The Value of Great REIT Management Teams: Capital Recycling

The most successful long term REITs practice sound capital allocation decisions.

One attribute that is very difficult to achieve successfully is capital recycling.

Capital recycling is the funding of acquisitions with proceeds from dispositions.

Ideally, a REIT can upgrade the quality of the portfolio over time without diluting cash flow per share or stressing the balance sheet.

Herein, we highlight two examples where the management team is not getting the appreciation it deserves.