Deerfield Capital - Competitors

Deerfield Capital Competition

Now Viewing Deerfield Capital's competition in: Real Estate Investment Trusts (REITs) (primary)

Recent Developments

REITs Invest in Slow Market - </strong>The US housing market continues to struggle amid a larger economic downturn, yet REITs see opportunity in the situation. According to industry analysts, a growing number of REITs are raising funds by selling stocks and bonds so that they can buy additional properties while market values are low. REITs raising funds span all aspects of real estate, from shopping centers to resorts and amusement properties.

REITs Go International - </strong>Problems in the US real estate market are causing some REITs to seek high returns in foreign markets, ranging from the Middle East to Russia, India, and China. Proponents of the strategy insist that returns outside the US will be higher for the foreseeable future than investments in the US. In general, analysts say that good investment markets include those where people are moving into cities at a high rate, which means that demand for real estate will increase near-term.

Investors See Positives in REIT Investments - Investments in REITs are steadily climbing, according to analysts, because REITs are generating better returns and dividends for investors at a time when other markets in the US are shaky. The National Association of Real Estate Investment Trusts (NAREIT) recently boasted a return rate of better than 10 percent over the past decade among its indexed companies, compared to S&P 500 growth of just above 4 percent.

Competitive Landscape

The health of the economy drives demand for REITs as investment vehicles. Profitability depends on the value of the properties in the portfolio, which in turn highly depends on real estate vacancy rates. Large companies have advantages in deal-making, and economies of scale in marketing, computer and infrastructure investment, and operations. Smaller companies can compete by specializing not only in real estate type, but by geography, though geographic focus can increase risks.

Full Industry Overview For Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US real estate businesses, which includes REITs, is forecast to increase at an annual compounded rate of 4.7 percent between 2007 and 2012.

Real Estate Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.