REIT Wrecks

The High Cost of Low Interest Rates

REIT Wrecks — Wed, 05 Oct 2011 06:38:47 +0000

This is not my headline, but I wish I had written it. It comes from REBusinessOnline which recently published a story about Ethan Penner and his perspective on the commercial real estate market. Penner’s comments are consistent with my view that the stampede into primary markets and core...

Versus Capital Brings Institutional Real Estate Funds to Retail Investors

REIT Wrecks — Thu, 07 Apr 2011 00:15:34 +0000

When it comes to commercial real estate investment strategies for retail financial advisors, there’s water, water everywhere, but not a drop to drink — particularly if you’re a fiduciary. From a strict asset allocation perspective, publicly-traded REITs and REIT ETFs are often...

Merrill Lynch Bullish on Apartment REITs

REIT Wrecks — Thu, 31 Mar 2011 23:05:03 +0000

“Why buy when you can rent?” This is the question being asked by Bank of America Merrill Lynch’s U.S. economics team, and in tandem with BAML’s REIT analysts, the firm published a series of research pieces on apartments and rental housing yesterday. The firm outlined a...

Commercial Real Estate: Where the New Normal is Old Hat

REIT Wrecks — Tue, 02 Nov 2010 10:02:26 +0000

Early in 2008, even as the world was coming apart, some commercial real estate investors were still insisting on doing the Same Old Thing. ‘We want the sunbelt’, I heard them say, ‘that’s where all the growth is’. Back in 2006, it was Ohio that had the highest...

Essex Property Trust Expects 35% Rent Growth in Certain West Coast Markets

REIT Wrecks — Fri, 18 Jun 2010 09:07:54 +0000

The REIT Week confab in Chicago is now over, and REITs of all stripes were reporting firming occupancies, better leasing activity, and stronger rents. The only weak spot appears to be suburban office properties, where landlords are still said to lack pricing power. Apartment REITs in particular...

Deutsche Bank/RREEF: The Recession is Over But Now Comes the Hard Part

REIT Wrecks — Mon, 14 Jun 2010 08:23:37 +0000

Last week, RREEF’s Chief Economist and Strategist Asieh Mansour cautiously told investors attending the Pacific Coast Builder’s Conference that the recession is finally over and that businesses have started hiring again. Unfortunately, she also said she’s never had to make a...

Michael Lewis & Ivy Zelman: Entitlements Are Bigger Risk Than Moral Hazard

REIT Wrecks — Thu, 10 Jun 2010 09:21:33 +0000

The buzz around Michael Lewis these days comes from his new book “The Big Short,” which is why he and Ivy Zelman were invited to speak at the Pacific Coast Builders Conference this week. Ivy Zelman, of course, is the now former the Credit Suisse housing analyst who famously asked Toll...

Stifel: Piedmont Office REIT Transition “Will Take Years”

REIT Wrecks — Fri, 28 May 2010 00:54:35 +0000

Stifel Nicolas picked up coverage of PDM today with a not so flattering “Hold” rating. Piedmont, of course, is the offspring of Wells REIT I, a non traded REIT that went public earlier this year. Stifel said Piedmont was fully valued at its current price ($18.70), but that was the least...

JP Morgan Attempts to Rebuild Market for CMBS “B” Pieces

REIT Wrecks — Wed, 19 May 2010 08:37:27 +0000

During the economically chilling month of April, I typically lose my enthusiasm for labor. Indeed, during this past tax season, REIT Wrecks emitted nary a vowel. Unfortunately, CMBS bankers have no such luxury, lest they have no work at all. The market for CMBS remains stalled, and the lack of...

Fortress Investment Group Fails To Knuckle Newcastle Preferreds

REIT Wrecks — Mon, 29 Mar 2010 09:22:51 +0000

Newcastle Investment Corp., (NCT) a Mortgage REIT managed by Fortress Investment Group, will continue to contribute management fees to FIG’s income statement for at least another year. But whether NCT makes it out of 2010 is an another question. Newcastle is suffering from a host of balance...