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

Wednesday, 07 March 2018

Spirit Realty Spinning Off Single-Tenant Properties into REIT

Spirit Realty Capital Inc. is spinning off some 900 of its properties through a separate REIT as part of an effort to reduce its indebtedness and decrease its exposure to retailer Shopko, which accounts for nearly 8 percent of its overall rental income.

Commercial Real Estate Direct Staff Report

Spirit Realty Capital Inc. is spinning off some 900 of its properties through a separate REIT as part of an effort to reduce its indebtedness and decrease its exposure to retailer Shopko, which accounts for nearly 8 percent of its overall rental income.

The Dallas REIT owns a total of 2,480 properties that are net leased to 419 tenants. It had financed some of its properties through an asset-backed securitization issue, Spirit Master Trust 2014, which was initially issued in 2005 and most recently was used in December to raise $674.4 million of non-recourse financing against certain properties. It has a total of $2 billion outstanding.

Spinning off the 784 properties that secure the debt the trust had issued would substantially reduce Spirit Realty's leverage level, which as of the end of last year totaled $3.7 billion.

The new entity, Spirit MTA REIT, which will be spun off to existing Spirit shareholders, will own 895 retail, industrial and office properties with 20.2...





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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

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  • 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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