< The 2015 All-America Research Team
Michael Bilerman & team
Citi
First-Place Appearances: 7
Total appearances: 21
Team debut: 1973
The 11-member Citi squad under the direction of Michael Bilerman secures second-place honors for a sixth consecutive year. The analysts hold a positive view of U.S. real estate investment trusts, Bilerman says, owing in part to the “significant amount of capital from all parts of the world chasing U.S. real estate,” which will lift net asset values. The companies boast appealing multiples and solid dividend yields, he notes, and “wide access to attractively priced capital” enables them to bolster earnings with refinancings, acquisitions and developments. Regarding commercial REITs, in particular, the group forecasts that with new supply under control and a positive economic background, real estate fundamentals should remain firm, resulting in “stronger rent and occupancy increases and overall solid same-store net operating income growth,” the 40-year-old crew chief explains. More broadly, he concludes, REITs are “largely domestic and stable — positive attributes in an uncertain global macro environment.” Accordingly, the Citi team recommends that clients prefer a panoply of companies, such as Boston Properties, an office building owner; Chicago-based multifamily home developer Equity Residential and mall operator General Growth Properties; Bethesda, Maryland’s Host Hotels & Resorts; and New York–headquartered Vornado Realty Trust, a diversified commercial player. Bilerman “is one of the most experienced analysts in this sector — where, given the long-cycle nature of the industry, experience is worth its weight in gold,” applauds one investor.
