From the category archives:

REITs

Does Denial of Loan Modifications Constitute A Violation of the Fifth Amendment?

January 7, 2010
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These days, the only thing more cramped than a Hong Kong cemetery is office space for special servicers. Nevertheless, if you’re a borrower in trouble, it’s unlikely that you’ll be outnumbered. CMBS default rates ballooned by almost 500% in 2009, up from 1.21% in the beginning of 2009 to over 6% by the end of […]

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San Francisco Apartment Loan Portfolio Sells For 64% of Face Value

January 3, 2010
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Talk about a REIT Wreck. Landing head first in a rock pile would be a much better metaphor for the 2009 commercial real estate market than an explanation for my year-end absence. However, that’s exactly what happened in a biking accident early in November, and my right arm spent the waning days of 2009 bound […]

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Real Estate as an Inflation Hedge? Don’t Bet On It

July 7, 2009

One major reason for investing in commercial real estate and REITs is that real estate is thought of as an effective hedge against inflation, yet commercial properties were an abyssmal inflation hedge in the early 1990s. So why are they still considered to be an inflation hedge if that isn’t always the case? As usual, […]

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The Mortgage REIT Riddle

September 24, 2008

This is a longish post, so get a refill before settling in. There was a great story on the downfall of AIG in Moneymorning.com on Monday, a great story because it is incredibly analagous to the price/value disconnect that has been hammering equity values in the Mortgage REIT world. As I’ve posted again and again, […]

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Is iStar Sprouting A Portfolio Full of Contingent Liabilities?

September 4, 2008

iStar, the embattled Mortgage REIT, has been taking it on the chin recently. Last quarter, they set aside $217 million for bad loans, and a $45 million charge for mark to market losses. The REIT’s high profile developer defaults in Miami, the epicenter of the bubble, are already well-known. However, its new get tough policy […]

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REIT Yields Beat Bonds After "Overdone" Drop

September 3, 2008

Laura Cochrane Sept. 3 (Bloomberg) Property securities are worth buying for their dividends alone, which offer superior yields to government bonds after the “overdone” drop in share prices prompted by the U.S. housing slump, ING Real Estate said. Real estate investment trusts are on average being priced at a 17 percent discount to their net […]

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REIT Taxable Income Definition Unlocking Opportunities?

September 2, 2008

In order to maintain qualification as a Real Estate Investment Trust, or REIT, (please see “REIT Definition” for a comprehensive definition of REITs), any entity organized as a REIT is required (among other things) to annually distribute dividends to its stockholders in an amount at least equal to 90% of taxable income (not GAAP income). […]

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REIT Definition

August 28, 2008

A REIT is an entity organized as a Real Estate Investment Trust (REIT) for federal income tax purposes. In order to maintain REIT status on an on-going basis, a REIT must also operate in conformity with the requirements for REIT qualification under the Internal Revenue Code. The advantage of operating as a REIT is that […]

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