Real Estate
| Today's Real Estate Stories | |
|
News and Views
|
Macro/Technicals
|
Active Names
|
Earnings
|
Sector News, M&A, Capital Raises
|
Top Events/Earnings Calendar
|
|
News and Views
Negative economic numbers took the broader markets lower and the RMZ closed down 1% (Still well above 700). Personal spending and income were both flat m/m in June, while expectations had been for a rise of 0.2% and 0.1% respectively. Pending home sales fell 2.6% m/m in June after a 30% decline in May---estimates had been for a 4% increase. The RMZ fell from 717 to 710 post the release but managed to recover nicely.
DHI comments off the call from CEO Donald Tomnitz: “Frankly, I don’t want the tax credits to be re-enacted or be re-created or extended. We want to get back to a normalized market…The next 12 to 24 months will be challenging in the homebuilding industry”. PHM is bid up 3% post numbers. MGM on their call expressed interest in building “multiple properties in Macau”—MGM has the smallest market share of the six casino operators in Macau where revenue surged 70% year over year in July. In contrast MGM’s CityCenter had an operating loss of $128M. AVB reported a slightly better top and bottom line number and DEI reported and guided higher for the year. On the desk we were again better to buy by close to 3:1. Volume was barely over 1B shares on the NYSE.
Macro/Technicals
SP Futures: 1115.40 ; -0.26%RMZ: 715.82; -0.99%
S&P Real Estate Index: 111.65; -1.08%
XHB: 15.06; -2.59%
IYR: 52.94; -0.53%
Leaders: FR +10.8%, FVE +5.9%, GKK +3.8%, NCT +2.6%, CUZ +3.4%, LSE +3.2%, WYNN +2.5%
Laggards: SFI -14.8%, BYD -8.8%, PHM -6.1%, WOLF -5.9%, DHI -5.8%, MHO -5.1%, HOV -4.7%
Active Names
REITs: OHI, SFI, AKR, AIV, EGP, BDN, HME, ARE, JOE
Homebuilders: PHM, MHO, MTH
Travel Leisure: HTZ, MAR, BYD, MGM
Distressed: LALLF
Earnings
PHM… 0.20; $1.31B vs. est. (0.02); $1.23B
ASCA… est. 0.20; $306.0M
BGCP… 0.17; $336.3M vs. est. 0.16; $339.3M
Sector News, M&A, Capital Raises
Real Estate
US MBA Purchase Index +1.5% At 174.9; Last Week 172.3
US MBA Market Index +1.3% At 730.2; Last Week 720.6
US MBA Refinance Index +1.3% At 3,969.0; Last Week 3,918.1
Fed might have had little to do with housing bubble, research shows
· The Federal Reserve's loose monetary policy and low interest rates have been blamed for the U.S. housing bubble, but a paper suggests that the central bank's role in creating the problem was fairly minimal. A working paper from the National Bureau of Economic Research states that low interest rates accounted for only about 20% of a 53% increase in house prices during the 10 years that ended in 2006. The Wall Street Journal (03 Aug.)
Foreclosed On—By the U.S. – WSJ link
· The Fed has foreclosed on some properties and is facing the prospect of more—from homes to commercial buildings—as a result of its souring Bear Stearns portfolio.
Lehman Makes Its Next Property Gamble
· Firm Puts More Cash Into Existing Deals, a Risky Strategy Whose Success Depends on Real-Estate Values Going Higher
· the firm overseeing Lehman's bankruptcy has reinvested more than $1 billion in apartments, office buildings and other commercial property already owned or financed by Lehman
Reality Looms for Builders – WSJ link
· Several home builders say traffic fell sharply after the expiration of the federal home-buyer tax credit.
CIC Seeks Harvard's U.S. Real-Estate Portfolio WSJ
· In a major push into the battered U.S. commercial real-estate market, China's $300 billion sovereign-wealth fund is in advanced talks with Harvard University's endowment to buy its stakes in half a dozen U.S.-focused real-estate funds for about $500 million, according to people familiar with the mat
· The move also contrasts with the retreat from commercial real estate by many American institutional investors, like Harvard, that are struggling with large investments made in the sector during the boom years. The transaction is expected to close in the next couple of months, though it could still fall apart as terms haven't been finalized
Housing Markets That Will Be Strongest by 2014
from BusinessWeek -
Donald Trump and the promoters of his Trump SoHo hotel-condominium were sued by buyers who accused them of fraudulently touting out-sized sales figures to encourage them to buy units and inflate the project's financial health, Reuters reported.
National Health (NHI) Lifts Qtr Div 5% to 60.5c From 57.5c
Dupont Fabros (DFT) boosts 2010 FFO-shr outlook to $1.30-$1.40 from $1.25-$1.35
Gaming, Lodging, Leisure
Hertz (HTZ) 2Q EPS Beats, Reaffirms 2010 Guidance
DTG Says Avis Not Providing Reverse Term Fee ‘Problematic’
· Dollar Thrifty ready to review, consider proposal modifications
· DTG says Avis not providing reverse term fee ‘problematic,’ should be consistent with Hertz
· DTG says fee of greater magnitude would demonstrate confidence
· DTG says Avis offer more favorable to holders from financial point of view
WMS WMS Industries reported Q4 EPS
· 4Q adj. EPS 56c, est. 56c
· 4Q rev. $213.4m vs. est. $216.9m
· WMS Industries Sees FY11 Revenue Below Estimates
· Authorizes $300m buyback, or 13% of current market cap
Top Events/Earnings Calendar
Today Earnings: ASCA, BGCP, CHSP, IVR, LSE, NHI, NNN, PHM, AHT, BEE, BFS, CAR, CHDN, EQY, ESS, FRT, HCN, HT, KRG, MHLD, MIC, REG, RLH, SSS