...This report addresses capital ad equacy for both publicly and privately rated equity REITs, focusing on real estate and other assets on REITs balance sheets. These criteria center on the leverageability of different property ty pes, based on historical volatility data. In addition, this methodology addresses the fact that equity REITs have increasingly complicated balance sheets that feature pr ogressively larger components of joint ventures and intricate develo pment arrangements. While cert ain financial institutions such as banks and insurance companies receiv e regulatory oversight governing how they may be capitalized, REITs have no such regulatory limitations. Nevertheless, capital adequacy is a significant component of Fitch s ratings for REITs. During the past ## years, the equity REIT ma rket has transitioned from an emerging, new phenomenon to a known, studied sector. Data and performance observation have been accumulated over time, and th e investment community,...
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