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The entire contents of this special report on the 25 largest public REITs are r 1996 Crain Communications Inc. Reproduction without permission is prohibited.
Beacon Properties
Boston, Mass.
($ millions)
Current market cap699
Starting market cap180
Year it went public1994
Type of REITOffices
Beacon Properties did a simultaneous direct placement and joint venture with the Dutch Metalworkers pension fund in 1995, said Alan Leventhal, president and chief executive officer. Beacon and the pension fund teamed up to buy a portfolio of Atlanta offices from Metropolitan Life Insurance Co. for $336 million.
Since its public offering, the company has diversified by region and property type, said Mr. Leventhal. The company now has 40% of its properties in Atlanta; 60% of its properties are suburban office space. Beacon previously had 90% of its assets in Boston and two-thirds of its properties were in downtown offices, Mr. Leventhal said.
Pension fund investors in the common stock: California State Teachers' Retirement System, College Retirement Equities Fund, Harvard Investment Management Co.
Crescent Real Estate
Equities Ltd.
Fort Worth, Texas
($ millions)
Current market cap778
Starting market cap585
Year it went public1994
Type of REITDiversified
The pension funds for American Airlines and Aluminum Co. of America contributed properties that were part of a private partnership with Crescent Chairman Richard Rainwater and received stock. William Quinn of AMR Investment Services, which oversees the American Airlines pension fund, sits on the board.
Gerald Haddock, president, said Crescent Real Estate Equities Ltd. is exploring other joint venture with pension funds.
Pension fund investors in the common stock: California State Teachers' Retirement System, College Retirement Equities Fund.
DeBartolo Realty Corp.
Youngstown, Ohio
($ millions)
Current market cap830
Starting market cap561
Year it went public1994
Type of REITShopping centers
DeBartolo Realty Corp. has not done any direct placements, said Donna Voster, a spokeswoman. It has done joint ventures with an insurance company and that might have included tax-exempt money, according to Ms. Voster.
Pension fund investors in the common stock: State Teachers Retirement System of Ohio, Florida State Board of Administration, Michigan Department of Treasury, California State Teachers' Retirement System, College Retirement Equities Fund, New York State Teachers' Retirement System and IBM Corp.
Developers Diversified
Realty Corp.
Moreland, Ohio
($ millions)
Current market cap631
Starting market cap240
Year it went public1993
Type of REITShopping centers
Developers Diversified Realty Corp. did an $80 million direct placement with mutual fund companies that might have pension funds as their clients, said Scott Wolstein, president.
The REIT has a joint venture agreement with the State Teachers Retirement System of Ohio to contribute new development properties to a partnership. The pension fund would contribute cash to the partnership, said Mr. Wolstein, who expects the deal to close in 30 to 60 days.
Last year, Developers Diversified joined with New York-based DRA Advisors to buy the community shopping center portfolio of Homart Development Co. The pension fund for E.I. du Pont de Nemours & Co. Inc. was an investor.
Pension fund investors in the common stock: California State Teachers' Retirement System, College Retirement Equities Fund, Florida State Board of Administration, General Motors Investment Management Corp., IBM Corp., State Teachers Retirement System of Ohio.
Duke Realty Investments
Indianapolis, Ind.
($ millions)
Current market cap848
Starting market cap495
Year it went public1986, 1993
Type of REITDiversified
A small portion of Duke Realty Investments was taken public in 1986, said Gene Zink, chief financial officer. In 1993, as part of a reorganization, the rest of the company was taken public.
Duke did a joint venture with an unidentified pension fund in December 1995, acquiring 21/4 million square feet of Indianapolis industrial space, said Mr. Zink. "We put in about $80 million worth of properties and $4 million of cash."
Pension fund investors in the common stock: University of Texas Systems, California State Teachers' Retirement System, Teacher Retirement System of Texas, Colorado Public Employees' Retirement Association and California Public Employees' Retirement System.
Equity Residential
Properties Trust
Chicago, Ill.
($ millions)
Current market cap1,187
Starting market cap844
Year it went public1993
Type of REITApartments
Cynthia McHugh, vice president-investor relations at Equity Residential Properties Trust, said several pension funds were part of a direct placement executed in 1994. Another private placement in January and February with Wall Street firms had some unidentified pension funds, according to Ms. McHugh.
The company has not done a joint venture with an institutional investor, but has explored the option, she said.
Pension fund investors in the common stock: California State Teachers' Retirement System, College Retirement Equities Fund, General Motors Investment Management Corp., State Teachers Retirement System of Ohio and Teacher Retirement System of Texas.
Sam Zell is chairman of this company.
Federal Realty
Bethesda, Md.
($ millions)
Current market cap715
Starting market capn/a
Year it went public1962
Type of REITShopping centers
Federal Realty has done two direct placements, one with an unidentified pension fund and one with an insurance company, said Kathy Klein, a company spokeswoman.
Federal has not done a joint venture with an institutional investor, she said.
Pension fund investors in the common stock: California State Teachers' Retirement System, Florida State Board of Administration, General Motors Investment Management Corp., IBM Corp., Kentucky Teachers' Retirement, State Teachers Retirement System of Ohio, U.S. Steel & Carnegie Pension Fund.
FelCor Suites Hotels
Irving, Texas
($ millions)
Current market cap662
Starting market cap150
Year it went public1994
Type of REITHotels
FelCor Suites Hotels has not done a direct equity placement or joint venture with a pension fund, said Hervey A. Felman, chairman.
Pension fund investors in the common stock: California State Teachers' Retirement System.
Franchise Finance Corp.
Scottsdale, Ariz.
($ millions)
Current market cap805
Starting market cap805
Year it went public1994
Type of REITChain restaurants
Franchise Finance Corp. has not done a direct placement of equity with a pension fund or tax-exempt investor, said John Barravecchia, chief financial officer.
The company hasn't co-invested with a pension fund since becoming a REIT, but it was the general partner in a partnership with the pension funds for the city and county of San Diego in 1991, said Mr. Barravecchia.
FFCA has no future plans to co-invest with tax-exempt institutions, he said.
Pension fund investors in the common stock: California State Teachers' Retirement System, Teachers Insurance and Annuity Association - College Retirement Equities Fund, IBM Corp.
General Growth Properties
Des Moines, Iowa
($ millions)
Current market cap641
Starting market cap490
Year it went public1983
Type of REITShopping centers
General Growth Properties Inc. hasn't done a direct placement but has completed two large joint ventures, said Bernard Freibaum, chief financial officer.
The REIT teamed up with Westfield Holdings, a large Australian institutional investor, and one of Goldman Sachs' Whitehall Funds in 1994 to buy Centermark from Prudential Insurance Co.
The company teamed up with the New York State & Local Retirement Systems, the trustees of the University of Pennsylvania and Equitable Insurance Co. of Iowa last year to buy the regional shopping centers of Homart Development Co., then a subsidiary of Sears, Roebuck & Co.
General Growth is "absolutely" interested in completing additional deals with institutional investors because it is a way to get involved in more properties and a way to diversify the shareholder base, said Mr. Freibaum.
Pension fund investors in the common stock: California State Teachers' Retirement System, College Retirement Equities Fund, General Motors Investment Management Corp., State Teachers Retirement System of Ohio.
