Many publicly traded U.S. REITs have lost most of their value
Starwood Capital, JPMorgan among those in hunt for bargains
The market for mortgage-backed securities was in free fall, with fear running rampant and banks seizing collateral.
So Tom Barrack, the chairman of real estate investment trust Colony Capital Inc., published an 1,800-word plea for the Federal Reserve to buy bonds backed by homes, cars and other assets and for banks to halt margin calls.
That was last Saturday. In the week since, three top investors in the sector have engaged restructuring advisers, two others sold $7 billion of debt at a discount and publicly traded mortgage REITs in the U.S. lost more than $12 billion of market value, bringing total declines this year to at least $50 billion.
The carnage shows no signs of abating. Prominent asset managers includingBlackstone Group Inc., TPG and Apollo Global Management Inc. have been sucked into the vortex wrought by the coronavirus pandemic, with their associated mortgage REITs losing more than two-thirds of their value on average so far in 2020.
List of Firms and Decline through April 2 AG Mortgage Investment Trust(88 %) Exantas Capital(86 %) MFA Financial(86 %) Granite Point Mortgage Trust I(84 %) Western Asset Mortgage Capital(84 %) Invesco Mortgage Capital(82 %) Redwood Trust(82 %) TPG Re Finance Trust(81 %) Two Harbors Investment(77 %) New York Mortgage Trust(76 %) Ladder Capital(74 %) New Residential Investment(74 %) Colony Credit Real Estate(73 %) Cherry Hill Mortgage Investment(72 %) Anworth Mortgage Asset(72 %) Apollo Commercial Real Estate(71 %) Arbor Realty Trust(70 %)
In some cases, asset managers’ private funds are bidding on assets being unloaded by their own publicly traded REITs. New Residential Investment Corp., managed by Fortress Investment Group, sold bonds with a face value of $6.1 billion. One of the buyers was an entity also affiliated with Fortress, the company disclosed in a filing Thursday. . .
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The WSJ's Esther Fung last night detailed the growing phenomenon of selling malls online.That mall sales are going digital shouldn't be surprising in 2017, but check out the recent sale of Vista Ridge Mall in Odessa, Texas.
It could give pause to bottom-fishing mall/shopping-center investors.
Needless to say some people "trust" more than others, but what the heck let's just scan the open skies to see what's on the radar screens. As they say there's a lot of opportunities out there. Let's see if your MesaZona blogger can hit on just one - right here in Mesa: DuPont Fabros Technologies
6 Great Data Center REITs For 2017
First some background and context.
The need for data centers is growing, and these REITs could be a smart way to invest in it
Data centers are a relatively new and growing form of real estate to invest in. As of 2017, there are several pure-play data center REITs listed on U.S. stock exchanges, including the industry's two largest companies, Equinix(NASDAQ:EQIX) and Digital Realty Trust(NYSE:DLR).
Here's why data center REITs could be a smart addition to your portfolio, and a little information about each of the options.
Company
Symbol
Market Cap
Recent Share Price
Dividend Yield
Equinix
EQIX
$26.9 Billion
$376.01
2.13%
Digital Realty Trust
DLR
$16.6 Billion
$103.98
3.58%
CyrusOne
CONE
$4.2 Billion
$48.20
3.49%
QTS Realty Trust
QTS
$2.3 Billion
$48.76
3.20%
DuPont Fabros Technology
DFT
$3.7 Billion
$47.43
4.22%
CoreSite Realty
COR
$2.9 Billion
$86.51
3.70%
PLEASE NOTE: Chart is author's own.
Market cap, share prices, and dividend yields are current as of 3/10/17.
" . . Some of the share prices more than doubled over those years, as part of the commercial property bubble that got so huge that the Fed keeps publicly fretting about it, naming it as one of the reasons for raising interest rates, precisely to tamp down on the valuations. The Fed is worried that an implosion of these inflated commercial property values can take down the banks. Mall REITs were part of this inflated commercial property universe, and they soared with it. That entire universe is now peaking. But separately, mall REITs are also caught up in the relentless brick-and-mortar retail meltdown, as online shopping is taking over. This is a structural shift that will continue to progress. Mall owners are already trying to find a way to “repurpose” their malls. But this isn’t going to be smooth. As so many times, Private Equity firms are in the thick of it. . .: Read… I’m in Awe of How Fast Brick-and-Mortar Retail is Melting Down.
Needless to say some people "trust" more than others, but what the heck let's just scan the open skies to see what's on the radar screens. As they say there's a lot of opportunities out there. Let's see if your MesaZona blogger can hit on just one - right here in Mesa: DuPont Fabros Technologies
Here's why data center REITs could be a smart addition to your portfolio, and a little information about each of the options.
The need for data centers is growing, and these REITs could be a smart way to invest in it
