News Type: Roundtable Weekly

Congress Passes Defense Legislation Addressing Foreign Investment Risk; Includes Language Addressing Real Estate

Posted on by Trey Jackson

The Senate on August 1 approved the National Defense Authorization Act for Fiscal Year 2019 (NDAA) – a compromise $717 billion defense policy bill aimed at building up the military and blunting Chinese foreign investment – which includes language that may affect some foreign purchases and leases of real estate near military and other strategic facilities.

The final version of the NDAA – including FIRRMA  –  would expand the list of covered transactions to include some foreign purchases and leases of real estate near military and other strategic facilities. It is anticipated that President Trump will sign the legislation in August.

  • The NDAA bill also includes the Foreign Investment Risk Review Modernization Act of 2018 (FIRMMA), which reforms the Committee on Foreign Investment in the United States (CFIUS) – a U.S. interagency committee that conducts national security reviews of foreign investment. 
  • FIRMMA expands the review authority of CFIUS to review national security implications of transactions that could result in control of a U.S. business by a foreign person and to block transactions or impose measures to mitigate any threats to U.S. security.
  • FIRRMA also expands the list of covered transactions to include some foreign purchases and leases of real estate near military and other strategic facilities.  Responding to concerns raised by The Roundtable and other industry groups, language is also included that exempts real estate located in ‘urbanized areas’ from the criteria of a covered transaction.  The Census defines an urbanized area as one comprising more than 50,000 people.  See  pages 820-826 of the final congressional conference report.

A congressional conference committee reconciled House and Senate versions of the NDAA last month. The final version of the NDAA – including FIRRMA – passed the House on July 26 and the Senate on Wednesday. It is anticipated that President Trump will sign the legislation in August.

National Flood Insurance Program Extended through Nov. 30

Posted on by Trey Jackson

A five-month extension of the National Flood Insurance Program (NFIP) was passed by Congress hours before its scheduled July 31 expiration and signed by President Trump later that day.  The NFIP extension gives the House and Senate additional time to work towards long-term reauthorization.

If the National Flood Insurance Program had lapsed, the Federal Emergency Management Agency would not have been able to issue new policies, and its borrowing authority would have been reduced to $1 billion from $30.4 billion. This would have had major effects on the real estate markets in coastal areas, where a flood insurance policy is mandatory for obtaining a new mortgage. 
  • If the program had lapsed, the Federal Emergency Management Agency (FEMA) would not have been able to issue new policies, and its borrowing authority would have been reduced to $1 billion from $30.4 billion. This would have had major effects on the real estate markets in coastal areas, where a flood insurance policy is mandatory for obtaining a new mortgage. (BGov, July 31) 
  • On July 25 the House voted 366-52 to pass the National Flood Insurance Program Extension Act of 2018 (S.1182), as amended, and on July 31 the Senate followed suit with a vote of 86-12. The measure reauthorizes FEMA to enter into new contracts for flood insurance and borrow from the Treasury up to specified amounts through Nov. 30, 2018 – the ­official end of the Atlantic hurricane season.   
  • The bill received pushback from Senate and House Republicans who wanted reforms to make the NFIP financially sustainable – after more than a decade of historic storms put the program deeply into debt. (CQ, July 25) 
  • A White House statement last week supported efforts to keep the flood insurance program from expiring, but noted Congress needs to enact long-term changes to ensure the program’s long-term viability. (The White House, July 25) 
  • In November 2017, the House passed long term legislation – the 21st Century Flood Reform Act (H.R. 2874) – that would reform and reauthorize NFIP for five years. The bill included: funding for flood mitigation assistance; lower flood insurance rates, support for  the private flood insurance market, modernization of flood zone mapping; and flood mitigation practices for homebuilders and land developers.  However, the measure was not been taken up in committee in the Senate. (Roundtable Weekly, Nov. 17, 2017) 

The Roundtable will continue to work with lawmakers and our coalition partners to assist with NFIP reforms and a long-term reauthorization, that would help protect the nation’s commercial and multifamily business-owners, their properties, and residents.

 

Jobs Originating through Launching Travel (JOLT) Act Introduced to Spur International Tourism and Job Creation Issues

Posted on by Trey Jackson

In a bipartisan effort to spur tourism to the U.S., create jobs, reform outdated visa laws and increase national security, Reps. Mike Quigley (D-IL) and Tom Rice (R-SC) yesterday introduced the Jobs Originating through Launching Travel (JOLT) Act of 2018.

“By improving the visa process, strengthening national security, and welcoming vetted travelers, the U.S. will be able to realize economic benefits at hotels, restaurants, retail store, and attractions around the country,” said VisitU.S. Coalition spokesman Amos Snead.  (VisitU.S. News Release, July 26)

  • Rep. Quigley said, “By updating outdated visa laws, we can drive tourism and job growth in our cities and assist the U.S. intelligence community with their mission to spot and stop terrorist threats. The JOLT Act accomplishes both of those objectives by stimulating economic activity and improving national security.”
  • Rep. Rice added, “The JOLT Act will enhance our economic competitiveness and strengthen national security by modernizing the Visa Waiver Program (VWP), which facilitates streamlined travel into the United States for pre-approved travelers from member countries.”
  • In 2016, 22 million people traveled to the U.S. from VWP countries, accounting for 59% of overseas arrivals to the U.S.  Travelers from these countries generated more than $90 billion for the U.S. economy.  (Rep. Quigley News Release, July 26)
  • The VisitU.S. Coalition applauded introduction of the Act. Coalition spokesman Amos Snead commented, “By improving the visa process, strengthening national security, and welcoming vetted travelers, the U.S. will be able to realize economic benefits at hotels, restaurants, retail store, and attractions around the country,” said VisitU.S. Coalition spokesman Amos Snead.  (VisitU.S. News Release, July 26)
  • Led by the U.S. Travel Association and the American Hotel and Lodging Association, the VisitU.S. coalition  also includes The Real Estate Roundtable, U.S. Chamber of Commerce and the American Resort Development Association. 
  • The coalition is also urging Congress to reauthorize the Brand USA program, which is funded through fees on foreign visitors who do not require a visa when entering the U.S.  Legislation is needed to authorize the program beyond 2020 – and ensure that visitor fees authorized for collection from 2021 to 2027 will not be diverted to the Treasury Department, as currently scheduled. (Roundtable Weekly, June 29)

A panel discussion at The Roundtable’s June 14 Annual Meeting focused on travel and tourism, economic growth and CRE.  Participants included Roger Dow, President and CEO, U.S. Travel Association; Katherine Lugar, President and CEO, American Hotel & Lodging Association; Senator Amy Klobuchar (D-MN) and Anthony E. Malkin  (Chairman and CEO, Empire State Realty Trust).  (Roundtable Weekly, June 15, 2018.)

House Proposal Suggests Gas Tax Increase, Public-Private Partnerships to Fund Infrastructure Improvements

Posted on by Trey Jackson

Rep. Bill Shuster (R-PA), the outgoing chairman of the House Transportation and Infrastructure Committee, released “discussion draft” language on July 23 aimed at improving and sustainably financing U.S. transportation and other infrastructure systems.  (Section-by-Section analysis of the proposal)

Roundtable President and CEO Jeffrey D. DeBoer appeared last summer on CNBC’s Squawk Box, emphasizing the importance of P3s as a platform to finance the design, building, operation and long-term maintenance of projects across all infrastructure asset classes(CNBC, June 7, 2017).

  • Shuster, who is retiring after the upcoming midterm elections, provided a “vision statement” explaining that the draft “is intended to further the national conversation about the current state of America’s infrastructure and highlight some of the major roadblocks to funding and improving our transportation network.”  He stated his proposal reflects “input from Members of Congress from both sides of the aisle” in an effort to build bipartisan support.
  • The wide-ranging draft proposes to phase-in increases to the “pay at the pump” gas tax and then eliminate it after 10 years; pilot a per-mile travelled “user fee”; shore-up the federal loan and guarantee program for mass transit; establish a public-private partnership (P3) program to construct and rehabilitate federal buildings; and establish a one-stop federal permitting shop to expedite project approvals.  (Eno Transportation Weekly, July 23) 
  • Any broad infrastructure policy conversation would likely address federal-state cost sharing arrangements for mass transit projects – such as the Gateway program to improve bridge and tunnel crossings between New York and New Jersey.  For example, a  June 29 letter from Trump Administration transit officials indicated a change in agency policy – that loans by the U.S. Transportation Department, repaid by state and local governments,  should factor into grant decisions.  The effect would be to reduce the amount of federal grants for mass transit and increase the state/local share. (B-Gov, July 3) 
  • Anticipating infrastructure as an issue for possible compromise after the upcoming elections, The Roundtable has offered a number of comments to the Administration and Congressional committees on real estate’s role in creating public-private partnerships to help repair roads, transit, broadband, power grid and other systems that are needed to make communities safe, productive and competitive.  (Roundtable Weekly, January 26) 

Roundtable President and CEO Jeffrey D. DeBoer appeared last summer on CNBC’s Squawk Box, emphasizing the importance of P3s as a platform to finance the design, building, operation and long-term maintenance of projects across all infrastructure asset classes.  Policies starting with streamlined permitting and a range of financing platforms should all be considered by lawmakers as layers in the “capital stack” for infrastructure,” DeBoer told Squawk Box. (CNBC, June 7, 2017)

Fed Chairman Testifies to Congress on Interest Rates; Banks Concerned About CRE Lending Risk

Posted on by Trey Jackson

In testimony before Congress this week, Federal Reserve Chairman Jerome Powell testified about interest rates and monetary policy.  “With a strong job market, inflation close to our objective, and the risks to the outlook roughly balanced, the FOMC believes that – for now – the best way forward is to keep gradually raising the federal funds rate,” Powell told the Senate Banking Committee on Tuesday. 

In testimony before Congress this week, Federal Reserve Chairman Jerome Powell testified about interest rates and monetary policy.
  • After the Fed raised short-term U.S. rates twice in the first half of 2018, it is expected to issue two more increases this year, starting in September.  (MarketWatch, July 17 and Wall Street Journal, July 19)
  • In Chairman Powell’s Senate testimony, he said the Fed expects, with appropriate monetary policy, that the job market will remain strong and inflation will stay near two percent over the next several years.  He added that the Fed’s economic forecast faces the uncertain impact of trade policies and tax legislation. “It is difficult to predict the ultimate outcome of current discussions over trade policy as well as the size and timing of the economic effects of the recent changes in fiscal policy,” Powell testified.  
  • The Fed yesterday released its “Beige Book” of current economic conditions, which notes the effects of newly-imposed tariffs: “Manufacturers in all Districts expressed concern about tariffs and in many Districts reported higher prices and supply disruptions that they attributed to the new trade policies. Tariffs contributed to the increases for metals and lumber.” According to the report’s national summary commercial real estate markets show stable or improving growth.  (Reuters, July 18 and GlobeSt, July 19)   
  • During the House Financial Services Committee on Wednesday, Powell also commented on CRE asset pricing.  “Broadly speaking, commercial real estate prices are in the upper range, I think, generally elevated. I wouldn’t use the bubble word here, but I would say that many financial asset prices are elevated above their normal ranges.”
  • According to a July 16 Financial Times article, U.S. banks are increasingly concerned about the effects of rising interest rates on CRE lending, with executives saying they are worried about an overheated market.  “US bankers have warned about mounting risks in commercial real estate, with figures showing they are putting the brakes on loans to buyers of office buildings, hotels and shopping malls,” the Times reports. 

The effects of monetary policy and tax legislation on commercial real estate will be a focus of The Roundtable’s September 26 Fall Meeting in Washington, DC.

GOP House Leadership Plans Votes on “Tax Reform 2.0” in September; Technical Corrections Bill After Mid-Term Elections

Posted on by Trey Jackson

House Republican leaders aim to vote on “Tax Reform 2.0” legislation in September, followed by a tax technical corrections bill after the November mid-term elections.

House Speaker Paul Ryan (R-WI), right, and House Ways and Means Committee Chairman Kevin Brady (R-TX), left, pledged action on Tax Reform 2.0.  Ryan said taxwriters are compiling a list of “glitches and issues” in the new tax law that could be in a technical corrections bill.  
  • House Ways and Means Committee Chairman Kevin Brady (R-TX) on Tuesday said a second round of tax cuts would include permanently extending individual tax cuts passed last year in the Tax Cuts and Jobs Act.  Twenty-three provisions in the law relating to individual income taxes are currently scheduled to expire at the end of 2025.  (Tax Foundation, January 18)
  • During the July 17 meeting with President Trump and other members of his committee, Brady said, “We anticipate the House voting on this in September and the Senate setting a timetable as well.” After the meeting, Brady added, “We talked about timing and the importance of this. … We’re very well aligned with the White House on 2.0.”  In a televised interview on Wednesday morning, Chairman Brady expanded on his vision for the next major tax bill, which he said would create 1.5 million additional jobs.  (Fox Business, July 18)
  • Such a bill likely would face significant challenges in the Senate, where it would need Democratic support to pass.  Senate Finance Committee Chairman Orrin Hatch (R-UT) supports making the tax cuts permanent and “will continue to work with his colleagues to find a viable path and timing to achieve this goal,” according to a spokeswoman. (Wall Street Journal, July 19)
  • House Speaker Paul Ryan (R-WI) last week also pledged action on Tax Reform 2.0 and added that a technical corrections tax bill would be introduced after the mid-term elections. Ryan said taxwriters are compiling a list of “glitches and issues” in the new tax law that could be corrected in the bill.  Chairman Brady also confirmed the timeline last week, stating, “We’re continuing to develop the technical corrections. It’s always been assumed that we would want to see how Treasury lays out its rules, from everything from pass-throughs to international.”  (CQ, July 12 and Bloomberg Tax, July 13)

Among the technical corrections needed is a drafting mistake that added nearly a quarter-century to the depreciation life for qualified improvement property that has negatively affected commercial real estate development.  Roundtable SVP and Counsel Ryan McCormick explained at a recent NYU tax conference that while Congress intended for qualified improvement property to receive bonus depreciation — setting the recovery period at 15 years — a drafting error put the recovery period at 39 years.  “In addition to conflicting with the clear legislative intent, this result is … antithetical to the basic direction of the underlying bill,” McCormick said.  (Tax Notes, July 2 and Wall Street Journal, July 10 – “Legislative Mistake Causes Some Companies to Postpone Renovations“)

New Federal Opportunity Zones Profiled in Q&A with Roundtable Staff; House Speaker Ryan Touts Benefits of Investment Program

Posted on by Trey Jackson

A new federal “Opportunity Zones” investment program – and its potential to boost job creation, entrepreneurship, and economic development in low-income communities – is the focus of a July 16 GlobeSt.com interview with Real Estate Roundtable President & CEO Jeffrey DeBoer and Roundtable SVP and Counsel Ryan McCormick.  With implementation guidance about the program expected soon from the U.S. Department of the Treasury, the article highlights the major tax considerations and regulatory questions for real estate, many of which are discussed in greater detail in The Roundtable’s June 28 Opportunity Zone comment letter.

     Roundtable President & CEO Jeffrey DeBoer, right, and Roundtable SVP and Counsel Ryan McCormick, left, discussed the new federal “Opportunity Zones” investment program in a  July 16 GlobeSt.com interview.

  • Last month, the Treasury Department formally designated more than 8,700 low-income census tracts in the United States, Puerto Rico, and territories as qualified Opportunity Zones. (IRS Notice 2018-48 and Roundtable Weekly, June 22)
  • DeBoer explained in the GlobeSt interview, “The point of the program is to encourage capital formation and patient, long-term investment in these areas by reducing or eliminating capital gains taxes for taxpayers investing in newly established Opportunity Funds.”
  • McCormick told GlobeSt that property in an Opportunity Zone – real estate or otherwise – must be acquired by the fund after Dec. 31, 2017.  He added, “The law delegated many of the key implementation issues to the Treasury Department to resolve. These include: (1) how an Opportunity Fund is certified (2) how quickly must an Opportunity Fund deploy new capital, and (3) when has an existing real estate asset qualified as an eligible investment?”
  • A July 13 Wall Street Journal article on Opportunity Zones reported, “Unlike earlier federal efforts to spur economic development in poorer communities, the program takes a free-market approach and isn’t backed with federal spending.”
  • House Speaker Paul Ryan (R-WI) on July 12 spoke at length regarding the program before the Economic Club of Washington.  “With these opportunity zones, we are essentially offering private investors a set of incentives. The longer you maintain your investment in these areas, the more tax benefits you receive.  Right now, we have $6 trillion of unrealized capital that can be deployed to help alleviate poverty in distressed communities and improve people’s lives,” Ryan said.
  • DeBoer also noted in the GlobeSt interview, “Investors and real estate fund managers are actively in the process of evaluating options, setting up funds, and conducting due diligence.  As time passes and the regulatory regimes takes shape, the pool of Opportunity Fund investors may grow.  We anticipate Treasury will soon issue guidance, hopefully within the next 30 days.”

The Roundtable Tax Policy Advisory Committee (TPAC) recently convened a panel on Opportunity Zones that included the tax counsel for Senator Tim Scott (R-SC), the original author and sponsor of Opportunity Zone legislation.  TPAC’s Opportunity Zone Working Group will continue to provide insight into how the industry can help the program fulfill its ambitious objective of stimulating economic development and job creation. (Roundtable Comment Letter, June 28)

Treasury Department Reports on Effectiveness of Terrorism Risk Insurance Program

Posted on by Trey Jackson

The federal government’s Terrorism Risk Insurance Program has been effective in making terrorism risk insurance available and affordable throughout the United States, according to a recent report by the U.S. Department of the Treasury’s Federal Insurance Office. 

The  Treasury based its June “Report on the Overall Effectiveness of the Terrorism Risk Insurance Program” on marketplace data collected for the past two years, along with public comments such as those submitted by the broad-based Coalition to Insure Against Terrorism (CIAT), which includes The Real Estate Roundtable.

  • The Terrorism Risk Insurance Program – authorized by the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) of 2015 – provides a federal backstop for certain U.S. property and casualty insurance losses resulting from a certified act of terrorism.
  • TRIPRA directs Treasury to provide reports on the Program’s effectiveness and estimate the total amount of premiums earned on terrorism risk insurance since January 1, 2003.  Treasury published its first Program effectiveness report two years ago.  (Roundtable Weekly, July 8, 2016).
  • In last month’s report, Treasury’s estimate of total earned premiums for terrorism risk insurance from 2003 to 2017 is approximately $37.6 billion (excepting captive insurers).  This amount is between 1 and 2 percent of the total premiums earned in the Program-eligible lines of insurance during that period.  Treasury estimates that an additional $7.4 billion has been earned by captive insurers. 
  • The total of terrorism risk premiums earned is comparable to the loss sustained by the insurance industry in connection with the attacks on September 11, 2001. 
  • While the purchase of terrorism risk insurance is not mandated by the Program, a significant proportion of commercial policyholders nationwide have elected to obtain such insurance, and take-up may be even higher in metropolitan areas at greater risk of terrorism. 

Without Congressional action, the Terrorism Risk Insurance Program, authorized by TRIPRA, will expire on Dec. 31, 2020.  The Roundtable is working with industry partners to develop a proposal that would make terrorism insurance available for the long-term.

Regulators Emphasize Need for Transition Away From LIBOR to New Standard by End of 2021; Roundtable to Address Impact on Commercial Real Estate Finance

Posted on by Trey Jackson

International regulators this week urged banks to speed up their transition plans away from the London Inter-bank Offered Rate (LIBOR) to a new standard for setting the price of trillions of dollars of loans and derivatives worldwide. LIBOR is an important reference rate for commercial real estate and the broader economy, underlying approximately $373 trillion worth of cash and derivative contracts globally. 

The Fed’s Alternative Reference Rates Committee (ARRC) will meet on July 19 to address risks in contract language and actions that could minimize disruptions associated with a possible end to LIBOR.

  • With LIBOR set to expire at the end of 2021, the status of reform efforts and their impact on commercial real estate finance is profiled by Joseph Forte (Sullivan & Worcester) – a member of The Roundtable’s Real Estate Capital Policy Advisory Committee (RECPAC) – in his recent article, “Après LIBOR: Black Swan or Y2K.” 
  • LIBOR’s credibility was badly undermined a decade ago by a rate-manipulation scandal. These illegal actions damaged the public’s trust in LIBOR, financial markets and institutions. 
  • The United Kingdom’s Financial Conduct Authority (FCA), which regulates LIBOR, announced last year that it will phase out the global borrowing index by 2021.  In December 2018, FCA Chief Executive Andrew Bailey said, “There is some good news to report on the important steps taken towards transition. But the pace of that transition is not yet fast enough. There is much further to go.”  (FCA, “Interest rate benchmark reform: transition to a world without LIBOR“) 

    With LIBOR set to expire at the end of 2021, the status of reform efforts and their impact on commercial real estate finance is profiled in Joseph Forte’s recent article, ” Après LIBOR: Black Swan or Y2K .”  . 
  • The Federal Reserve Bank of New York in April began publishing an alternative U.S. benchmark to work alongside LIBOR – the Secured Overnight Financing Rate (SOFR), which is seen as the next step to transition trillions of dollars in securities away from LIBOR.  SOFR is seen as more reliable, as it is based on interest rates in the U.S. market for repurchase agreements instead of LIBOR’s estimated quotes by bankers in the relatively thin interbank loan market. 
  • Yesterday, The Wall Street Journal reported that international regulators are urging banks to stop using LIBOR for new contracts and plan to accommodate legacy contracts that are set to expire after LIBOR sunsets at the end of 2021.  “Legacy contracts represent arguably the greatest challenge for regulators and industry groups,” according to the July 13 article.   
  • Former President of the Federal Reserve Bank of New York William Dudley spoke about LIBOR in May. “Time is of the essence, and we must manage it well,” he told a Bank of England forum.  “Because of the great uncertainty over LIBOR’s future and the risks to financial stability that would likely accompany a disorderly transition to alternative reference rates, we need aggressive action to move to a more durable and resilient benchmark regime,” Dudley added.  (Reuters, May 24, 2018) 
  • The Fed’s Alternative Reference Rates Committee (ARRC) will meet on July 19 to address risks in contract language and actions that could minimize disruptions associated with a possible end to LIBOR.  See “Alternative Reference Rates Committee Releases Principles for Fallback Contract Language Guiding Principles Mark a Key Milestone in Meeting the ARRC’s Mandate” and the ARRC website for additional information. 

The Roundtable’s RECPAC has formed a LIBOR Working Group to address this challenge and work toward the development and implementation of an effective, new replacement benchmark that does not impair liquidity, needlessly increase borrowing costs or cause market disruptions.

The Real Estate Roundtable Elects New Leadership

Posted on by Trey Jackson

Ventas’ Debra A. Cafaro is New Chair of FY2019 Roundtable Board of Directors

(WASHINGTON, D.C.) — The Real Estate Roundtable has elected Debra A. Cafaro (Chairman and Chief Executive Officer, Ventas, Inc.) as its new Chair for a three-year term starting July 1, 2018.  She succeeds William C. Rudin (Co-Chairman and CEO, Rudin Management Company, Inc.).  The Roundtable’s membership also approved a 23-member Board of Directors for its 2019 fiscal year (July 1, 2018 – June 30, 2019).

The Real Estate Roundtable is comprised of industry leaders from the nation’s top publicly-held and privately-owned real estate ownership, development, lending and management firms.  Roundtable members focus on office, multifamily, retail, industrial, hospitality and other product types.  The FY2019 Board is elected from the membership and includes four elected leaders of national real estate trade organizations from The Roundtable’s 17 partner associations.

Ms. Cafaro leads Ventas, Inc., an S&P 500 company and real estate investment trust with a portfolio of more than 1,200 seniors housing, healthcare and research properties in the United States, Canada and the United Kingdom. 

“For two decades, The Real Estate Roundtable has taken a non-partisan approach aimed at providing practical policy solutions to lawmakers in DC,” Cafaro said.  “I intend to carry this approach forward, by continuing to shape and articulate a unified real estate industry perspective for policymakers, and as the first woman elected to this role, to showcase the diversity of our highly respected membership on national public policies.”

Cafaro added, “Above all, we must uphold our independent and respected position on Capitol Hill, emphasizing the industry’s economic role as a job creator; cornerstone for retirement savings; and a significant source of state and local budget revenue that in turn funds essential services, including police and fire protection.”

Ms. Cafaro joined The Real Estate Roundtable’s Board of Directors in 2011, served as Board Secretary in 2015 and was elected Chair-Elect and Secretary in 2017.

The Roundtable’s Immediate Past Chair William Rudin noted, ““I was honored to serve as the Roundtable Chair the past three years and pleased that Debra will succeed me.  She has an incredibly successful background, a sterling reputation, and the positive skills and qualities needed to successfully prioritize and advance the real estate industry’s policy agenda in Washington.”

Roundtable President and CEO Jeffrey D. DeBoer said, “The Roundtable now begins our 20th year of bringing together the leaders in our industry with the major industry trade associations to work positively with national lawmakers on policy issues related to our industry and the overall economy.  Our past success has been directly related to our high quality membership, our fact-based, nonpartisan problem-solving approach to policy issues, and the collective work with the overall industry .  We look forward to Deb Cafaro as our new Chair, not only to carry on our traditional approach to Washington, but also to lead The Roundtable to a new, enhanced level of effectiveness.”

Cafaro has received multiple professional recognitions, including one of the World’s 100 Most Powerful Women (Forbes Magazine), and one of the 50 Best-Performing CEOs in the World for four consecutive years (Harvard Business Review).  She is also a member of the Business Council; serves on the board of PNC Financial Services Group Inc; and is an owner and member of the Management Committee of the National Hockey League’s Pittsburgh Penguins.

Also joining The Roundtable’s Board of Directors as of July 1 are: Thomas J. Baltimore, Jr., Chairman, President and CEO of Park Hotels & Resorts and Chair, Nareit®; Tray E. Bates, CCIM SIOR CIPS, Principal, Bates Commercial LLC and Former Commercial Committee Chair, National Association of Realtors®; Steven Hason, Managing Director and Head, Americas Real Estate & Infrastructure, APG Asset Management US Inc. and Chairman, Pension Real Estate Association; Kathleen McCarthy, Global Co-Head of Blackstone Real Estate, Blackstone; and Tara L. Piurko, Partner, Miller Thomson LLP and President, CREW Network.  See the complete list of the FY2019 Roundtable’s Board of Directors here.

Stepping down from The Roundtable Board as of July 1 are: Kenneth F. Bernstein, President & Chief Executive Officer, Acadia Realty Trust and Immediate Past Chairman, International Council of Shopping Centers; Kevin Faxon, Managing Director – Head of Real Estate, Americas, J.P. Morgan Asset Management and Immediate Past Chairman, Pension Real Estate Association; Timothy J. Naughton, Chairman, CEO and President, AvalonBay Communities, Inc and Immediate Past Chair, Nareit®; and Robert S. Taubman, Chairman, President & CEO, Taubman Centers, Inc., and Chair Emeritus, The Real Estate Roundtable.

The Roundtable’s business and trade association leaders seek to ensure a cohesive industry voice is heard by government officials and the public about real estate and its important role in the global economy.  Collectively, Roundtable members’ portfolios contain over 12 billion square feet of office, retail and industrial properties valued at more than $1 trillion; over 1.5 million apartment units; and in excess of 2.5 million hotel rooms. Participating trade associations represent more than 1.5 million people involved in virtually every aspect of the real estate business.

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