Delinquent CMBS Loans Continue to Decline

February 12, 2015 · reit.com

With mountains of real estate debt coming due in the next three years, borrowers appear to be taking advantage of favorable market conditions to prepay loans tied to commercial mortgage-backed securities (CMBS).

The CMBS delinquency rate, which includes loans that are 30 days or more past due, fell to 5.66 percent in January, compared with 7.25 percent a year earlier, according to commercial real estate consulting firm Trepp LLC. It marked the 18th monthly decline in the past 20 months.

Senior Housing Market Expected to Remain Lively for REITs in 2015

February 05, 2015 · reit.com

Health care REITs will continue to actively pursue senior housing assets in 2015, spurred on by low interest rates, attractive financing, solid returns and robust demand, according to market observers.

REITs Outperform Broader Market in Solid Start to 2015

February 02, 2015 · reit.com

REITs started 2015 on solid ground, as continued low interest rates and promising fundamentals helped the sector outperform the broader market in January.

The FTSE NAREIT All REITs Index had a total return of 5.6 percent last month, while the return on the S&P 500 Index fell 3.0 percent.

Anthony Paolone, senior analyst at JP Morgan, noted that the broader market was impacted by jitters concerning oil prices, the dollar and Europe’s economy. Meanwhile, the yield on the 10-year Treasury note fell 0.5 percent in January.