Conflicts of Interest in the Structure of REITs

When the surge of equity REIT initial public offerings (IPOs) came to market in 1993 and 1994, the quality as well as an obvious increase in the quantity of newly securitized real estate (approximately $15.1 billion in the first two years of this bull market), defined a new REIT marketplace. By the end of 1995, the implied market capitalization of equity REITs had reached $59 billion, fourfold its size in 1992, and these real estate companies controlled approximately $83 billion in real estate.