Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 07 June 2018

Kimco Sees Investor Demand for Retail Properties Strengthening

Investors appear to be warming up to retail real estate once again, driven by the lofty yields that can be had from such properties. Kimco Realty Corp., for instance, is regularly fielding five or six offers for properties it brings to the sales market. That's up from the three to four it was getting for similar properties it offered last year.

Commercial Real Estate Direct Staff Report

Investors appear to be warming up to retail real estate once again, driven by the lofty yields that can be had from such properties.

Kimco Realty Corp., which earlier this year set a goal of selling up to $900 million of properties that are outside of its core coastal markets and Texas, said it's regularly getting offers from five or six investors for properties it puts on the sales block. That's up from the three to four offers it was receiving last year. Its aim is to sell properties for prices that result in capitalization rates of roughly 7.5 percent.

Meanwhile, the thinking is that the worst days are over for the retail sector - most of the weakest retailers have been scrubbed from the earth, leaving only better performers. Investment bank Evercore ISI predicts that 3,000 physical stores will open this year, from retailers such as Hobby Lobby, Dollar General, Burlington and Sprouts Farmers Market.

In fact, the occupancy rate for anchor space in Kimco's portfolio increased in...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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