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Wall Street Breakfast

REITs, interest rates and why retail isn't dead

Wall Street Breakfast

Seeking Alpha

Business News, News, Business, Investing

4.11K Ratings

🗓️ 21 December 2024

⏱️ 5 minutes

🧾️ Download transcript

Summary

Christine Mastandrea, COO of Whitestone REIT, on managing interest rate strategies and why retail isn't dead.

Show Notes
Fed's Hawkish Cut Hits Stocks Hard
REITs: Very Bond-Like

Episode transcripts: seekingalpha.com/wsb

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Transcript

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0:00.0

Christine Mastandrea C.O of Whitestone REITs. We just had a Fed meeting. There's a lot of talk of

0:17.8

of interest rates. And a lot that's aligned with that conversation tends to be on the reed side of things.

0:25.6

In addition to that, in terms of looking at a broader scope of things or taking a broader perspective on things, as I mentioned, the Federal Reserve meeting, it was expected.

0:36.2

They would cut rates at this meeting.

0:37.6

They did. They're saying that there's probably going to be fewer cuts in the coming year.

0:42.1

How much do you pay attention to the interest rate conversation? There's the notion that when

0:47.0

rates go up, rates go down, how much does that affect your thinking and strategizing and what

0:53.0

you're paying attention to? Well, you know, as being a

0:56.2

co-founder in the business, you've got to always be able to flex to your environment. And part of

1:01.0

it flexing to your environment is just always being prepared to be able to adjust to what may come

1:06.1

your way. So I always looked at in the being in the space, though you always have to think about

1:11.5

laddering out your maturities, you know, really maintaining your banking relationships to

1:17.2

prepare for changes that occur. And then also the flexibility that we need to have in the real

1:21.9

estate. And so real estate, the space itself is is very challenging to be flexible with, right? You're building a building,

1:28.5

you're looking to build it for the long term. And so one of the things that we've always done

1:32.7

is to make sure, again, focusing on the right locations, and then building real estate

1:38.0

that is flexible for that location. So that's why I refer to the small space size. Also,

1:50.2

you know, when I think about taking risk, I like thinking about dispersing.

1:55.1

So rather than concentrating my risk in certain types of product, that's why we were very careful to avoid the soft goods in the hard goods space with the Amazon effect, saw the

1:59.9

opportunity to say, let's look for

2:02.4

dispersion of risk let's look at smaller flexible spaces spaces that mean a number of different

2:09.2

variety of needs and in addition to that the service sector was being overlooked back when we started

...

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