Looking for insight into which is better for a position as a REIT Analyst? I seem to see more CFA’s when I look at qualitifcations of people who work in analytical roles in the REIT industry.
That said, I seem to recall hearing the CAIA designation does cover REITs to some degree while the CFA barely touches real estate at all. My background is commercial real estate investment and valuation from the property level perspective. Any insight is greatly appreciated.
CFA is better than CAIA for almost all fields. Although CAIA has more specific information on certain topics, CFA is considered to be more difficult, covers a wide range of topics, and generally has more recognition.
What kind of REIT analyst are we talking here? Buyside, sell-side, actually working as an analyst for a REIT?
In any case, CFA is definitely more highly regarded. I cannot say specifically what the CAIA offers in terms of knowledge of REITs, but having covered REITs and now in REPE, the CFA will give you all of the tools you need. If you want to learn industry specific items, just read real estate books (https://www.perenews.com/publication_products_list/?publication=15), take an Argus class, listen to REIT conference calls, etc…
Aside from that, an MS in real estate would also serve you well.
Thanks for the replies. ^Blackbelt: It could be any of the above (buyside, sell-side or directly for a REIT). Was thinking the buy or sell side. Honestly, I am not sure what an analyst for a REIT actually does?
I actually have a M.S. in Real Estate but the program was heavily focused on R.E. development as opposed to finance though finance topics were definitely covered.
I have used Argus in a professional capacity but not for a REIT (used to do office, industrial and retail valuations). Currently, I focus on hotels which is exclusively excel oriented. I am sure the CFA would be great…probably the most powerful tool I lack.
S&P Global offers a REIT “Analyst Training” course. Just a 2-day course but looks interesting.
Neither. Hands on experience is the most important along with learning how to model . Real estate valuation is maybe less than 1 percent of the cfa curriculum.
BIWS is much cheaper and will get the job done with REIT modeling. https://breakingintowallstreet.com/biws/homepage/
If you already have that background then learning REIT modeling should not be that difficult. The CFA won’t help much with modeling skills, though it provides a good finance foundation. As such, if you’re looking to be a buy-side/sell-side analyst, then the CFA would be helpful in showing interest to employers.
An analyst at a REIT could be someone in acquisitions, asset management, FP&A, or general market research.
What is the interest in becoming a REIT analyst? Sounds like you are already working as an analyst/associate on the private side.
It could just be a grass is greener and/or I would like a change. The REIT world has always intrigued me.
In my current role, we seem to drill down to the property level and that is the primary focus. I could be mistaken but I get the impression that a buy or sell-side REIT analyst is looking at more big picture stuff though certainly the minute details matter as well.
Thanks for the BIWS link. Looks great. Appreciate your input. If you don’t mind me asking what led you to want to leave covering REITs to jumping into P.E.? Also, I get the impression you need top academic/ivy league credentials to work as a REIT analyst? I am definitely lacking Ivy credentials.
Again, I am pretty lucky as I do enjoy what I do but as I said…i find REITs really interesting and believe it could be a good long term fit.
That’s a pretty good summary of what a REIT analyst does. Your skill set and experience will actually put you well ahead of a lot of REIT analysts, many of which do not come from a real estate background.
I don’t think you need top academics, unless you’re going for the BBs or top HFs. I came from an OK Southeast school and have my CFA. I did work as a lead analyst for a number of years at a boutique covering healthcare before jumping to a BB to cover REITs.
I left the sell-side because the industyr is in secular decline and I don’t see light at the end of that tunnel. Other reasons pertain to family. I find investing much more interesting.
^CFABlackbelt: Again, thanks for the input. The BIWS excel training which includes a lot on REITs looks great.
CFA over CAIA for sure. But like someone said above, hands on experience is more valuable than either.