Internacional

REITs

Vivemos em um mundo globalizado e dinâmico,  onde as mudanças e oportunidades estão por toda parte.

Estamos aqui no Blog, sempre ligados nas tendências e a mais recente são as oportunidades de investimento fora do país.

Também buscamos atender sempre às solicitações dos amigos e esta foi com certeza a mais recorrente nos últimos dias.

Global

Vejo fundos de investimento sendo criados, focados no mercado externo, vejo a discussão cada vez mais incidente sobre os REITs ( os FIIs americanos ), vejo uma preocupação cada vez maior com o intervencionismo do governo e grandes investidores optando por ações de empresas em outros países.

São preocupações justificadas?  Saberemos aqui 😀

REITS

Se mais alguém tiver interesse por REITs (Real Estate Investment Trust ou FIIs americanos) e puder complementar …

Basicamente são de 3 tipos:

Os de Hipoteca (Mortgage), os de Investimento (Equity REITs) e os Híbridos (uma mistura dos dois).

Mortgage REITs: possuem retornos maiores, devido ao risco maior a que se expõem. Quem lembra da crise recente, as hipotecas são justamente onde o fato explodiu. São equivalentes aos financiamentos, podem proporcionar grandes retornos ou grandes perdas.

Equity REITs: esses seriam os mais próximos que temos em relação aos nossos FIIs, onde o objetivo é a exploração do imóvel para aluguel e obtenção de renda.

Hybrid REITs: Mais ou menos um FII de FIIs de lá, onde ambos os tipos são mesclados, aproveitando o que de melhor cada um tem e tentando minimizar o que há de pior (risco).

o recebimento dos rendimentos também é bem complicadinho; aqui nosso rendimento é isento e divididos em Amortização ou Rendimento. Lá existe um terceiro tipo que separa o ganho de capital ( Rendimento de Aluguel, Amortização e Ganho de Capital ).

o imposto depende da sua renda.

Mais informações:

http://www.investopedia.com/terms/r/reit.asp

http://www.reit.com

http://us.spindices.com/indices/equity/sp-united-states-reit-us-dollar

Tributos Envolvidos

http://seekingalpha.com/article/1233411-understanding-the-taxation-of-reit-distributions

Lista de REITS

http://www.reit.com/Investing/ListofREITFunds/MutualFunds.aspx

Busca de Dividendos

http://www.dividend.com

http://www.dividendchannel.com/slideshows/?slideshow=mreits&page=1

* Contribuição do amigo Eric:

“eu vejo nesse site http://www.dividend.com, como por exemplo o OLP http://www.dividend.com/dividend-stocks/financial/real-estate-development/olp-one-liberty-properties/ tem os rendimentos recentes e para quem paga tem o histórico.”

* Contribuição do XReis:  Top REITs

http://money.usnews.com/funds/etfs/rankings/real-estate-funds  

* Contribuição do Trix

O que qualifica uma empresa como um REIT?

• Invistir em pelo menos 75 % de seus ativos totais no setor imobiliário;
• Deduzir pelo menos 75 % de sua receita bruta de aluguéis de imóveis, juros sobre hipotecas de financiamento imobiliário ou de venda de imóveis;
• Pagar pelo menos 90 % de sua renda tributável na forma de dividendos aos acionistas em cada ano como, resultado, REITs não podem geralmente deixar de distribuir seus ganhos;
• Ser uma entidade que é tributável como uma corporação;
• Ser gerida por um conselho de diretores ou administradores;
• Ter um mínimo de 100 acionistas e não ter mais de 50 % de suas ações detidas por cinco ou menos pessoas.

986 comentários em “Internacional”

  1. 6 REITs That Pay Dividends Monthly

    Real estate investment trusts (REITs) is one of the most popular options for investors seeking regular income. A REIT must distribute more than 90% of its earnings each year in order to maintain its tax-free status.1 For investors, that means relatively high dividend payments and consistent dividend policies.
    REITs rebounded from the subprime mortgage meltdown of 2008 that hammered real property values for some years.2
    They have become popular with investors because they often pay a higher dividend yield than corporate or government bonds. The shares also are traded on exchanges, giving them the potential for growth as well as income.3 The average annual return, as measured by the MSCI U.S. REIT Index, was 9,28% as of April 2020.2
    However, greater returns come with greater risks, as we certainly learned in 2008. Real estate is not for the faint of heart, even when you’re leaving the decisions up to the professionals.
    KEY TAKEAWAYS
    Real estate investment trusts (REITs) are a great investment for collecting steady income.
    There are a handful of REITs that pay monthly dividends.
    Some of the most well-known monthly dividend payers include American Capital Agency Corporation (AGNC) and EPR Properties (EPR).
    Meanwhile, other monthly dividend REITs are no longer paying out dividends monthly or have suspended dividends altogether, such as Apple Hospitality (APLE) and Bluerock Residential Growth (BRG).
    REITs That Pay Out Monthly
    While most REITs distribute dividends on a quarterly basis, certain REITs pay monthly. That can be an advantage for investors, whether the money is used for enhancing income or for reinvestment, especially since more frequent payments compound faster.
    Here are a half-dozen prospects, each specializing in a different niche of the real estate sector.
    American Capital Agency Corporation (AGNC)
    American Capital Agency Corporation (AGNC) invests in high-quality mortgage-backed securities including pass-through securities and collateralized mortgage obligations guaranteed by a government-sponsored agency, such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (better-known, respectively, as Fannie Mae and Freddie Mac).4
    It also invests in some residential and commercial mortgage-backed securities that are not government-guaranteed.4
    The holdings of the company represent debt that is highly sensitive to changes in market interest rates, making America Capital Agency’s holdings susceptible to interest rate risk. However, management extensively hedges its interest rate risks and regularly rebalances the portfolio.5
    As of April 2020, American Capital Agency Corporation had a dividend yield of 10.7% with an annual dividend of $1.44.6
    Apple Hospitality (APLE)
    Apple Hospitality (APLE) specializes in upscale hotels. One of the largest hospitality-sector REITs, it owns and operates (through property management companies) 233 mostly Marriott and Hilton-branded hotels in urban, suburban and developing markets.7 The company has consistently reinvested a big portion of its cash flows into its portfolio, resulting in high customer satisfaction and stable capital needs.8
    As of March 2020, the company paid an annual dividend of $1.20 dividend, but it has not paid a monthly dividend since (as of May 2020)9
    Bluerock Residential Growth (BRG)
    Bluerock Residential Growth (BRG) is a small-cap trust that specializes in investing and operating multifamily residential communities in growth markets throughout the U.S.10 The current portfolio consists of 53 apartment buildings or complexes in Texas, Florida, Georgia, Washington, Colorado, Arizona, Nevada, Alabama, Tennessee, South Carolina, and North Carolina.11
    Most of the company’s properties have high occupancy rates, above 90%.11 Unlike many REITs, Bluerock often partners with regional property owners and operators in order to benefit from their expertise in local real estate markets.12
    Management has grown the trust aggressively since 2014 and is constantly on the lookout to add more high-quality properties to its portfolio.13
    However, since 2018, Bluerock Residential Growth switched from paying dividends monthly to paying them quarterly. As of May 2020, the company’s dividend yield stood at 10.2%, on an annual dividend of $0.65.14
    EPR Properties (EPR)
    EPR Properties (EPR) is a small-cap growth REIT that specializes in two quite distinct real estate sectors. One is entertainment, performance, and recreation venues such as theaters, theme parks, and casinos. The other is education, specifically private schools, and early childhood education centers.15
    It holds properties in 41 states plus Ontario, Canada.16 EPR Properties typically rents its properties using triple net leases with operational, maintenance, insurance, and tax costs borne by its tenants.17
    Due to its varied business model, the company considerably outperformed the MSCI US REIT Index for the five years ended 2019.18
    As of May 2020, the company paid a $4.59 dividend, and its dividend yield was 15.2%.19
    LTC Properties (LTC)
    LTC Properties, Inc. (LTC) manages a portfolio of senior housing and long-term care facilities, including skilled nursing, assisted living, independent living, and memory care facilities.20 It currently owns 177 properties in 28 states.21
    LTC primarily earns its income by leasing its properties using triple net leases and investing in mortgage loans.22
    As of May 2020, its annual dividend was $2.28 for a yield of 6.33%.23
    Stag Industrial (STAG)
    Stag Industrial (STAG) invests in industrial-use properties, mostly distribution centers and warehouses with some light manufacturing facilities thrown in. It has 450 properties in 38 states.24
    Stag leases its buildings to single tenants, so it doesn’t have to contend with constant turnover as multi-tenant properties like shopping centers and office parks often do.24 It claims a 70% tenant retention rate, with an average lease running nearly five years.25
    As of May 2020, the company paid a $1.44 annual dividend, and its dividend yield was 5.7%.26

    By ANDRIY BLOKHIN Updated May 27, 2020

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  2. Brookfield Says Office Demand Has Increased as Workers Return

    Brookfield Asset Management Inc., one of the world’s biggest real estate investors, is seeing higher demand for office space as workers return to socially-distanced buildings.
    Rather than ditching their skyscraper offices after the pandemic, companies are keen to return to the workplace after spending as long as three months in lockdown, Bruce Flatt, chief executive officer of Brookfield, said at the Bloomberg Invest Global virtual conference on Wednesday.
    “Today we’re leasing greater amounts of space to people than they had before,” Flatt said. “They want to accommodate their people and get them back quickly. They’re increasing their footprints versus taking less.”
    Most companies that Brookfield leases offices to are bringing workers back, said Flatt. The only reason some weren’t was a lack of social distancing space. Brookfield has reopened nearly all of its global offices, he said, with about 70% of London workers returning and around 30% of New York employees.
    Infrastructure Boom
    Brookfield is well-positioned to weather the pandemic. Flatt last month said the company had $46 billion in client commitments for new investments and $15 billion in cash, other financial assets and long-dated credit facilities across its various businesses that remain largely undrawn.
    The company was one of six investors that bought a $10.1 billion stake in Abu Dhabi’s natural-gas pipelines, according to a statement Tuesday. Flatt said the deal was a taste of things to come for global investors.
    The transaction shows “that corporates and governments are going to have and will continue to outsource major amounts of infrastructure spend around the world,” he said. The trend is starting now and will continue “for the next 25 years,” he said.
    In the first quarter, Brookfield altered its strategy to investing in public companies that were trading at a fraction of what it cost to acquire assets directly from the firms. It pumped roughly $2 billion into public equity markets, including repurchasing its own shares and those of its publicly traded subsidiaries.
    The asset manager also recently acquired just over 7% of British Land Co., one of the U.K.’s largest real estate investment trusts.

    Bloomberg
    By Suzy Waite With assistance by Benjamin Robertson, and Jason Kelly
    24‎ de ‎junho‎ de ‎2020‎

    Curtido por 1 pessoa

  3. Trix:
    Estou pensando seriamente em abrir uma conta no BB Américas e em uma corretora no exterior. Qual vc indica e/ou usa?
    Conversando com um colega que usa a “avenida”, disse-me ser interessante investir em ETF sediados fora dos EUA, para não incidir o IR deles, em pesados 30%, nos dividendos.
    Mas como penso em investir também em REITs, tem como fazer da mesma forma? Há REITs de imóveis americanos sediados no exterior ou ETF de Reits fora dos EUA?

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    1. Mr M
      Dê uma olhada nesta corretora : Avenue Securities.
      Se não me engano Cingapura e/ou Xangai isenta de impostos os ativos negociados nessas bolsas. Confirmado isso é pesquisar os REITs e ETFs americanos negociados lá.

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  4. The 4 Best Indexes for Dividends

    In an investing world where you can pick from dozens of different strategies and methodologies for generating returns, dividend investing remains one of the best ways to accumulate wealth over the long term. Companies that pay regular dividends often generate enough income and cash flow to share these profits regularly with investors.

    Key Takeaways
    •Dividend investing provides a steady stream of income, helping weather any short-term fluctuations in the market.
    •Dividend mutual funds and exchange-traded funds (ETFs) are plentiful, but many are benchmarked to indexes that aim to achieve very different objectives.
    •When it comes to picking the best dividend indices, the Dow Jones U.S. Select Dividend Index and S&P Global Dividends Opportunity Index are two fo the top ones.

    While high-growth stocks such as Netflix (NFLX) and Amazon (AMZN) get a lot of attention, dividends still generate a sizable part of an investment’s total return, providing a regular stream of income that should continue despite any short-term fluctuations in the market.

    Dividends are often recognized as coming from large and more well-established companies, but any company that has the cash available on its balance sheet can pay dividends.

    Young or fast-growing companies tend to take any available cash they have and reinvest it back into their businesses to fuel further growth. More mature or conservative companies that are no longer in growth phases often take much of their excess cash flow and give it to shareholders in the form of dividends.

    Retirement investors, in particular, like to target dividend-paying companies because of their typically below-average risk profiles, and because the dividends provide steady flows of income.

    However, not all dividend-oriented investments are the same. Dividend-focused mutual funds and exchange-traded funds (ETFs) are plentiful, but many are benchmarked to indexes that aim to achieve very different objectives.

    Dow Jones U.S. Select Dividend Index
    Established back in 2003, The Dow Jones U.S. Select Dividend Index looks to target 100 dividend-paying stocks screened for factors that include the dividend growth rate, the dividend payout ratio, and the trading volume. The components are then weighted by the dividend yield.

    This index is heavily weighted towards historically higher-yield sectors, such as utilities, which has 29% of the index’s assets as of June 2020, and consumer goods, with 13% of the assets. The top holdings include Qualcomm (QCOM), AT&T (T), and Target Corp (TGT).

    ProShares S&P 500 Dividend Aristocrats Index
    Dividend aristocrats are stocks of companies that have raised their dividends for at least 25 consecutive years. Building a dividend portfolio composed of aristocrats has become a popular investing strategy among income seekers, as it generally provides predictable income along with regular increases.

    The ProShares S&P 500 Dividend Aristocrats Index is an equal-weighted index that typically contains around 40 to 50 names from the S&P 500 that meet the definition of dividend aristocrat. Franklin Resources (BEN), Carrier Global (CARR), and Cintas (CTAS) are among the index’s top holdings as of June 2020.

    NASDAQ U.S. Dividend Achievers Select Index
    The definition of “dividend achiever” is slightly different than that of “dividend aristocrat.” Achievers only require at least a 10-year history of raising dividends instead of 25. Therefore, the universe of investment possibilities for the NASDAQ U.S. Dividend Achievers Select Index is much larger.

    This index, which has been around since 2000, typically consists of over 100 large-cap domestic names from a broad range of industries and sectors. Microsoft, Walmart, and Visa are at the top of the index’s holding list.

    S&P Global Dividends Opportunity Index
    Dividend opportunities exist around the world. The S&P Global Dividends Opportunity Index seeks to encompass roughly 100 high-yielding stocks that meet the criteria of demonstrating profitability, earnings per share (EPS) growth, and liquidity.

    Risk-averse investors should be aware of the composition of this index. As of June 2020, only 33% of assets within this index come from the U.S. The index’s mandate also states that stocks from developed and emerging markets can qualify, making it riskier than the average dividend index.

    By David Dierking – Updated Jun 14, 2020

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  5. Another big mall deal implodes as pandemic shakes retail

    NEW YORK — The nation’s largest mall owner is backing out of a $3.6 billion deal to buy a major rival as the coronavirus pandemic shakes the retail industry.

    Simon Property Group (NYSE: SPG) announced it would buy Taubman in early February, just weeks before the Centers for Disease Control and Prevention announced the first known case of coronavirus in the U.S. Clothing stores and malls nationwide were ordered to close the following month.

    In its legal complaint Wednesday, Simon said that Taubman is uniquely vulnerable as stores reopen because most of its properties are indoor malls “that many consumers will avoid.” Simon also said Taubman broke its contract obligations by taking on more debt during the pandemic rather than cutting costs.

    Taubman plans to fight Simon, calling its legal claims “invalid and without merit.” It plans to go ahead with a shareholder vote on the deal later this month at its headquarters in Bloomfield Hills, Michigan.
    The pandemic has created more havoc in an already stressed retail environment, particularly for malls. Last month, a private equity firm backed out of a deal to buy Victoria’s Secret. That chain had moved aggressively into malls at the direction of its parent company’s founder Les Wexner, who wanted to push lingerie into the mainstream.

    Malls have struggled for years as shopping moved online and consumers grew tired of them. Their plight even inspired a haunting YouTube channel called the Dead Mall Series.
    The coronavirus has delivered a devastating blow to those that remain and also stores with a big mall footprint. J.C. Penney, Neiman Marcus and J.Crew, have all filed for bankruptcy protection this year.
    In malls that have reopened, drinking fountains are disabled or taped off, play areas for kids are closed, and sitting in a food court is done at a distance from other humans.
    Retail consultant Jan Rogers Kniffen believes that within two years, half of the 1,000 malls in the U.S. will either close or be unrecognizable. Before the pandemic, he expected only 300 to close, and that decline would take place over a decade.

    CBL, a Chattanooga, Tennessee, mall operator with 108 properties, warned this month that it may fail.
    On Wednesday, shares of any retail chain with stores in malls plummeted. Kohl’s, Macy’s, The Gap and Abercrombie & Fitch all slumped sharply.

    Simon, based in Indianapolis, owns or has a stake in more than 200 properties in the U.S. as of last year. Taubman Centers owns, manages or leases 26 shopping centres in the U.S. and Asia, including The Mall at Short Hills in New Jersey, and Waterside Shops in Naples, Florida.
    ____
    AP Retail Writer Anne D’Innocenzio in New York contributed to this story.
    Joseph Pisani, The Associated Press
    © Provided by The Canadian Press

    Curtido por 1 pessoa

    1. H&R REIT, whose total assets of approximately $13.4 billion at March 31, 2020 (“H&R” or “the REIT”) (TSX:HR, NYSE: HRB) announces its financial results for the three months ended March 31, 2020.
      .
      .
      .

      Rent Collection

      Rent collection has been a key focus for the REIT during the pandemic, and one where we believe we have performed well while also accommodating the needs of our tenant partners. As of May 14th, 2020, April’s overall rent collection was 85%, with May’s rent collections at 80% as detailed below:

      Tenant Type, Share of Rent, April Collection, May Collection
      Office, 44%, 99%, 99%
      Retail:
      Enclosed malls, 20%, 40%, 30%
      Other, 13%, 88%, 80%
      Retail Total, 33%, 59%, 50%
      Residential, 17%, 97%, 92%
      Industrial, 6%, 98%, 90%
      Total: 100%, 85%, 80%

      Our high-quality, long-term leased office portfolio delivered strong rent collection in April and in May, consistent with the profile of the tenant base, where 87.4% of tenants are investment grade-rated. Rent collection was also strong in our industrial and multi-residential portfolios, reflecting the stronger-than-average credit profile of our tenant base across both of these portfolios.

      The tenants that have experienced the greatest impact in the COVID-19 pandemic have been retailers. Rent collection in our retail portfolio was 59% in April (50% May to date), reflecting a blend of grocery-anchored centres, single tenant and enclosed mall properties. Non-essential stores across the country were closed by government mandates in March and are beginning to reopen in some parts of the country.

      While visibility remains limited as to when operating conditions might return to a more normal state, and government rent assistance programs have yet to become effective in providing significant relief to retailers, we remain committed to working with our tenants and all levels of government to ensure the most timely and efficient resumption of operations, while preserving the safety and security of all stakeholders.

      >>>> Como podem ver os colegas … no mundo todo, os VARIJISTAS sendo MASSACRADOS pelo [sempre ele!!!] GOVERNO!

      Curtido por 1 pessoa

  6. Fortaleza, Brazil: Earn 18% To 20% Return On Your Investment

    Earn 18% To 20% Net From This Coastal Rental? Too Good To Be True?

    A developer in Brazil is projecting what any serious investor (including me) would initially consider to be unrealistic net rental yields of 18% to 20% for his new coastal townhouse development.

    However, stick with me. These returns are extraordinary… but I believe very realistic.

    The market here is just outside Fortaleza, a rapidly expanding coastal resort area. This is already an active tourist destination among Brazilians, but it continues to gain popularity.

    In addition, new direct flights from around the world are creating greater access and stronger international tourism. Air France/KLM recently selected the Fortaleza airport as its regional hub in Northeast Brazil. Traffic from Europe to Fortaleza is expected to increase 40% over the next couple of years as a result.

    I’ve known the developer behind this opportunity for years, and I have been very pleased with his work. He has completed several projects in this Fortaleza area, including a sold-out beachfront lot development I bought into a couple of years ago.

    Now that same developer is building turnkey rental units (in the form of townhouses) inside a master-planned development. The property already has a water park, golf course, hotels, and, of course, a big, long beach… and the local rental management companies are demanding more rentals.

    Demand is way outweighing supply.

    The water park, for example, saw more than 1 million visitors in 2016 for the first time. That’s about a third of the total annual tourist traffic in Fortaleza, an area that’s home to about 3 million people. The number of visitors in 2017 was even higher.

    The fast-increasing tourism figures for “Beach Park” (as this area is known locally) is what’s driving the demand for rentals… and creating the current market forces that are generating those out-of-sight double-digit rental yields.

    The Ins-And-Outs Of This Phenomenal Return
    18% To 20%?! How Are Those Yields Being Achieved? An Analysis…

    When a developer tells me he’s projecting rental returns greater than 12%, I’m skeptical.

    A projection over 15% from a rental property? I hear that, and I walk away laughing.

    However, as I’ve known this developer a while… I know he is serious and well-connected.

    So when he told me about the yields projections for his newest offering, I didn’t walk away. I asked him to support the claim.

    The first statistic he referenced is an important one…

    The current annual occupancy rate for everything in the area is 80%…

    Hotels can see that level of occupancy at the top of a normal market cycle, but short-term rentals don’t usually enjoy that kind of occupancy year-round. Fortaleza, however, is well-positioned for year-round tourism… and, as I said, both local and international tourism figures are expanding.

    That said, the developer didn’t use 80% in his projections. He wanted to be conservative and used 60%.

    So I was on board for the occupancy rate.

    But what about the nightly rental rate? Maybe the projected return is so high because the developer is using an inflated rental rate…

    In fact, he is using average prices from Airbnb. Of course, prices vary depending on the time of year, but the average price per night used for the projections is 500 reais. Current Airbnb prices for comparable listings in the same area range from 300 to 650 reais for the various dates I used as a test. The lower-priced properties were farther from the beach, while highest-priced properties were closest to the beach.

    The investment property here is well situated and close to the beach, and the projected rental rates are accurate…

    The next thing to look at is the total investment amount used when making the projection calculations.

    Looking closely in this case I found that the developer includes closing costs and the cost of furniture when calculating the yield. Most developers ignore these costs, to prop up yield projections.

    However, again, in this case, closing costs and furnishing expenses are accounted for in the projected 18% to 20% return…

    Beach Townhouses For Only US$99K—Financing Available…

    The product has been designed based directly on recommendations from rental managers in the Beach Park area. These people make a living from rentals. They know the market better than anyone.

    So, based on their advice, the developer is building three-bedroom townhouses of 110 square meters designed specifically as short-term rentals in the Beach Park neighborhood.

    All units will have direct, permanent ocean views, and the complex will have its own pool, gym, and sauna. Each unit can also have an optional Jacuzzi on its rooftop.

    Two pre-construction purchase options are available.

    You can pay cash up front in full. In this case, the cost is US$99,000.

    Or you can make a down payment of 24% and then make monthly payments over 24 months to complete the purchase. In this case, the cost is US$110,000.

    The 20% net rental yield is based on the US$99,000 cash price plus the estimated US$5,000 closing costs and a US$15,000 furniture package. This package includes everything needed to set up the property as a short-term rental: appliances, lighting fixtures, curtains, beds, TV, dishes, sheets, towels, etc.

    Easy Cash Flow—This Is A 100% Turnkey Investment

    These townhouses are turnkey and will be fully managed for short-term vacation rentals by a proven rental management company that will take care of everything from marketing and greeting guests to maintenance and cleaning.

    Get in touch to learn more now, here [link não incluído]

    Lief Simon

    Curtido por 1 pessoa

    1. Sério que estão vendendo rendimento de 18 a 20% para os gringos no Brasil !? Esse “developer” tem que ser preso.
      Outra coisa que espanta : casas de frente ao mar por US$ 99,000, ou seja, quase de graça , nosso Real foi jogado na lata de lixo.

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      1. Então … eu acho que a data dessa matéria é de meados de 2015/2016. Nessa época, havia sim o início de um “loteamento” de alto-padrão. Dá uma olhada no empreendimento … “Aquiraz Riviera” e região, por exemplo. É FENOMENAL !!! Tudo listado no Airbnb !!!

        Curtido por 1 pessoa

  7. How Are Mall REITs Trying to Survive?

    From providing tactical support to small business tenants to selling land parcels, mall REITs are looking for ways to stem the bleeding.

    Reacting to the coronavirus-initiated closures of their properties, mall REITs furloughed or laid off employees, slashed executive pay, chopped expenses and scrubbed development projects to staunch the financial bleeding. Yet those immediate measures won’t preserve the lifeblood of mall REITs as they open their doors again.

    Rather, REIT executives are thinking outside the big box in their pursuit of long-term survival strategies.

    “Unfortunately, the challenges continue, and we must take difficult, but necessary steps to ensure CBL is positioned to sustain the impact of the pandemic and generate success in the future,” Stephen Lebovitz, CEO of Chattanooga, Tenn.-based mall REIT CBL Properties & Associates Inc., said in an April 14 news release.

    For certain mall REITs, there’s a heightened urgency in their attempts to recover from the pandemic shutdown. Philadelphia-based mall REIT Pennsylvania Real Estate Trust (PREIT) warns that its survival is in “serious doubt,” while CBL is exploring a restructuring along with a potential Chapter 11 bankruptcy filing.

    At the other end of the spectrum, Indianapolis-based Simon Property Group Inc.—the king of mall REITs—was sitting on a $4.1 billion cash cushion and $4.6 billion in borrowing capacity as of March 31.

    But even financially healthy mall REITs can’t escape pandemic-caused battles with rent collections and retail bankruptcies.

    An analysis by the CoStar Group, a provider of real estate data, shows that some of the largest high-risk retailers occupy a hefty share of mall space across the country. Fourteen of the 20 largest mall tenants are either apparel retailers or department stores, and these 14 tenants occupy almost one-fourth of regional and super regional mall space in the U.S., the analysis shows.

    “Many mall landlords lack the capital to withstand long-term cash flow impairments from store closures and bankruptcies that result from the COVID-19 pandemic,” says Conor Doyle, real estate securities analyst at Plymouth Meeting, Pa.-based CenterSquare Investment Management LLC.

    “For malls that do survive, the necessary redevelopments that were occurring to allow mall landlords to compete with e-commerce and other shopping center options will likely have to be pushed into the future, allowing other retail channels to continue to gain market share,” he adds.

    What follows are some of the approaches that mall REITs are embracing to recover from the pandemic and maintain or grow their market share.

    Supporting small businesses

    In April, PREIT launched an effort to help guarantee a key group of tenants—small businesses—stick around to be able to serve customers and pay rent. PREIT introduced Shop Local pages on all of its mall websites to showcase the e-commerce platforms of its small-business tenants.

    “Our local businesses are among the enterprises hardest hit by this pandemic. Without robust digital marketing budgets, they are at a disadvantage to their national counterparts,” Joseph Coradino, chairman and CEO of PREIT, said in an April 20 news release.

    Columbus, Ohio-based mall REIT Washington Prime Group Inc. went a step further in this regard by creating the Open for Small Business Initiative, which provides tools and education for small businesses—tenants and non-tenants alike.

    Carving out space for different uses

    On a May 12 earnings call, Doug Healey, senior executive vice president of leasing at Santa Monica, Calif.-based Macerich Co., said the mall REIT is fielding inquiries from retailers about adding a second store at a mall or opening a brand-new space in a mall to shed excess inventory. That could be a midterm or perhaps longer-term boost for Macerich properties.

    In that same vein, Washington Prime Group rolled out Fulventory, a proprietary program that enables its tenants to use space at its properties for last-mile fulfilment and BOPIS (buy online and pick up in store), as well as merchandise clearance sales.

    Washington Prime Group predicts adoption of BOPIS across the big-box, department store, fashion, activewear and specialty retail segments will rise from 44 percent in 2016 to 90 percent in 2024.

    “We believe buy-online pickup at the mall is here to stay as more retailers develop capabilities to service them through digital channels. Customers will be able to enjoy the collection of brands and experiences the mall offers on the go,” Coradino said during PREIT’s May 21 earnings call.

    Doyle, the CenterSquare analyst, doubts this approach is workable over the long term.

    “While these are creative ways to utilize the space for the time being, the fact remains that industrial rents are far below mall rents and the idea of renewing a mall lease in order to boost e-commerce fulfillment capabilities is not in the money for the majority of malls’ gross leasable area,” he says.

    Selling land for non-retail purposes

    Some mall REITs are eyeing their land holdings as a vehicle for generating cash. For instance, PREIT said in May that it had executed two deals totaling $3.75 million to sell parcels for hotel projects.

    In some cases, the value of mall real estate rises with a hotel or multifamily property on the site compared with a department store or massive amounts of parking, Doyle says.

    “I do believe that certain mall landlords own valuable real estate and that malls will continue to exist in the future,” he notes. “But they will undergo significant transformations over the coming years in order to maximize the value of the real estate. It is unlikely the mall of future looks anything like the mall of the past.”

    Buying properties owned by rivals

    Michael Sury is a lecturer in finance at the University of Texas at Austin’s McCombs School of Business and managing director of the school’s Center for Analytics. He says opportunistic investors like Simon Property Group might be able to snap up retail portfolios at substantial discounts.

    “Of course, cash is a scarce resource today. Whether they can issue securities and make it a positive NPV investment is an analysis that is worth doing at these prices,” Sury says.

    Some mall REITs might even be ripe for a takeover. After Simon announced in February that it was paying about $3.6 billion to purchase a competitor, Bloomfield Hills, Mich.-based Taubman Centers Inc., some industry observers speculated that Macerich could be the next takeover target. Executives at Simon aren’t tipping their hand about whether, in light of the pandemic, the Taubman deal will be called off.

    Class-B and class-C malls could be particularly easy pickings for real estate investors, though questions remain about whether anyone will want them. While class-A malls will likely survive the pandemic, lower tier properties might “struggle to be relevant at all,” says Brian Jones, managing director of New York City-based investment management firm Neuberger Berman Group LLC. Retail bankruptcies will not only lead to the loss of rental revenue from anchor tenants at class-B and class-C malls, they could also trigger co-tenancy clauses that allow other tenants to leave, he notes.

    Under those circumstances, Jones envisions some class-B and class-C malls shuttering permanently or being repurposed as mixed-use developments or distribution centers.

    Tackling e-commerce competition

    It will be incumbent upon mall owners to double down on attracting shoppers since some customer traffic likely has been “permanently diverted” from bricks-and-mortar stores to on-line settings during the pandemic, says Sury.

    A survey commissioned by UPS-owned Ware2Go, a fulfillment platform, found that 87 percent of American consumers were shopping online, and that 64 percent had replaced weekly shopping trips with online ordering. More than half (55 percent) said they’d purchased from online retailers that they’d never patronized.

    “Those malls whose tenants are predominantly cyclical, low-margin retailers will need to rethink their portfolios as attrition rates rise and create vacancies that need to be filled,” Sury says. “Operators need to return to basic principles and consider how best to create diversified portfolios with synergies that can retain sustained traffic.”

    Against that backdrop, malls would have to continue to concentrate on fostering “experiential” environments, like restaurants and movie theaters, that can’t be replicated online, experts say.

    Doyle points out, though, that the pandemic has not only accelerated the demise of several big-name retailers, it has also hampered experiential tenants, including restaurants and entertainment venues. Therefore, he adds, some malls “may need to go in another direction.”

    John Egan | Jun 01, 2020

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  8. REIT Earnings Declined 9% in First Quarter on COVID-19 Issues

    REIT earnings were impacted by the COVID-19 crisis in the first quarter, with funds from operation (FFO) declining 9.0% from the prior quarter, to $15.0 billion, according to the Nareit T-Tracker®. The effects of the pandemic varied widely across the property sectors. FFO for the lodging/resorts sector declined 67.2% and accounted for half of the total decline in REIT earnings. FFO of regional malls experienced an 11.6% decline. Industrial REITs, on the other hand, saw earnings rise 21.7% from the prior quarter, and single family home REITs posted a 7.0% increase.

    Social distancing measures and the related closures of many businesses intensified during the month of April, and second quarter results are likely to deteriorate further from the first quarter. REITs entered the crisis with a strong financial position, however, that is likely to help them weather the challenges ahead. REITs raised $440 billion in equity capital from 2009 through 2019, which helped reduce their leverage ratios ten full percentage points, from a peak of 58.3% in 2008 to 48.3% in 2017. Leverage has edged a bit higher since then, to 50.5% in the first quarter. REITs extended the average maturity of their debt, from less than 60 months in 2008 to 82 months in the first quarter. By relying less heavily on debt, and lengthening and staggering debt maturities, many REITs will face fewer pressures to refinance debt obligations during the current period.

    Operating performance has been maintained through the early phases of this crisis, in part because REITs generally hold higher quality properties with investment grade tenants. Occupancy rates remain high (chart 3), and the vast majority of tenants continue to make timely rent payments.

    5/21/2020 | By Calvin Schnure

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    1. RECEITA cai uns 10% … enquanrto que a COTAÇÃO despencou cerca de 50% (5x a receita), no dia de maior pâniquito; já se recuperou cerca de metade desta queda até o momento, ou seja, cai na realidade no momento apenas 25%. (-2.5X a receita). Ou seja … quem vendeu no “panico” de ferrou. Quem comprou mais, vai se dar muito bem. Quem não fez nada … evitou o stress.

      Curtido por 1 pessoa

  9. Most real estate investment trusts are still getting their rent, except in the retail sector
    Published Tue, May 19 202011:06 AM EDTUpdated Wed, May 20 20201:55 PM EDT

    Diana Olick

    Industrial REIT rent collection in May was nearly 96% of a typical month and down just 3 percentage points from April.
    Shopping center REITs saw a slight improvement over April but still reported just 48% of typical rents collected in May.

    The economic effects of the coronavirus outbreak continue to roil real estate markets, but properties owned by real estate investment trusts are still getting most of their rent. The glaring exception is retail.
    The level of rent collection by U.S. REITs was about the same in May as it was in April, according to a survey just released by Nareit, an industry trade group. The survey covered six commercial real estate property sectors and compared the rents collected in May with those of a typical month before the pandemic.

    “The survey results suggest that, while REIT tenants in some hard-hit sectors continue to struggle, their ability to pay May rent didn’t appreciably worsen, despite the widespread business closings in April,” said John Worth, executive vice president of research at Nareit .
    Industrial REITs, which include warehouses, were already seeing growing demand as retail moved online, and that demand has increased due to the pandemic. Food shopping has seen a significant shift online, and with most retail stores closed, demand from companies like Amazon is even higher. Industrial REIT rent collection in May was nearly 96% of a typical month and down just 3 percentage points from April.
    Apartment REIT rent collections were also strong in May, remaining at 95% of a typical month and basically flat with April collections. Apartment landlords responding said they granted rent deferrals for 3% of rent owed. Single-family rentals and lower-income apartments not owned by REITs have not fared as well.
    “The continued ability of apartment renters to meet their rent obligations reflects both the federal government stimulus, including enhanced unemployment benefits, and the fact that REIT apartments generally house individuals who are less likely to have been affected by layoffs to date during this crisis,” Worth said.
    The office sector, which has been largely shuttered for the last two months, also paid the rent – or at least 92% of a typical month and down just 1 percentage point from April collections.

    Retail is another story. The sector is divided into free-standing retail, which are mostly convenience stores, restaurants and pharmacies, shopping centers, which are usually anchored by a supermarket, and regional malls.
    Free-standing retail was about the same in May as April, with 70% of typical rents paid, although rent deferrals were granted for nearly 18% of payments. A majority of businesses in free-standing retail, like grocery and drug stores have helped stabilize the sector, as they are deemed essential businesses and can remain open.
    Shopping center REITs saw a slight improvement over April but still reported just 48% of typical rents collected in May. Mall REITs did not respond to the survey enough for conclusive reporting, but malls have been shuttered entirely, and major retail anchors like Neiman Marcus and J.C. Penney have filed for bankruptcy.

    REITs that responded to the Nareit survey represented 63% of the equity market capitalization of the FTSE Nareit All REITs Index. REITs in the index collectively own and operate between 10% and 20% of investment-grade commercial real estate in the U.S.
    Correction: This story was revised to correct that J.C. Penney has already filed for bankruptcy protection and to delete an incorrect reference to Nordstrom. It is not exploring bankruptcy.

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    1. Ou seja … NADA mudou, exceto para os varejistas.

      Mesmo assim .. o paniquito da correria da venda foi … geral! Não é que a renda seja variável; o que é variável é o HUMOR do mercado; sem ou com poucos fundamentos. Lamentável.

      Curtido por 1 pessoa

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