REIT Use of Non-GAAP Measures to Remain Under SEC Scrutiny, Lawyer Says
04/23/2019 | by Nareit Staff

Karen Garnett, partner at international law firm Proskauer, participated in a video interview at Nareit’s REITwise: 2019 Law, Accounting & Finance Conference in San Antonio.

Garnett discussed how the Securities and Exchange Commission (SEC) is addressing some of the emerging issues surrounding corporate governance.

She also noted that the use of non-Generally Accepted Accounting Principles (GAAP) measures by REITs continues to attract SEC attention. “Because REITs use non-GAAP [measures] so frequently, it’s really an area to stay on top of…the SEC is still very focused in this area and will continue to closely watch what companies are doing,” she said.

Meanwhile, Garnett pointed out that climate change remains the most common area of disclosure for companies within the ESG framework.