Fitch: U.S. REIT Liquidity Still Weathering Choppy Waters

(The following statement was released by the rating agency)

Link to Fitch Ratings' Report: 1Q16 U.S. Equity REIT Liquidity: Navigating
Uncertain Waters

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=882411

NEW YORK, June 03 (Fitch) U.S. equity REITs have weathered the marketwide
selloff of earlier this year and are in an improved liquidity position, though a
Fitch Ratings special report says there are still some hurdles the sector needs
to overcome.

The big impediment so far this year has been capital issuance, which is down
compared to recent quarters. REIT capital issuance so far this year is 11.6%
lower than the same period last year. Common equity and unsecured bond issuance
also remains sluggish for REITs, with combined capital via these methods lagging
the same period in 2015 by 26.1%. Amid the decline, healthcare REITs are still
raising the most REIT capital among all major property types with 14.9% so far
in 2016, this after leading the way with 21.6% last year.

The weaker capital access is overshadowing what are still very much healthy
fundamentals for commercial real estate. Fitch expects fundamentals to remain
healthy and for cap rates to increase modestly, primarily for lower physical
and/or market quality assets. 'REITs are adjusting their bids for a higher cost
of capital while marginal buyers remain on the sidelines until the CMBS market
stabilizes,' said Managing Director Steven Marks.

That said, sector liquidity coverage remains strong and will likely remain so
into the second half of the year. '1Q16 U.S. Equity REIT Liquidity: Navigating
Uncertain Waters' is available at 'www.fitchratings.com' or by clicking on the
above link.

Contact:

Zachary Klein

Analyst

+1-212-908-0841

Fitch Ratings, Inc., 33 Whitehall Street, New York, NY, 10004

Steven Marks

Managing Director, Head of U.S. REITs

+1-212-908-9161

Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email:
sandro.scenga@fitchratings.com.

Additional information is available at www.fitchratings.com.

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