REITBull

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

Just for the record (Source: SeekingAlpha SPG transcript):

"We have a 25% carried interest in that property behind significant preference for what I will call the true economic owner; there are two other partners in that deal. We have no invested capital in that project. We were working toward a refinance kind of as the property manager of that asset.....we are actually trying to work with the true economic owner and the lender to figure out how to come up with an acceptable alternative to extend the maturity date and give us the time to figure out how to fill the space....Both the true economic owner and the lender have expressed an interest in us maintaining our role in that, even though we don’t get any cash flow and the management fee is de minimus in terms of what we’re doing. So, we are actually trying to be an honest happy broker to figure out how to make and give both of those lender and the borrower the ability to maintain the status quo for a better environment down the road. So, that is the source."
-David Simon

Mack-Cali Late to the (Follow-On) Party

Not all CRE are REITs, but I get the point.


On May 01 08:47 AM yellowhoard wrote:

> So, when I drive by vacant strip malls and office buildings, I need
> to stop believing my lying eyes.

Open Letter to SEC: Wall Street's REIT Bait-and-Switch

Yeah, like AAA subprime ratings?


On Apr 22 04:47 PM Lightway wrote:

> I've pretty much put analyst buy/sell recommendations up there with
> credit agency debt ratings. Neither is reliable.

Open Letter to SEC: Wall Street's REIT Bait-and-Switch

Tyler lays out a very good case. I appreciate the work he has done on this and his work to highlight conflicts of interest.

However, I find it hard to be sympathetic to investors that rely soley on analyst recommendations to purchase or sell a stock. If you are not going to do your own homework, be prepared for additional risk.

Disclosure: I'm long REITs

Duke Realty: Another REIT on the Mass Dilution Bandwagon

I should add that anyone who did not see the dilution coming in these stocks has not done their homework. So I don't agree with lashing out at the companys that are issuing more common stock.

Duke Realty: Another REIT on the Mass Dilution Bandwagon

Yeah I have to agree with jasonjim. I ran my own dilution scenarios using 10K's about a month ago for a number of REITs including DRE. My conclusion was that the market had already priced in an excessive amount of dilution to these stocks. With each successful offering, the need for more stock issuance begins to decrease, driving the share price to more normal levels.

Disclosure: Long URE

General Growth Properties Files for Bankruptcy

Okay, I feel like a total hypocrite, but I just put a very small position on SRS. It was just too attractive at 26 and change. I still have a much larger position on the long side and will continue to buy URE....Just a short term trade but I thought I would come clean.

General Growth Properties Files for Bankruptcy

Or are the dilutions already priced in? Everyone and their mother saw the offerings coming.

General Growth Properties Files for Bankruptcy

Take a look at the holdings in IYR for your answer on SRS. GGP is nowhere to be found and is the exception not the rule. SPG, KIM, AMB have had success raising capital in the public markets. SRS was bled dry a long time ago. When your average Joe is talking about getting in on the action (i.e. shorting CRE) the bubble is about to pop or already has.

Disclosure: long URE


On Apr 16 11:49 AM [e-mail] wrote:

> Can someone ... ANYONE ... explain to me why GGP, the second largest
> mall operator in the US, is declaring bankruptcy and SRS is within
> spitting distance of an all-time low on the same day?

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

This headline is very misleading and irresponsible, in my opinion. The Source at Westbury is a joint venture in which Simon Property Group only has a 25.5% ownership interest for operating rights. Keep in mind that this a company that has $774 million in cash and equivalents as of the end of 2008.

Source: SPG 10K