DC Uncertainty Looms High on REITs’ Radar

“After enjoying several years of growth following the economic crisis, investors are beginning to take a more cautious approach,” says BDO’s Stuart Eisenberg.

CHICAGO—Is the Trump administration the leading risk factor for REITs? Maybe not, yet a sizable percentage—44%—of the 100 largest public REITs cite concerns related to the new administration in their latest 10-K filings, according to BDO LLP. Twenty-six of the top 100 mention Trump by name in their filings, a total of 59 times.

Although the new administration per se didn’t top REITs’ concerns as measured by the 2017 BDO RiskFactor Report for REITs, the uncertainty around the timing and content of federal policy changes figures prominently in the conversation. In their 10-Ks, some REITs cited specific shifts in legislative and regulatory priorities that could have a material effect on their business, including travel restrictions, tax reform and the ongoing efforts to repeal and replace the Affordable Care Act.