From the monthly archives:

June 2008

IRS Revenue Procedure 2008-68

June 30, 2008

Part IIIAdministrative, Procedural, and Miscellaneous26 CFR 601.601: Rules and regulations. (Also: Part I, §§ 301, 305) Revenue Procedure 2008-68 SECTION 1. PURPOSE This revenue procedure provides temporary guidance regarding certain stock distributions by real estate investment trusts (REITs). SECTION 2. BACKGROUND .01 Section 305(a) of the Internal Revenue Code (“Code”) provides that, except as otherwise […]

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The Repricing of Risk: Petra Peels the Onion

June 29, 2008

In Ever Increasing Numbers, Vulture Investors Are Circling Commercial Mortgages, Citing a Price/Value Disconnect, But Expect Book Values to Remain Under Pressure as More Distressed Trades Begin to Hit the Tape. Petra Real Estate Opportunity Trust, a New York-based REIT intending to invest in commercial mortgage loans, recently filed a registration statement for an initial […]

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List of REITs Paying Dividends In Stock

June 26, 2008

As 2009 winds on, the list of REIT dividends being paid in stock grows ever longer (Update: CBL says it will resume paying dividends in cash in Q2, SPG says it will resume cash dividends sometime in 2010 and NRF has already done so). Here is a complete, current list, with prices and “yields” updated […]

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Equity Investors Have Plenty of Capital

June 25, 2008

Although sales activity is stifled, investors’ interest in commercial property acquisitions is acute According to the latest PricewaterhouseCoopers Korpacz Real Estate Investor Survey, equity funds in the market this year are slated to raise more than $318 billion, which would be up 35% from the amount targeted by the funds in the market all of […]

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CW Capital Takes B Piece on $1.4BB CMBS deal

June 24, 2008

Latest CMBS Deal Launched and Priced CRE Direct (www.credirect.com) reported that CW Capital, the mortgage lending subsidiary of Caisse de dépôt et placement du Québec, took the entire subordinated “B” note on Bank of America’s $1.3billion CMBS deal, which priced on the 19th, just one day after guidance was issued. It is only the eighth […]

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Concerns Grow on CMBS Price Manipulation

June 23, 2008

AS EVIDENCE GROWS THAT THE SELLOFF WAS OVERDONE, OPPORTUNITIES TO INVEST WILL FADE. BE GREEDY NOW WHILE OTHERS ARE FEARFUL. In early April, I reported that the Commercial Mortgage Backed Securities Association had written to the Markit Group Ltd., the London-based administrator of the CMBX Index, a synthetic credit default swap derivatives index introduced in […]

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Multifamily Mortgage Market Stable; Fannie, GSE’s Share Growing

June 20, 2008

Delinquencies Remain Low in the Multifamily Sector; Level of Outstanding Debt Grew in the First Quarter At least one corner of the mortgage market remains healthy: multifamily mortgages, which is good news for those mortgage REITs diversified among the four commerical real estate “food” groups. It is also a huge market, and one that is […]

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The Trouble With TruPs

June 18, 2008

After looking at some potential apartment acquisitions in Ohio last week (shameless plug: Chris Germain, San Francisco), American Airlines flew me back home through the lively metropolis of St. Louis. During the layover, I had a chance to read the St. Louis Business Journal, which featured on its front page a story about bad loans […]

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Mark to Market Losses Starting to Reverse?

June 17, 2008

In the first quarter of 2007, subprime mortgages provided the first sign of trouble in the credit markets as falling housing prices began to hit borrowers hard. But in the first quarter of 2008, home-equity lines of credit became the new canary in the coal mine. Lenders such as National City have frozen existing home […]

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CMBS Prices Reflect Irrational Fears

June 9, 2008

“MARKET FEARS AND THE LIQUIDITY CRUNCH HAVE DRAMATICALLY DISTORTED THE VALUE OF CMBS, CREATING ONE OF THE BEST ENVIRONMENTS IN HISTORY FOR INVESTING IN CMBS.” The Commercial Mortgage Securities Association (CMSA) yesterday presented new data on the pricing of commercial mortgage-backed securities (CMBS) compared to their fair value and returns relative to risk profile. The […]

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