Corporates: Global Equity REIT & REOC Rating Methodology

Executive Summary

This document describes KBRA’s rating methodology for Commercial Real Estate Equity Real Estate Investment Trusts (REITs) and Real Estate Operating Companies (REOCs). The methodology is intended to be broad and will cover all Commercial Real Estate Equity REITs, as well as real estate operating and finance companies that may not qualify for REIT status, but whose asset compositions, capital and funding structures, and business strategies are similar to those of REITs.

This methodology provides an overview of KBRA’s general approach to analyzing REITs and REOCs and evaluating their quantitative and qualitative risks and explains how these various factors are used to form KBRA’s rating. In the rating reports for specific issuers, KBRA will elaborate on how it analyzed industry- and company-specific factors and, in certain circumstances, structural features. KBRA assigns ratings to REITs and REOCs using its short-term and long-term rating scales depending on the…