malach hamovess

Developers Diversified: TALF Capital Raise Helps

the preferred still have quite a bit upside; they're trading at 200 bps over other large-cap reit preferreds.
Each reduction in debt or increase in common equity strengthens the preferreds
the company could sell a half billion common shares, dilute the hell out of the common, and all that would happen is that the preferred would get even stronger

Developers Diversified's Results Contradict Retail Assumptions

DDR will be able to ride out the storm - but barely; there are other owners - not necessarily REITs but rather private equity groups and non-public ltd partnerships - that were more heavily leveraged and have no hope whatsoever of refinancing out of their CREs unless they can raise a lot more capital.

Commercial Real Estate: Distressed Borrowers not Distressed Properties

distressed borrowers in the public market offer opportunities too; the unsecured bonds or notes of some 2nd tier reits are selling at highly distressed levels even as there is real equity value in their more junior preferred and common shares.

often the gains on these notes will be accelerated as these reits use available cash to repurchase notes at a discount (but at prices higher than on can purchase same).

it's not exciting, but it sometimes works.

The Great REIT Unravelling Begins? Simon Property Group Defaults on Loan

The Source was a uniquely poorly laid out, poorly positioned, poorly tenanted piece of drek in an area overstuffed with shopping.

If Simon is walking away from the property by defaulting on a non-recourse loan, it's to their ultimate credit.

Sooner or later, the idiot who made the loan will be fired, and the holder of the loan will take a lot less than its face for the property.

Real estate investing includes dropping properties; real estate lending includes underwriting for good and bad times - a skill that has long since been forgotten.