REITBull

Regency Centers Would Be Lucky Just to Maintain Present Levels

Overall, I think it's a pretty good analysis. I'd only question the 8% cap rate given their tenant base.

With Commercial Real Estate's Bleak Outlook, Tread Lightly

Look at the underlying index, IYR. It has been rebalanced with some of the better capitalized REITs. Many of the top holdings have had successful equity offerings in the past few months, allowing them to pay off up coming maturties and improve their balance sheets. SRS was bled dry several months ago.


On May 23 03:10 PM -osgo- wrote:

> Is there any other info? What's so screwed about the environment
> is that in a normal time, SRS would be sky high. Basic assumptions
> about economic activity have been thrown out the window because of
> the bail-outs. What should be a screaming buy has become a wealth-destroyer...Eve...
> You Know Is Wrong and it's not the Fed but the Ministry of Love.
>
>
> What other reasons are holding it down [SRS]? Elucidation please?
>
>
> -osgo

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

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

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