Commercial real estate could be the next catalyst for a major market correction….. (according to Bernanke). Among the key points noted: 1. Commercial market is potentially bigger than the residential market (hence, a much larger problem here) 2. Increased vacancy, declining rents, falling prices. That almost sum up the 3 pillars of real estate. If… Continue reading Bernanke : Commercial Property May Pose Risk for Economy
GR pointed me to the MMFAIS site, highlighting how CS has been selling lots of stuffs (err.. I mean holdings). Among the very long list includes counters like ACC and ARE; both are REITs. The interesting fact here is 100% of both counters are sold off. A lot of the sales took place this month… Continue reading Credit Suisse Selling ACC and ARE among many others.
I have been bearish on various REITs for quite some time. The key reason is the amount of leveraged they have. Surely, in this economic climate, financial institutions will be cutting back and reducing their lending exposures With this in mind, highly leveraged REITs will faced significant challenges in raising funds to finance their borrowings.… Continue reading Alexandria Real Estate (ARE) : Bearish Outlook