Weekly Report: what happened at WPS last week (0408-0412)?

Why We Expect A Price Recovery In Commercial Real Estate

Lower interest rates should help lower real estate debt costs and start a chain reaction for a recovery in prices. Improved tenant confidence and a sharp reduction in new supply should drive rent growth starting next year. Lower interest rates and lower cap rates should result in higher real estate prices. Invesco expects real estate to start its price recovery in 2024.

The Federal Reserve Must Choose Its Interest Rate Strategy

Desmond Lachman says the Federal Reserve must choose its interest rate strategy. He says the Fed will have to keep interest rates high to meet its inflation target or cut interest rates to stabilize the financial system. The Fed’s predicament stems from keeping monetary policy too loose for too long, he says. The Federal Reserve has helped fuel a commercial real estate bubble and a bubble.

Weekly Report: what happened at WPS last week (0401-0405)?

The Stock Market Is Partying Like It Is 2008

Home Market Outlook Today's Market The Stock Market Is Partying like It Is 2008 Desmond Lachman: The stock market is partying like it is 2008 even at a time of high interest rates. He says the market is ignoring the risk of heightened world trade tensions. The market is also ignoring the slow-motion train wreck in the commercial real estate sector.

VNQI: Asia-Pacific And Europe Will Likely Offer Meager Real Estate Performance

Vanguard Global ex-U.S. Real Estate ETF is a sell due to poor macro-level prospects for international real estate investment holdings. The fund has a low expense ratio, substantial dividend yield, and high diversification. Investors will likely see better performance in international funds that are broadly diversified among multiple sectors. VNQI: Asia-Pacific And Europe Will Likely Offer Meager Real Estate Performance

Weekly Report: what happened at WPS last week (0325-0329)?

Weekly Report: what happened at WPS last week (0318-0322)?

iShares International Developed Property ETF declares quarterly distribution of $0.1031

IShares International Developed Property ETF declares quarterly distribution of $0.1031. 30-Day SEC Yield of 3.43% as of Feb. 29. Payable Mar 27; for shareholders of record Mar 22; ex-div Mar 21. WPS will be paid on Mar 24, 2024.

Dovish Decisions

U.S. Equity markets advanced this week while benchmark interest rates retreated after the Fed reiterated its rate cut path in 2024. Rebounding after two straight weeks of declines, the S&P 500 rallied 2.2% this week and extended its year-to-date gains to over 10%. Real estate equities posted mixed performance as a rebound from rate-sensitive names was offset by weakness from data center REITs.

Who's On The Hook For Multifamily CRE Mortgages? #1 Taxpayers, Far Ahead Of #2 Banks

Multifamily segment of Commercial Real Estate is holding up better than office, retail and lodging. Total mortgages backed by multifamily properties rose by 4.4% year-over-year in Q4 to $2.09 trillion. Taxpayers are on the hook for 54.8% of all multifamily mortgages. Yet, US banks and thrifts and foreign banks hold only a small-ish portion.

Weekly Report: what happened at WPS last week (0311-0315)?

Insidious Inflation

U.S. Equity markets declined for a second straight week as benchmark interest surged to the cusp of three-month highs. The S&P 500 declined by 0.4% this week. Real estate equities- the most "Fed-sensitive" segment of the economy- were slammed. The REIT Index tumbled 2.9% on the week.

Weekly Report: what happened at WPS last week (0304-0308)?

Weekly Report: what happened at WPS last week (0226-0301)?

Ghosts Of Inflation Past

Weekly Report: what happened at WPS last week (0219-0223)?

Chart Of The Moment: Commercial Real Estate's Surprising Rally

Commercial mortgage-backed securities (CMBS) rated BBB have outperformed Treasuries, corporate bonds, and other securitized credit sectors for the year to date. Some of this rally in CMBS likely was triggered by market expectations that interest rates peaked. The commercial real estate market's impending demise has been well-documented.

Weekly Report: what happened at WPS last week (0212-0216)?

CMBS: Measured Optimism Amidst Great Uncertainty