Malls and theme parks and mounting losses, commercial and multifamily lending dips, housing sentiment rises, where disaster looms, and three good REITs for a February roll.
In Today's News
Malls Spent Billions on Theme Parks to Woo Shoppers. It Made Matters Worse.
The Wall Street Journal reports today the bills are coming due for big operators who thought entertainment was a solution to a declining business.
Why it matters: This piece focuses on the travails of two major privately held mall operators but can help inform thinking about investments in publicly held hospitality and mall REITs, or real estate investment trusts, as well.
Commercial/Multifamily Borrowing Falls 18% in 4Q20
The Mortgage Bankers Association (MBA) says today that commercial and multifamily mortgage loan originations were 18% lower in the fourth quarter of 2020 compared to a year ago but increased 76% from the third quarter of 2020.
Why it matters: If borrowers are confident enough to take out loans for projects this early in the pandemic recovery, that may be a good sign of better things to come for CRE and multifamily investors.
Housing Sentiment Edges Upward as Reported Conditions Favor Sellers
The Fannie Mae (OTCMKTS: FNMA) Home Purchase Sentiment Index increased in January to 77.7, a 3.7-point improvement from December. Consumers reported a significantly more positive view of home selling conditions month over month, with that particular component jumping 16 percentage points.
Why it matters: This report provides quantitative confirmation to qualitative observations from around the country that market conditions remain quite good for selling a house. Buying a house -- that's a bit tougher.
Today on Millionacres
New Report Lays Out Where Natural Disasters Pose Highest Risk
According to a new report from CoreLogic (NYSE: CLGX), there were more than 10 catastrophic weather events that caused over $1 billion in damages last year in the United States. What states are most likely to see more of the same?
Why it matters: Millionacres' Aly Yale points out that if you're a real estate investor, understanding these risks is critical before expanding your portfolio. For one, you'll want to secure adequate insurance to hedge your risk. It can also shed light on your property's long-term value.
3 High-Yield REITs to Buy in February
The average REIT is already paying twice the S&P 500 average for dividends, but there are many that are going well above that. Millionacres' Matthew DiLallo chooses three that merit particular attention this month.
Why it matters: Yield traps are no fun. Check out these suggestions about three stocks that pay well -- and may well hold up even better.