CRE | Weekly update (vol. 5)

CMBS delinquency falls to lowest rate in two years improvement trend begins once more.

The overall CMBS delinquency, according to the TRepp, Inc. rate fell 19 basis points to 4.36% A rate that almost matches post recession lows of 2016.

The post Great Recession discipline showed by lenders and imposed by regulators is now paying the dividend of very stable property markets with manageable or low rates of supply. This should protect CRE markets, even if a recession were to occur in the next few years.

REITs outpace stocks in April as quarterly earnings generally beat expectations.

According to NAREIT the FTSE NAREIT All REITS index total return rose 0.6% in April. While, the S&P 500 only gained 0.4%. The easing of interest rates and strong quarterly earnings are cited as the main causes.

In fact, there may be more private equity buyouts (such as Blackstone buying Gramercy Property Trust for a premium to its traded stock price) as investors see greater value in real estate than public stock market providers.