Eviction bans by state, forbearances continue falling, SBA issues FAQ on PPP, hospitality and office REITs tell different tales.
In Today's News
The Current Status of Eviction Bans by State
Federal, state, and local governments and agencies have imposed a patchwork of eviction bans in the wake of the coronavirus, and many of them have expired. But not all. Here's a list of those by state.
Why it matters: Information like this is vital to every landlord and tenant who finds themselves facing this unfortunate circumstance. Landlords need their tenants to pay rent to maintain their own livelihoods and their properties. An explosion of evictions will cause massive societal problems. This is a conundrum on a massive scale.
Forbearances Dip Below 4 Million for First Time Since Early May
Black Knight (NYSE: BKI) reported today that the number of mortgages in active forbearance fell by another 71,000 over the past week, pushing the total under 4 million for the first time since early May.
Why it matters: While it's clearly a good thing that forbearances are falling, and some of those were granted to people who could pay their mortgages anyway, that metric doesn't speak to how many homeowners can keep up their payments now that they're due. Watch the delinquency and foreclosure reports, too.
SBA Issues FAQ on PPP Forgiveness Rules
The U.S. Small Business Administration (SBA) this week issued a set of answers to frequently asked questions about loan forgiveness for the hundreds of billions of dollars issued in Payroll Protection Program loans under the CARES Act.
Why it matters: Many sole proprietors, independent contractors, and other self-employed people with no employees got PPP loans. These FAQs explain how to correctly apply for forgiveness so they don't have to be paid back.
Today on Millionacres
Are Hospitality REITs Safe Right Now?
The hospitality sector has been hit particularly hard by the pandemic, with thousands of operators choosing between shutting down completely or operating at ultra-low occupancy levels. Is it time to look at some beaten-down real estate investment trusts (REITs)?
Why it matters: It's always tempting to call a bottom and commit funds to a proven company in a rough spot; the operators highlighted by Millionacres' Matthew DiLallo in this piece fit that mold. But, as he points out, their cash burn rate and the prospects for economic recovery and safe travel aren't creating much optimism here.
Will Work From Home Crush Brookfield Property?
Brookfield Property's (NASDAQ: BPY) (NASDAQ: BPYU) stock is down about 35% for the year, but this operator of nearly 100 million square feet of Class A office space in multiple major markets is confident in a rebound.
Why it matters: The REIT's management feels that the need for social distancing and the desire to have staff in house for cultural and efficiency purposes will sustain a business that hasn't been hit that hard yet anyway. Office space like this tends to be under long leases, and their rent payment performance has been high. These seem like sound arguments.