Hints and tips:
...The $60bn Blackstone Real Estate Income Trust generated $2.7bn in cash flows in 2023, mostly in rents from a portfolio spanning thousands of warehouses, apartment buildings and data centres across the US...
...Reits are financed with both debt and equity, so an accurate comparison requires a bit more work. Suppose a Reit has a loan-to-value ratio of 35 per cent (as was the case on average in mid-2023)....
...It has had to limit investor redemptions from its flagship Blackstone Real Estate Income Trust....
...Related Fund Management, an investment arm of Related Group, the owner of New York’s Hudson Yards, partnered with two non-profits — Community Preservation Corp. and Neighborhood Restore....
...Given the financial limits of at least some borrowers, then, the big jump in rates may increase interest income at the Reits....
...Nonetheless, its office rental income fell 4 per cent for the first half from a year earlier to Rmb612.3mn....
...If the labour market worsens, and incomes fall, rent revenue will decline and debt payments will become even harder to meet....
...According to Moody’s, offices make up just $750bn of the $4.4tn in income-producing CRE loans. Apartment buildings, or so-called multi-family housing rentals, account for a bigger slice at $2tn....
...David Auerbach, who runs the Residential Reit Income ETF, sums up the puzzle: “How can everyone else’s valuation be going down, and theirs is going up?”...
...As for the numerator when calculating yields, our guru said the industry is notorious for the numerous fiddles employed to flatter incomes....
...This bodes poorly for agency MBS markets — mortgages on single-family homes and multi-family apartment buildings, basically — where banks are massive players....
...The inflation-triggered rise in fixed income yields is a seismic change to the attractions of Reits and a host of other “bond proxies” that have done well in recent years....
...Reits, as they’re commonly known, are required by law to pay out most of their income every year in distributions. In return, they’re exempt from paying corporate taxes....
...Ethan is off this week, moving from one tiny New York apartment to another. So I’m the one to email: robert.armstrong@ft.com. Bad vibes and good returns People on Wall Street are grouchy....
...geared towards low-income families....
...According to Bloomberg, it was the wealthiest zip code in America last year, with an average income of $2.2mn....
...But are the new landlords helping or hindering the low-income populations that occupy them?...
...(FT) Deutsche Bank probes Trump banker’s apartment deal Donald Trump’s longtime private banker at Deutsche Bank is facing an internal investigation into the terms of a previously unknown apartment deal...
...After all, it is far easier to buy and sell Reit shares than it is to trade ownership stakes in a strip mall or apartment complex....
...The 150-year-old institution posted a worse than expected 27 per cent fall in net income in the three months to September....
...property for K Raheja Corp, a leading developer....
...You could ascribe some weakness to the rise in interest rates affecting income vehicles such as Reits....
...In developed markets, Reits typically pledge to distribute at least 90 per cent of rental income to shareholders, which allows them to avoid corporate income tax on this revenue....
...“The more jobs, the more office space you need, the more retailers prosper, more apartments that get let.”...
...Graham Barnet, chief executive officer of PRS Reit, says the fund was “focused on housing”. “We don’t think families should be living in apartments,” he adds....
International Edition