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I just saw the below note on Bisnow's The First Draft. So, where exactly will cap rates land? A CBRE Econometric Advisors review of cap rates since 1995 says they probably will peak this quarter and you should expect them to compress slowly, with substantial variations across property types. Industrial and multifamily sectors, driven by strong demand, will see the most decline, while office and retail will be more modestly impacted. Cap rates should stabilize at higher-than-prepandemic levels due to steady economic growth and federal budget deficits. For every 100-bps-change in the 10-year Treasury yield, look for caps to move 41 bps for industrial and around 75 bps for the other asset classes, according to CBRE. OK, so when? Slowly, but surely in Q4 2024 and more aggressively in 2025. I decided to look at Chatham Financial's Treasury Forward Curves for the 10-year and interestingly they project a slow steady increase in the 10-year over time (pretty typical yield curve). Does that suggest cap rates should not go down?

Join us today for our Webinar: "Meet Seniors Housing’s Contrarians: A Handful of Investors Go Big in a Challenging Environment." 2:00 - 3:00 PM ET. Fortunes are often made in uncertain times. So it is noteworthy that American Healthcare REIT and PACS Group — two REITs with significant seniors housing and skilled nursing assets in their portfolios — made public offerings in February and April of 2024, respectively. What, if anything, does this mean for the industry? Is now the time for smart money to be deployed –- a case of fortunes being made in a down market? Or perhaps this shift is indicative of other factors? Join us for an insightful webinar, hosted by Seniors Housing Business magazine, where we will delve into these questions. We'll explore current investment and acquisition trends and assess the state of the seniors housing market in our session titled "Meet Seniors Housing’s Contrarians: A Handful of Investors Go Big in a Challenging Environment." The live broadcast — the first in a series of three investment-themed webinars scheduled for 2024 — is set for June 27, 2:00-3:00 pm EDT. Panelists: -Danny Prosky, President & CEO, American Healthcare REIT -Curt Schaller, Co-Managing Partner, Focus Healthcare Partners LLC -Dan Baker, Director, Capital Markets at JLL -Chris Kronenberger, Managing Director, Blue Moon Capital Partners LP -Jessica Johnson, Senior Vice President, Healthcare Banking, BOK Financial -J. P. LoMonaco (moderator), Executive Vice President, Valuation Advisory Services, CBRE Register Here: https://lnkd.in/ebadbCRn This webinar is sponsored by CBRE, a fully integrated platform of dedicated seniors housing investment sales, debt and structured finance, investment banking, and valuation services. To learn more about CBRE's seniors housing platform, visit: https://lnkd.in/efQhR9D3 #webinar #seniorshousing #seniorsliving

Income Durability: The Cornerstone of CRE Investment Investors need to focus on identifying income risks and prioritizing income durability when investing in commercial real estate. At Income Analytics, we have developed INCANS with this duality in mind, providing a comprehensive view of both risk and resilience across our client tenant portfolios. Our latest T200 market reports for the United Kingdom, Western Europe, and the United States helps shine a light on income durability, a fundamental driver of successful investment. https://lnkd.in/eqBmW353

We’ve published our financial statement for the 2023/24 financial year. We’ve had a strong and successful year continuing to grow, invest in our homes, and delivering outstanding customer service. Some of the key highlights of this last year, detailed in our report, include: - 688 affordable homes added to our housing stock, provide more housing options for local communities - A Tenant Satisfaction Measure (TSM) score of 71.9% for our rented homes, reflecting our ongoing commitment to improving services for our customers - Growth in our operating surplus to £90.1 million, enabling both continued reinvestment in current homes, and the construction of new ones - Getting to 62% our homes rated EPC-C or above, on target for all our homes reaching this standard by 2030 - Investment of over £95m in existing properties, including more than £50m in capital improvements to ensure our homes remain safe, modern, and environmentally sustainable for tenants Our Chair, Peter Hawes, said: "This year’s achievements wouldn’t have been possible without the commitment and dedication of our staff and Board members. Their passion, creativity, and tireless efforts have been instrumental in driving Flagship forward.” Read our full release: https://lnkd.in/eviAAY5K Read the full financial report on our website: https://lnkd.in/eQK3A24j #financialstatement #growth #investment #customerservice #housing #UKhousing #FlagshipGroup

IRR Insights   As we navigate 2024, it's essential to reflect on how commercial real estate expectations have evolved from 2023 to now. A source I love is Integra Realty Resources (IRR), so I thought I'd put together a little comparison of their year-in insights and see how these stand against the current market reality.   2023 Expectations - Interest Rates: Anticipated hikes to curb inflation affected borrowing costs and investment decisions. - Market Recovery: Continued post-COVID recovery, with stabilization in hospitality, multifamily, and industrial sectors. - Capital Markets: Cautious optimism with hopes of interest rate stabilization by year-end.   2024 Predictions - Higher for Longer: Continued high interest rates affecting capitalization rates and investment strategies. - Market Volatility: Expected in sectors sensitive to economic fluctuations, like hospitality and multifamily. - Investment Focus: Shift towards safer havens and distressed assets.   Current Market Reality (June 2024) - Interest Rates: High borrowing costs persist, increasing the risk premium required by investors. - Hospitality Sector: Moderate growth in RevPAR, driven by ADR increases but flat occupancy rates. - Multifamily and Industrial Real Estate: Continued supply-demand imbalance and cautious investment. - Capital Markets: Challenges for REITs and CMBS with rising delinquency rates in retail and office sectors. Conclusion The commercial real estate market in 2024 remains cautious with strategic repositioning. The sustained high interest rates and cautious investment climate predicted by IRR have largely materialized. Investors need to focus on disciplined strategies and prudent capital deployment.

G City Demonstrates Resilience with Strong Q2 2024 Performance (TASE: GCT): G City reports 20.2% FFO surge and 8.1% same-property NOI growth, showcasing robust core performance and effective portfolio optimization. Strengthened financial position with reduced leverage, successful bond issuances, and improved credit rating outlook demonstrate enhanced investor confidence and financial flexibility. … Continue reading → #CommodityMarket #Finance #FinancialMarket #PersonalFinance

How are investors navigating today’s fluid capital markets? 1. Uncertainty about the direction of interest rates continues to hamper commercial real estate investment activity. 2. Industrial and multifamily are facing softening fundamentals, but remain historically solid. 3. Office continues to be split between the best assets and most of the rest and retail is growing in importance to institutional investors. 4. Maintaining strong relationships with lenders is always critical, but especially so now. Listen to The Weekly Take for insights from CBRE Capital Markets leaders and Global Chief Economist Richard Barkham. https://lnkd.in/g8fUP-mn

Day 36 Technical terms to consider while investing in REITs 1. Property Types and Diversification: * Property Types: REITs invest in various properties like office buildings, healthcare facilities, apartments, or warehouses. * Diversification: Consider REITs with a diversified portfolio across property types to mitigate risk from a specific sector downturn. 2. Occupancy Rates and Rental Income: * Occupancy Rate: Percentage of leased space in a REIT's properties. Higher occupancy indicates stable income generation. * Rental Income: REITs derive income from rent paid by tenants. Analyze trends and consistency of rental income. 3. Financial Ratios: Debt-to-Equity (D/E) and Funds From Operations (FFO): * Debt-to-Equity (D/E) Ratio: Measures a REIT's financial leverage. Lower D/E indicates stronger financial health. * Funds From Operations (FFO): REITs use FFO, a cash flow metric, to measure their ability to pay dividends. Higher FFO is preferable. 4. Payout Ratio and Dividend Yield: * Payout Ratio: Percentage of FFO distributed as dividends. A sustainable payout ratio ensures consistent income for investors. * Dividend Yield: Annual dividend per share divided by the current share price. High yield can be attractive, but consider sustainability. 5. Underlying Asset Value and Interest Rates: * Underlying Asset Value: The value of the properties held by the REIT. Consider trends and potential for appreciation. * Interest Rates: Rising interest rates can increase borrowing costs for REITs, potentially impacting dividends. #PersonalFinance #FinancialFreedom #FinancialLiteracy #Investing #REITs

A Year from Now You May Wish You Had Started Today 🔥 Earnings To Watch: CBRE (CBRE) Reports Q2 Results Tomorrow 🔥 Inspirational Tone: 🌟 Don't Miss Out on Potential Gains! Take Action Today 🌟 Summary (200 words): As an investment advisor with a strong track record of outperforming Ray Dalio, my passion lies in helping investors maximize the potential of their Health Savings Account (HSA) through strategic investing. In today's fast-paced world, it is crucial to stay updated on the latest earnings reports to make informed investment decisions. 🔥 Tomorrow, CBRE (CBRE) - a leading real estate services and investment firm - is set to report its Q2 results. This presents a golden opportunity for HSA investors looking to diversify their portfolio. With the healthcare industry booming and real estate being a sought-after asset, CBRE's earnings announcement holds great potential for growth. By investing wisely and utilizing your HSA account, you can capitalize on the upward trajectory of this sector. 🌟 So, why wait? Seize the opportunity to safeguard your financial future and prioritize your family's health and wellness. 🌟 Act now and avoid the fear of missing out (FOMO). Start investing in your HSA account today and join the ranks of successful investors who have leveraged healthcare investments to build long-term wealth. Remember, #hsa #investing #healthcare #health #family #wellness are not just hashtags; they represent the pillars of a secure and prosperous future. 💪💰 Don't let hesitation hold you back. Take action, stay informed, and make the most of the earnings season to grow your HSA account. Begin your journey towards financial success and start reaping the rewards tomorrow! 📈✨

The S&P reports that stability is beginning to emerge in CRE markets. While they maintain a negative outlook for 24% of REITs, this is largely due to challenges in the office sector. Despite these difficulties, there are no fundamental issues with REITs themselves. Notably, healthcare and retail REITs have shown better performance and stronger balance sheets. Outside of the office sector, REIT net operating income has slowed but remains positive. Read more in GlobeSt.com: https://lnkd.in/eXtqj3wW