New specialty REITs may star in Trump’s infrastructure rebuild
Thomas Yeatts | S&P Global Market Intelligence
The REIT industry, led by a vanguard of potential new niche players, could play a significant role in president-elect Donald Trump’s plan to rebuild the country’s infrastructure via a range of new public-private partnerships, observers say.
In his “Contract with the American Voter,” Trump promises $1 trillion in infrastructure spending over the next 10 years, and he vows that his plan will be revenue neutral through its use of public-private partnerships, also known as “P3s,” and “private investments through tax incentives” — a financing approach that would represent a departure from the more traditional avenue of utilizing government-sponsored entities.
There are two main types of P3s: brownfield projects and greenfield projects. In brownfield projects, the public sphere cedes to a private entity — in this case a publicly traded REIT — a long-term concession for assuming responsibility for the operation and maintenance of a publicly owned asset. For greenfield projects, the REIT or other private entity would take part in the creation of new public assets by assisting in their design, financing, build-out and operation, and it would retain the right to earn revenue directly from the projects.Go Back
The time (at Blue Vault's 2nd Annual Broker Dealer Educational Summit) proved extremely informative.