2houndz

CBL's Brief and Painful Stay on Goldman Sachs' Conviction Buy List

I have been saying for weeks that these games will continue until the REITs raise the money they need to meet upcoming requirements. Not a very popular statement on SA, but hey, some sucker has to pony up the money, and if that's where folks want to sink their hard-earned money, its still a free country - well, sort of, and if they don't do it, the government probably will.

Its sort of like the guy in front of me at the gas station who buys ten lottery tickets. I always feel compelled to thank him for willingly paying extra taxes. These people who are getting led around by the analyst REIT and bank opinions are doing us a huge favor. I have been talking to people inside CBL and other REITs. From those conversations, it seemed the positive news was mostly smoke and mirrors based on what needed to happen, not on any objective, fundamental data.

IMN Real Estate Forum: Opportunities to Invest in Distressed Commercial Real Estate, Part 2

On purchasing new properties, “NOI is more likely down than up [over the medium term], which makes buying very difficult.”

More likely that it makes selling difficult. NOI and cap rates have both been slammed. Marry that with high leverage, and most sellers would have to write a check to sell.

This is a solid report - thanks for posting.