EXPECTED increases in trade are improving the prospects for industrial REITs (real estate investment trusts) as more transport facilities are built to accommodate greater cargo flow, says the American Journal of Transportation.
Listed REITs with exposure to expanding US ports, anticipating benefits from the expansion of the Panama Canal, are likely to appreciate in value, said the report.
Industrial and diversified REITs have the highest exposure to the Houston area with a total of 21.8 million square feet spread among 208 properties.
The Baltimore and Hampton Roads metropolitan statistical areas (MSA) have industrial properties owned by industrial and diversified REITs totalling 11.7 million square feet.
"With the completion of the Panama Canal expansion on the horizon, REITs could reap the benefit of asset exposure to the US ports that stand to immediately benefit from the canal's increased traffic, said the report.
Industrial REITs own and manage industrial properties including warehouses and manufacturing centres. In Singapore, there are only two industrial REITs below book value, according to Motley Fool financial portal.
WORLD SHIPPING
17 August 2014 - 21:37
REITs stand to gain from ports ready for Panama Canal expansion: AJOT
EXPECTED increases in trade are improving the prospects for industrial REITs (real estate investment trusts) as more transport facilities are built to accommodate greater cargo flow, says the American Journal of Transportation.
WORLD SHIPPING
17 August 2014 - 21:37
REITs stand to gain from ports ready for Panama Canal expansion: AJOT
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