Quarterly' include:
--An overview of recent rating actions;
--Summaries of recently released REIT reports and criteria;
--Links to recent Fitch research.
'REIT Report Quarterly' is available by clicking on the link or at 'www.fitchratings.com' under the following headers:
Ratings and Research >> Corporate Finance >> REITs >> Research
Additional information is available at 'www.fitchratings.com'
Applicable Criteria and Related Research:
--'2014 Midyear Outlook: U.S. Equity REITs' (June 2, 2014);
--'1Q14 U.S. Equity REIT Liquidity Update: Marching to the Beat of the Same Drum' (May 27, 2014);
--'REIT Share Buybacks More Palatable' (April 29, 2014).
Applicable Criteria and Related Research: REIT Report Quarterly