The lines between public and private real estate capital markets are blurring, according to Todd Stender, Managing Director at LNL Capital, who says recent high-profile joint venture deals struck by Realty Income and Prologis are likely to trigger a wave of similar partnerships across the REIT sector.
In an interview with REITsWeek, Stender pointed to Realty Income's joint venture with Apollo Global Management and Prologis's partnership with Singapore's GIC as early evidence of a structural shift in how large-scale real estate platforms access capital.
"When industry leaders like Realty Income and Prologis partner with formidable institutions such as Apollo or GIC, it typically reflects disciplined capital allocation and the proven ability to access large, cost-effective capital without diluting current shareholders," he said.
Stender described the trend seen with REITs as one that had been years in the making, drawing a parallel to the aftermath of the global financial crisis, when private credit stepped in after traditional banks retreated.
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