Commercial Delinquencies Rise Again, Data Goes Ignored: Mortgage Bankers Association

  • Commercial Real Estate delinquency rates for loans held >30 days rose to 5.69% (as REITs continue to hit record highs)
  • CMBS debt has continued to have the highest delinquency rate of all debt by sector
  • For a reminder of the early warnings on regional bank exposure, see the Doo Doo 32
  • For my 2010 commercial real estate outlook (which thus far has been right on the money) see CRE 2010 Overview CRE 2010 Overview 2009-12-16 07:52:362.85 Mb

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Tuesday, 23 March 2010 00:00

Newscan from the Weekend Past

Comments on global news from the weekend past...

Bloomberg.com:

  • $7.88 billion of slices underwritten by Deutsche Bank under downgrade review since underlying CMBS have been downgraded (CDOs are MAX CMBS I Ltd. Series 2007-1 and Series 2008-1), S&P has already downgraded 2007-1 to BB+
  • A BlackRock presentation stated that Deutsche Bank's CDO portfolio does not forecast for tranche losses
  • The MAX CDOs are among the Federal Reserve's holdings in Maiden Lane III
  • AIG provided Deutsche Bank with $5.61 billion in collateral before the Maiden Lane III transfer

FT Article: Merkel v. Greece Round 239,084.67 (Ding, ding) @ http://www.ft.com

  • Merkel insists Greece has not asked for money, and Greece does not need any [Let's permanently attached this to Merkel's credibility rating]
  • European Commission and IMF officials are far from same page as Merkel
  • The article wasn't dense with info, which is not unusual considering the subject matter, but what is clear is that the bazooka everyone was talking about has no trigger, and probably loaded with more baby powder than gunpowder!
  • That is going to be a big issue with Greek debt maturing in April if they have no revenue to pay it off

FT Article @ http://www.ft.com

  • British Airway strikes did nothing to dampen travel plans over the weekend
  • Examples like this are calling the union's bluff, they are not stopping society, potentially leaving room for union break ups by private companies, sovereigns and municipalities if they choose so, this could be a blip on the radar or an emerging trend, so something to continue to watch
Published in BoomBustBlog

Some of the top secret AIG bailout info is out. Guess who's at the heart of it, making money by creating straight trash, selling it to its clients then buying insurance to benefit from its inevitable crash?
I have been warning about Goldman's ability to sell trash to its clients
for some time now.

This is not a short post, for it is packed with a lot of supporting information, analysis and data. If you are looking for quippy paragraph, soundbyte or quick headline to get an overview of,,, well whatever, click here, or better yet, click here. For everyone else who may be looking for deeper investigative analysis and the unbridled TRUTH for a change, please continue on.

First a little background info. Goldman is supremely overvalued in my opinion. It is even more so considering much of its profit is generated solely from the raping of its clients. I say this holding absolutely no ill will towards Goldman. This is strictly factual. Let's walk through the evidence, of profit potential, valuation, and the stuff behind some of the value drivers in their business model, like brokerage and investment banking...


Published in BoomBustBlog

Taubman Centers, Inc. 4Q09 results

TCO reported weak 4Q09 results with sagging core revenues and operating results. The rental income (minimum rents and percentage rents) declined 5.8% (y-o-y) to $92.5 mn from $98.2 mn in 4Q08. However, the decline in non-cash expenses like depreciation helped reduce the impact on bottom line from an accounting perspective with net income (excluding impairment charges and a litigation charge) declining lower 1.8% (y-o-y). Adjusted FFO which excludes the impact of non-cash items like deprecation declined 5.1% (y-o-y) to $76.6 mn from $80.8 mn in 4Q08.

Minimum rents declined 5.0% (y-o-y) to $87.1 mn from $91.6 mn in 4Q08. Average occupancy dipped to 89.5% from 90.5% in 4Q08 and average base rent declined 3.2% (y-o-y) to $42.56 PSF (per sq ft) from $43.96 PSF in 4Q08. While the tenant sales per square feet were reported to improve 3.8% (y-o-y), the percentage rents declined 17.1% (y-o-y) to $5.5 mn from $6.6 mn in 4Q08 largely owing to reduced occupancy and reduced percentage rents as % of mall tenant sales. Other revenues which include shopping centre related revenues and lease cancellation revenues dropped nearly 50% (y-o-y) to $8.4 mn from $16.8 mn in 4Q08 largely owing to negligible lease cancellation revenues of 0.5 mn against $7.5 mn in 4Q08. The decline in core revenues were offset by increase in management fees from Macao Studio City development fees as well as higher expense recoveries. Total revenues were down 1.9% (y-o-y) to $186.3 mn from $189.9 mn in 4Q08.

Published in BoomBustBlog

From PR Newswire:

Simon Property Group Makes $10 Billion Offer to Acquire General Growth Properties

Offer Provides 100% Cash Recovery Plus Accrued Interest To All Unsecured Creditors; Would Accelerate General Growth's Emergence From Bankruptcy

General Growth Shareholders Would Receive Value Exceeding $9.00 Per Share, Including $6.00 Per Share In Cash Plus Assets Valued At More Than $3.00 Per Share, While Avoiding Likely Dilution From Stand-Alone Recapitalization

Offer Supported By General Growth's Official Unsecured Creditor Committee

Acquisition of General Growth Portfolio By Best In Class Operator Offers Significant Value-Creation Opportunity For Simon Shareholders

Published in BoomBustBlog

Hat tip BoomBustBlogger Bill. It appears that the only one's who are actually ever chastised for defaulting on debt obligations are people. To think, some are still bullish on the banks.


Down to its last chance

Developers’ delays and funding woes spur the state to serve notice on Columbus Center, the $800m complex planned to span the Pike

(Boston Globe) Massachusetts transportation officials have begun severing ties with the developers of Columbus Center, the latest, and perhaps last, chapter in one of the most ambitious and controversial projects in Boston’s development history.

The state Department of Transportation yesterday told the project’s developers they are in default of their 99-year lease, after stalling on plans to build an $800 million complex above the Massachusetts Turnpike that would have united the Back Bay and South End neighborhoods.

The developers face termination of the lease not only because they have failed to complete construction, but because they have not properly maintained the property, said a top agency official. He asked that his name not be used because the default notice is not yet public.

Because of funding problems, the developers - the WinnCompanies and the California state pension fund, known as Calpers - stopped construction in April 2008 on the six-building complex of condominiums, hotel, stores, and parks on a massive deck over the highway. Since then, they have neither cleaned up nor secured the building site to the level the state has demanded, according to the transportation official with knowl edge of the situation.

Published in BoomBustBlog

Hat tip BoomBustBlogger Bill. It appears that the only one's who are actually ever chastised for defaulting on debt obligations are people. To think, some are still bullish on the banks.

Down to its last chance

Developers’ delays and funding woes spur the state to serve notice on Columbus Center, the $800m complex planned to span the Pike

(Boston Globe) Massachusetts transportation officials have begun severing ties with the developers of Columbus Center, the latest, and perhaps last, chapter in one of the most ambitious and controversial projects in Boston’s development history.

The state Department of Transportation yesterday told the project’s developers they are in default of their 99-year lease, after stalling on plans to build an $800 million complex above the Massachusetts Turnpike that would have united the Back Bay and South End neighborhoods.

The developers face termination of the lease not only because they have failed to complete construction, but because they have not properly maintained the property, said a top agency official. He asked that his name not be used because the default notice is not yet public.

Because of funding problems, the developers - the WinnCompanies and the California state pension fund, known as Calpers - stopped construction in April 2008 on the six-building complex of condominiums, hotel, stores, and parks on a massive deck over the highway. Since then, they have neither cleaned up nor secured the building site to the level the state has demanded, according to the transportation official with knowl edge of the situation.

Taubman Centers, Inc. 4Q09 results

TCO reported weak 4Q09 results with sagging core revenues and operating results. The rental income (minimum rents and percentage rents) declined 5.8% (y-o-y) to $92.5 mn from $98.2 mn in 4Q08. However, the decline in non-cash expenses like depreciation helped reduce the impact on bottom line from an accounting perspective with net income (excluding impairment charges and a litigation charge) declining lower 1.8% (y-o-y). Adjusted FFO which excludes the impact of non-cash items like deprecation declined 5.1% (y-o-y) to $76.6 mn from $80.8 mn in 4Q08.

Minimum rents declined 5.0% (y-o-y) to $87.1 mn from $91.6 mn in 4Q08. Average occupancy dipped to 89.5% from 90.5% in 4Q08 and average base rent declined 3.2% (y-o-y) to $42.56 PSF (per sq ft) from $43.96 PSF in 4Q08. While the tenant sales per square feet were reported to improve 3.8% (y-o-y), the percentage rents declined 17.1% (y-o-y) to $5.5 mn from $6.6 mn in 4Q08 largely owing to reduced occupancy and reduced percentage rents as % of mall tenant sales. Other revenues which include shopping centre related revenues and lease cancellation revenues dropped nearly 50% (y-o-y) to $8.4 mn from $16.8 mn in 4Q08 largely owing to negligible lease cancellation revenues of 0.5 mn against $7.5 mn in 4Q08. The decline in core revenues were offset by increase in management fees from Macao Studio City development fees as well as higher expense recoveries. Total revenues were down 1.9% (y-o-y) to $186.3 mn from $189.9 mn in 4Q08.

 

Hat tip BoomBustBlogger Bill. It appears that the only one's who are actually ever chastised for defaulting on debt obligations are people. To think, some are still bullish on the banks.

Down to its last chance

Developers’ delays and funding woes spur the state to serve notice on Columbus Center, the $800m complex planned to span the Pike

(Boston Globe) Massachusetts transportation officials have begun severing ties with the developers of Columbus Center, the latest, and perhaps last, chapter in one of the most ambitious and controversial projects in Boston’s development history.

The state Department of Transportation yesterday told the project’s developers they are in default of their 99-year lease, after stalling on plans to build an $800 million complex above the Massachusetts Turnpike that would have united the Back Bay and South End neighborhoods.

The developers face termination of the lease not only because they have failed to complete construction, but because they have not properly maintained the property, said a top agency official. He asked that his name not be used because the default notice is not yet public.

Because of funding problems, the developers - the WinnCompanies and the California state pension fund, known as Calpers - stopped construction in April 2008 on the six-building complex of condominiums, hotel, stores, and parks on a massive deck over the highway. Since then, they have neither cleaned up nor secured the building site to the level the state has demanded, according to the transportation official with knowl edge of the situation.

Taubman Centers, Inc. 4Q09 results

TCO reported weak 4Q09 results with sagging core revenues and operating results. The rental income (minimum rents and percentage rents) declined 5.8% (y-o-y) to $92.5 mn from $98.2 mn in 4Q08. However, the decline in non-cash expenses like depreciation helped reduce the impact on bottom line from an accounting perspective with net income (excluding impairment charges and a litigation charge) declining lower 1.8% (y-o-y). Adjusted FFO which excludes the impact of non-cash items like deprecation declined 5.1% (y-o-y) to $76.6 mn from $80.8 mn in 4Q08.

Minimum rents declined 5.0% (y-o-y) to $87.1 mn from $91.6 mn in 4Q08. Average occupancy dipped to 89.5% from 90.5% in 4Q08 and average base rent declined 3.2% (y-o-y) to $42.56 PSF (per sq ft) from $43.96 PSF in 4Q08. While the tenant sales per square feet were reported to improve 3.8% (y-o-y), the percentage rents declined 17.1% (y-o-y) to $5.5 mn from $6.6 mn in 4Q08 largely owing to reduced occupancy and reduced percentage rents as % of mall tenant sales. Other revenues which include shopping centre related revenues and lease cancellation revenues dropped nearly 50% (y-o-y) to $8.4 mn from $16.8 mn in 4Q08 largely owing to negligible lease cancellation revenues of 0.5 mn against $7.5 mn in 4Q08. The decline in core revenues were offset by increase in management fees from Macao Studio City development fees as well as higher expense recoveries. Total revenues were down 1.9% (y-o-y) to $186.3 mn from $189.9 mn in 4Q08.