Optimizing strategy, structure, and communications.
Green Street works with management teams and boards of directors to create public and private market strategies that maximize value, enhance competitive positioning, and deliver on investor expectations. We provide insight and guidance—informed by our 30+ years researching real estate companies—on the key decision points that separate best-in-class real estate companies from the pack. Areas of service include:
- Evaluation of strategic alternatives
- Capital allocation strategies (e.g., acquire vs. develop vs. buy back stock)
- Sector allocation and market selection
- Balance sheet optimization
- Corporate governance / executive compensation
- Investor communications / supplemental disclosure
- Retailer real estate strategy
Strategic Advisory - Non-traded REIT Case Study
The Client: Board of directors of a non-traded REIT
$250 million to $3.2 billion
As a large, non-traded REIT approached the end of its expected holding period, the board of directors sought independent advice on the firm’s liquidity options as part of its fiduciary duty to shareholders. In particular, the board sought to understand the impact each strategic alternative would have on total returns with a thorough evaluation of the risk factors associated with each liquidity scenario.
Green Street identified potential private and public market alternatives including a portfolio sale, the transition to an open-end fund structure, execution of a follow-on offering, and public listings in the U.S. and Canada. For each scenario, the Advisory & Consulting Group provided its perspective on the potential benefits, conflicts, feasibility, and share price impact, leading to a recommendation that would provide liquidity, while maximizing the REIT’s value as an ongoing entity. The analysis included a thorough evaluation of the company’s operating portfolio in comparison to its public peers, with insight into its competitive position in key markets and the timing and expectations for future value creation. Green Street also provided a detailed roadmap of each strategic option, including timelines, lessons from historical experience, and sensitivity analyses.
The non-traded REIT is following Green Street’s strategic advice with the aim of unlocking as much as a 20% increase in share value. The Advisory & Consulting Group is working on similar assignments for other non-traded REITs.
Best Practices Case Study
The Client: Vicinity Centres
Assets Under Management
Green Street Advisory was hired by Vicinity Centres, a premier Australian retail REIT, to advise on Vicinity’s corporate strategy in their inaugural year after the 2015 merger of Federation Centres and Novion Property Group was completed.
As Vicinity continued to focus on becoming the leading retail REIT in Australia, Green Street provided Management and Board members with a comprehensive understanding of best-in-class REIT practices in the U.S. and Europe that were applicable to the Australian REIT market. Green Street provided thought leadership on a variety of Best Practices topics, including balance sheet management, capital allocation strategies, corporate governance, and executive compensation structuring.
Green Street benchmarked the company’s strategy against best-in-class U.S. peers to optimize shareholder alignment and highlighted specific ways for the company to create additional shareholder value while attracting global institutional capital.
REIT Conversions & Real Estate Monetization Alternatives
Explore strategies for real estate monetization
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