capital markets panel discussion - naiop colorado markets panel discussion march 13, 2001 ... (80%...
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Capital Markets Panel DiscussionMarch 13, 2001
• Austin Lehr
• Fred Ruess• Walt Rakowich
Panelists:
Moderator:
BetaWest -DLJ Real Estate Capital PartnersKeyBankProLogis
Real Estate Advisory Services• Paul Luber
Four Quadrants of Real Estate Capital Markets
Equity DebtPRIVATE
PUBLIC
PrivateEquity
PrivateDebt
PublicEquity
PublicDebt
Institutional Real Estate Capital Markets
$63.8 Trillion
U.S. Equity22.6%
Dollar Bonds19.9%
Private Markets0.2%
Cash Equiv.4.8%
U.S. Real Estate4.8%
High YieldBonds1.0%
All Other Equities16.6%
Japan Bonds8.0%
Japan Equity5.3%
Emerging Market Equities1.2%
All Other Bonds13.7%
Emerging MarketDebt1.9%
Total U.S. Institutional Capital MarketDecember 31, 2000 (Preliminary)
Source:
Equity
Debt
Real Estate Capital Sources Overview
Source: Lend Lease Investment Research & Rosen Consulting: Emerging Trends in Real Estate 2001 As of Sept. 15, 2000
Institutional Capital(Real Estate held for investment)45% - $1.93 trillion
Non-institutional Capital(Corporate, Government and Residential Real Estate)55% - $2.37 trillion
Total U.S. Real Estate: $4.3 Trillion
Breakdown of $1.93 Trillionof Institutional Capital
Total Equity 20% - $378.7 billion
Total Debt 80% - $1,551.9 billion
Source: Lend Lease Investment Research & Rosen Consulting: Emerging Trends in Real Estate 2001 As of Sept. 15, 2000
Breakdown of $1.93 Trillionof Institutional Capital
Total Debt 80% - $1,551.9 billion
Total Equity 20% - $378.7 billion
Private Debt 66%
Private Equity 13%
Public Equity 7%Public Debt 14%
$1,930100%$1,930100%Total$285.014%Public
$1,266.966%Private$1,551.980%Debt$141.67%Public
$237.113%Private$378.720%Equity
Amount($ billions)
% of Total
Private/Public
Amount($ billions)
Percent of TotalQuadrant
2000 Institutional Equity Market Participants
REITs Public REOCS37.4% - $141.6(Public)
Savings Association0.3% - $1.2
Pension Funds37.5% - $141.9
Life Companies10.5% - $39.7
Foreign Investors13.9% - $52.5
Commercial Banks0.5% - $1.8
Note: Dollar Amounts in BillionsSource: Lend Lease Investment Research & Rosen Consulting: Emerging Trends in Real Estate 2001 As of Sept. 15, 2000
Total Equity $378.7 billion (20% of Institutional Capital)
Savings Association9%- $139.8
REITs1%-$10.3(Public)Pension Funds
2%-$36.4
Life Companies14%-$212.9
Other3%-$52.7
Foreign Investors14%-$215.1 Federally Funded
Mortgage Pools4%-$61.0(Public)
Non-Gov't CMBS Issuers14%-$213.7(Public)
Commercial Banks39%-$610.0
Note: Dollar Amounts in BillionsSource: Lend Lease Investment Research & Rosen Consulting: Emerging Trends in Real Estate 2001 As of Sept. 15, 2000
2000 Institutional Debt Market ParticipantTotal Debt $1551.9 (80% of Institutional Capital)