On April 25, 2012, David Lari was quoted in a Law360 article about the fact that despite the real estate market showing positive signs, initial public offerings for real estate investment trusts, or REITs, remain few and far between.
While REITs have been relatively good to investors, many remain skittish, a fact that some attorneys find puzzling. According to the article, investors are looking for reassurance and want to see how other IPOs in other industries fare, such as the high-profile Facebook Inc. offering. As a result, there has been a backlog of potential REIT IPOs at the Securities and Exchange Commission.
“How many of those ultimately end up going forward is difficult to predict,” Lari said. “You generally need good timing on a macroeconomic basis, coupled with strong financials and a quality management team going, for you to get the institutional investors behind you and have a successful listing.”