Ch-ch-changes. Credit markets are frozen. Stock markets around the world are plummeting. Economic growth is shrinking. We’ve all watched as brand name companies collapse, banks are effectively nationalized and small businesses fall victim to the credit crisis. But that’s not all the change underway. By the time you read this, we will know the identity of the president-elect in the U.S., and America will be preparing for a change in administration and a new Congress.
Given the change all around us, this month’s issue of Real Estate Portfolio is dedicated to a look at the credit crisis from the ground up. As you will see, many of our features start with the question, “where do we go from here?”
Whether examining the debt markets in “Navigating the Credit Crisis,” or reviewing the economy across all REIT real estate investment sectors in “Shockwave,” or asking whether REIT volatility is here to stay in “Wild Ride,” there is one common thread: REITs may be in the midst of the whirlwind with everyone else, but most companies are well-prepared to weather the storm.
As we wrap up this roller coaster of a year, business expectations and plans for 2009 will certainly be under review and reassessment. However, one thing is certain heading into next year: the attributes which made real estate investment through REITs compelling in the past will be even more highly valued in 2009: diversification, dividends, liquidity, transparency and performance.
Paving the Way—Simon Says
As we deal with the whirlwind and prepare for the future beyond, it is useful to hear from one of those who helped “pave the way” for the modern REIT marketplace. In this issue, David Simon, CEO of Simon Property Corporation, and past chair of NAREIT, discusses how he sees leadership and how acquisitions, globalization and sustainability will “pave the way” for Simon Property in the future. To read more, turn to “Simon Says.”
Honoring the community leadership shown by companies like Simon, in this issue we also recognize strides several of our member companies have made in corporate social responsibility and illustrate what they are doing to give back. To read more on how REITs donate time, services and goods for the greater good, turn to “Social Responsibility.”
Erin Corcoran
Managing Editor
Within the Whirlwind