Real Estate
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News and Views
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Macro/Technicals
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Sector News, M&A, Capital Raises
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Cantor Flows
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News and Views
The RMZ put in another reassuring session on Friday, just slightly outperforming the S&P, to close up 1.35%. Last week was an outstanding one for reits with the RMZ gaining 5.9% vs. a 3.5% surge in the S&P. Volume was light Friday, as expected, with NYSE volume just 850M shares and Nasdaq volume shy of 1.5B shares. On the desk we were very active in the homebuilder space with both short covering and accounts going long--Barrons had a positive piece on the space over the weekend citing valuation and greatly improved balance sheets(DHI, PHM, LEN, TOL, MDC, KBH, RYL, MTH highlighted). Year highs of 745 in the RMZ is the next significant ceiling to get through and the 700 level should provide a base in the index moving forward.
Macro/Technicals
RMZ: 729.91; +9.74; +1.352XHB: 15.36; +0.20; +1.319
BJK: 26.55; +0.24; +0.912
Sector News, M&A, Capital Raises
o LVS: SJM Holdings asked the Macau government for permission to take over a strategically located piece of land into which a unit of Las Vegas Sands has already poured more than $100 million. The move by the casino operator, controlled by gambling magnate Stanley Ho, compounds the U.S. company's operational difficulties in China's fast-growing gambling hub – WSJ
o Senior Lenders Moving To Foreclose On NYC's Stuyvesant Town – WSJ
o The battle over Manhattan's giant PeterCooper Village and Stuyvesant Town apartment complex intensified Saturday as the banks overseeing the $3 billion first-mortgage debt on the property moved to foreclose.
o The banks, including Bank of America Corp. and U.S. Bancorp, have set a public auction for the 56-building complex for Oct. 4, according to a foreclosure notice viewed by The Wall Street Journal.
o AHT Ashford Hospitality files $50M equity distribution agreement with JMP Securities
o Is Letting Housing Market Crash the Only Way to Save It? – NYT
o Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.
o New mortgage-relief plan set for Tuesday launch from MarketWatch.com
· The Obama administration on Tuesday will launch its latest efforts to rescue the failing housing market
· The program, first announced in March, will focus on reducing mortgage balances
o Real Estate Weekly: Home-buyer tax credit not likely to make an encore from MarketWatch.com
o The real-estate industry was abuzz with chatter earlier this week about the government offering another home-buyer tax credit, after Shaun Donovan, HUD secretary, said on CNN that it was too early to tell if the credit would make a return.
o New Program for Buyers, With No Money Down from NYT
o Fannie Mae is getting back in the market for mortgages with no down payment, available to new home buyers in four states
o Fannie Mae tries to stimulate market for foreclosed homes from L.A. Times
o The mortgage giant quietly launches the HomePath program, which offers subprime-era terms for buyers: minimal down payments, no appraisals, no mortgage insurance and lower minimum credit scores.
If you're a buyer with little cash or a small-scale investor looking for a deal on a foreclosed house, a little-publicized national lending program could be just what you need this fall.
o In struggling housing market, buyers and sellers are out of sync from Wash Post
o Jack Donnelly put off selling his Capitol Hill rowhouse for three years until he thought he saw glimmers of life in the housing market this past spring. At $950,000, he said, the red brick Victorian is a "solid deal."
o Commercial real estate from FT.com – Lex
§ The yield differential between US commercial real estate and Treasuries is the widest since the financial crisis
o Short-sale 'flopping' may be next big housing scam from L.A. Times
§ Lenders lose an estimated $310 million annually in undervalued short-sale transactions, according to a study released in August.
o Keefe, Bruyette & Woods downgrades AVB, MAA, SPG, others
o Analysis: Underwater mortgages are the real problem in housing
o It doesn't make sense for the U.S. to spend money to prop up the housing market by giving buyers incentives, but that doesn't mean sitting back and letting prices crash would "magically" bring the housing market back to life, as some have suggested, according to The Economist. At the core of the problem are homeowners with underwater mortgages who can't afford to sell at prices buyers are willing to pay. "Driving those prices lower won't change that fact," the magazine notes. The Economist/Free Exchange blog (06 Sep.) , The New York Times (free registration) (05 Sep.)
o MBS issued by Ginnie Mae turn into a top-performing investment
o Mortgage-backed securities issued by Ginnie Mae of the U.S. are once again becoming a top-performing investment. Mutual funds that invest in Ginnie Mae-issued MBS have gained 24.8% on average during the past three years, according to Lipper. Meanwhile, the Standard & Poor's 500 stock index has plunged more than 20%. USA TODAY (06 Sep.)
Cantor Flows
AIV, AMB, BPO, BXP, BZH, CDR, CHH, DEI, EDR, EQR, ESS, FVE, GEA, HCP, HOT, HST, HTB, HTZ, IYR, MAC, MAR, MINI, NRF, PCL, PHM, RPT, SPF, URI, WSF, WYNN