On 8/1/13, Boston Properties, Inc.’s 5.25% Series B Cumulative Redeemable Preferred Stock (NYSE: BXP.PRB) will trade ex-dividend, for its quarterly dividend of $0.3281, payable on 8/15/13. As a percentage of BXP.PRB’s recent share price of $24.38, this dividend works out to approximately 1.35%, so look for shares of BXP.PRB to trade 1.35% lower ? all else being equal ? when BXP.PRB shares open for trading on 8/1/13. On an annualized basis, the current yield is approximately 5.39%, which compares to an average yield of 6.65% in the “Real Estate” preferred stock category, according to Preferred Stock Channel.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen » …read more
Gene J. Puskar/APIn this Tuesday, July 23, 2013, photo, a home is for sale in Mt. Lebanon, Pa.
By CHRISTOPHER S. RUGABER
WASHINGTON – The number of Americans who signed contracts to buy homes dipped in June from a six-year high in May, a sign that completed sales could stabilize in the next month or two.
The National Association of Realtors says its seasonally adjusted index for pending home sales ticked down 0.4 percent to 110.9 in June. The May reading was revised lower by a percentage point to 111.3, but it was still the highest since December 2006.
The slight decline suggests higher mortgage rates may be starting to slow sales. Still, signed contracts are 10.9 percent higher than they were a year ago. There is generally a one- to two-month lag between a signed contract and a completed sale.
WASHINGTON — Sales of new U.S. single-family homes vaulted to a five-year high in June, showing little signs of slowing in the face of higher mortgage rates.
The Commerce Department said Wednesday sales increased 8.3 percent to a seasonally adjusted annual rate of 497,000 units, the highest level since May 2008.
Sales increased 1.3 percent in May.
Economists polled by Reuters had expected new home sales to rise to a 482,000-unit rate last month.
Compared with June last year, sales were up 38.1 percent, the largest increase since January 1992.
The third straight month of gains in new home sales, which are measured when contracts are signed, suggested the housing market was gaining more muscle and should allay concerns that higher mortgage rates could slow down momentum.
Mortgage rates have spiked in anticipation of the U.S. Federal Reserve starting to taper its generous monetary stimulus later this year. Rates still remain low and Fed Chairman Ben Bernanke last week expressed optimism the housing market recovery would continue.
Last month, the inventory of new homes on the market increased 1.3 percent to 161,000, the highest since August 2011, as builders continue to ramp up production to meet the growing demand.
Still, supply remains tight, putting upward pressure on prices. The median new home price increased 7.4 percent from a year ago.
At June’s sales pace it would take 3.9 months to clear the houses on the market, down from 4.2 months in May. A supply of 6.0 months is normally considered as a healthy balance between supply and demand.
Sales last month rose in three regions, but fell in the Midwest.
On 7/17/13, Urstadt Biddle Properties Inc’s 7.125% Series F Cumulative Redeemable Preferred Stock (NYSE: UBP.PRF) will trade ex-dividend, for its quarterly dividend of $0.4453, payable on 7/31/13. As a percentage of UBP.PRF’s recent share price of $26.19, this dividend works out to approximately 1.70%, so look for shares of UBP.PRF to trade 1.70% lower ? all else being equal ? when UBP.PRF shares open for trading on 7/17/13. On an annualized basis, the current yield is approximately 6.76%, which compares to an average yield of 6.61% in the “Real Estate” preferred stock category, according to Preferred Stock Channel.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen » …read more
On 7/17/13, Gladstone Commercial Corp’s 7.50% Series B Cumulative Redeemable Preferred Stock (NASD: GOODO) will trade ex-dividend, for its monthly dividend of $0.1562, payable on 7/31/13. As a percentage of GOODO’s recent share price of $25.26, this dividend works out to approximately 0.62%, so look for shares of GOODO to trade 0.62% lower ? all else being equal ? when GOODO shares open for trading on 7/17/13. On an annualized basis, the current yield is approximately 7.42%, which compares to an average yield of 6.61% in the “Real Estate” preferred stock category, according to Preferred Stock Channel.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen » …read more
Unexpectedly large quarterly profits at JPMorgan and Wells Fargo hide a more worrisome forecast for the rest of the year for many U.S. banks. Things could get worse before they get any better.
Wells Fargo’s (WFC) profit was buoyed in the second quarter by consumers rushing to refinance their mortgages and buy new homes, driven by record low interest rates and a recovering housing market. JPMorgan Chase’s (JPM) mortgage lending helped the bank for much of 2012, and second-quarter results this year were by some measures strong too — it made more loans, even if its pretax profits from lending fell 37 percent.
But mortgage lending is likely to be less of a support for banks going forward, as the U.S. Federal Reserve has started talking about tapering off its massive bond-buying program and borrowing rates for home loans have jumped. Thirty-year mortgage rates rose to 4.58 percent at the end of the second quarter, up 0.82 percentage point from the first quarter.
Executives from both banks, which between them make one in three U.S. home loans, said Friday that mortgage lending volumes would decline in the coming months and so profits from the business would fall. JPMorgan Chief Financial Officer Marianne Lake said rising mortgage rates could slash volume by 30 percent to 40 percent. That would result in a “dramatic reduction in profits” in the business, JPMorgan Chief Executive Officer Jamie Dimon said.
At the same time economic growth has not ramped up enough for the rest of these banks’ businesses — such as small business loans and credit cards — to make up for the loss of that income. There may be a lull between the drop-off in mortgage lending and the boost to other forms of revenue from an improving economy and higher long-term interest rates.
“If the economy is getting stronger, it’s not manifesting itself in terms of balance sheet growth of the banks,” said Christopher Mutascio, a banking analyst at Keefe, Bruyette & Woods. “Mortgage headwinds are a bit more instantaneous, and the pick-up in the other business lines may take some time.”
A more complete outlook for the banking industry will emerge next week when both Citigroup Inc and Bank of America report their earnings.
‘No Growth’ in The Mortgage Business
The looming problem isn’t lost on the banks and could lead to further cost cutting as they try to bridge the gap.
JPMorgan’s Lake said depending on market conditions the bank could accelerate its previously announced cost-cutting targets. In February, the largest U.S. bank had said it planned to cut 17,000 jobs by the end of 2014, or roughly 6.6 percent of its workforce. The job cuts were largely targeted at areas such as mortgage …read more
My son has a contract for a short sale scheduled to cloes the end of April. Woman living in the house advised today thAT she will not move out as she has not found a place that is suitable for her and her two children. I believe she is divorced – but husband also signed the contract. Real Estate agent advised closing and allowing use of house. Agent also said we really can’t contact the bank to let them know of the seller’s intentio n not to move out. What options does he have? Can he refuse to close while she is living there (then mayube the bank will pressure her to get out)?
By My Say, Contributor The following guest post is by David Drake, founder and chairman of LDJ Capital, a New York City private-equity firm, and of The Soho Loft, a global financial media company with divisions in Conference & Expo, Publishing, and Consulting. Drake has spent 15+ years working with general partners, and with institutional and multi-family office limited partners, in real-estate-focused funds and fund of funds.
LOS ANGELES — The number of U.S. homes repossessed by lenders last month fell to the lowest level in more than five years, the latest evidence that the nation’s foreclosure crisis is abating amid an improving housing market.
While some states still saw increases in homes taken back by banks, nationally home repossessions fell 3 percent in March from the previous month and were down 21 percent from a year earlier, foreclosure listing firm RealtyTrac Inc. said Thursday.
Thirty-four states posted annual declines in completed foreclosures. Among those bucking that trend: Arkansas, Maryland, Washington and Pennsylvania.
All told, lenders repossessed 43,597 homes last month, the lowest level since September 2007.
At the current monthly pace, completed foreclosures will total roughly 550,000 this year, down from 671,000 last year, RealtyTrac said.
An uptick in homes that entered the foreclosure process last month, however, may end up pushing that total to 600,000, said Daren Blomquist, a vice president at RealtyTrac.
Several factors are contributing to the decline in completed foreclosures: Steady job growth and ultra-low mortgage rates are helping the once-battered housing market recover, driving demand for homes and prices upward.
Higher home values help restore equity to homeowners, which can help those at risk of foreclosure by improving their chances of refinancing their mortgage to a lower payment or place them in a better position to sell their home.
Meanwhile, states like California, Nevada and others have passed laws to increase homeowners’ protections from foreclosure. Those laws have effectively delayed the pace of homes entering the foreclosure process, which has helped to thin the pipeline of completed foreclosures in those states.
Even so, the number of foreclosure starts, or homes that entered the foreclosure process, edged higher for the second month in a row in March.
Foreclosure starts rose 2 percent from February to 73,113. That’s still down 28 percent from March last year, the firm said.
Twelve states, including New York, Maryland and Washington saw annual increases in foreclosure starts last month.
During the housing downturn, about half of the homes that entered the foreclosure process ended up as bank-owned homes that could potentially to be sold at a sharp discount, hurting the value of nearby homes.
But with the housing market apparently on a sustained, if gradual, turnaround path, it’s more likely that a home entering the foreclosure process now will be able to avoid being lost to foreclosure, Blomquist said.
“A lot of these won’t end up as vacant bank-owned homes, dragging down the market,” he said. “These foreclosures are happening in the context of a housing market that’s recovering. They’re not a sign that the housing market is going downhill again.”
Michelle A. (Shelly) Gillis (Photo: Business Wire)
Prior to this role, Ms. Gillis served as Vice President overseeing Human Resources. Since joining the Company in 2004, she held various senior human resource management positions. Previously, Ms. Gillis was a Vice President and Senior HR Business Partner of Fifth Third Bank.
Ms. Gillis holds a Master of Arts in Labor and Employment Relations from the University of Cincinnati and has earned the Senior Professional in Human Resources (SPHR) designation. Ms. Gillis currently serves as a mentor at Oyler Elementary through the Literacy Network of Greater Cincinnati “Cincinnati Reads” Program and is a former member of the Seton High School Board of Trustees.
About American Financial Group, Inc.
American Financial Group is an insurance holding company, based in Cincinnati, Ohio with assets in excess of $35 billion. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of fixed and fixed-indexed annuities in the education, bank and individual markets. Great American Insurance Group‘s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
NEW YORK–(BUSINESS WIRE)– KKR today announced that affiliates and clients of KKR, including KKR Financial Holdings LLC (“KFN”) (NYS: KFN) , in partnership with Colonie Pacific, acquired Colonie Center (“Colonie” or “the Center”). Financial terms of the transaction were not disclosed.
Colonie is a 1.3 million square foot super-regional mall with over 113 stores that sit on 91 acres in Albany, New York. The Center, located directly off of I-87 at the intersection of Wolf Road and Central Avenue where an average of 117,000 vehicles pass daily, benefits from being in a high-traffic area and within two miles of the University at Albany. The property generates an estimated $245 million in retail sales, including anchors with specialty retail stores producing an estimated $400 per square foot.
Anchored by Macy’s, Boscov’s and Sears, the mall features a strong line-up of national retailers, including Aeropostale, American Eagle, Christmas Tree Shops, Express, Sephora and Victoria’s Secret. Colonie also has a 13-screen Regal Cinemas and a Whole Foods that is anticipated to open in 2014.
In 2007, Colonie Center underwent a significant renovation that incorporated a “lifestyle” retail component and an improved streetscape and attracted national destination tenants such as L.L. Bean, P.F. Chang’s and Cheesecake Factory.
KKR and Colonie Pacific, a partnership between Pacific Retail Capital Partners, Collarmele Partners and Peter Fair (Continuum Partners), plan to make additional capital investments and will also focus on attracting new tenants to the market.
Ralph Rosenberg, a Member of KKR and Head of the firm’s Real Estate group, stated: “Colonie is an institutional-quality asset with tailwinds from a significant recent renovation. With additional investment and a revamped leasing strategy, Colonie will be an even more attractive home for current and prospective retailers in Albany. The transition in ownership will be seamless for shoppers, and our goal is to make the shopping experience even better than it is today.”
Colonie is KKR‘s third retail real estate investment since 2011 and ninth overall. KKR‘s real estate investment team seeks to partner with real estate owners, lenders, operators and developers to provide flexible capital to respond to transaction-specific needs, including the outright purchase or financing of existing assets or companies and the funding of future development or acquisition opportunities.
Kirkland & Ellis LLP served as legal Counsel to KKR.
From an established homebuilder going public to the leading used car retailer slamming on the brakes long enough to announce quarterly results, there will be plenty of news waiting to break in the coming days. Let’s go over some of the items that will help shape the week that lies ahead on Wall Street.
1. Home IPO, Sweet Home IPO: Unless you’ve been sleeping under a rock, you’re probably aware that residential real estate has bounced back in a major way. Prices are inching higher, and available inventory is thinning out.
If you are sleeping under said rock, by the way, at least make sure it has central air, indoor plumbing, and room for a pool.
As homebuilders see their financials and share prices improve, privately held developers now want in on the action. TRI Point Homes (TPH) went public earlier this year, and this week it will be Taylor Morrison Home hanging the “Open House” sign on its IPO.
Taylor Morrison Home is hoping to raise roughly $500 million as it offers 23.8 million shares priced at $20 to $22 apiece. The stock should price on Tuesday for this developer that happens to be one of country’s 10 largest homebuilders. Taylor Morrison Home should then begin trading on Wednesday.
2. Facebook Calls an Audible: Facebook (FB) unveiled a new platform for Android devices last week, and Facebook Home makes its debut on Friday.
The new program will run on some of the latest Android wireless devices, aiming to make the smartphone experience more about people than apps.
Phones with Facebook Home installed will boost up to a screen where Facebook notifications are front and center with the latest photos uploaded by friends serving as a background. It’s more impressive than it sounds, and more importantly it’s reversible — it’s just a matter of uninstalling the program.
A bolder move by Facebook — HTC First — will also hit the market Friday. This is what many in the media are now calling the Facebook Phone since it’s optimized for the new application. Even if the phone itself doesn’t sell well, the future of Facebook Home can still be bright.
3. Good Buy, Ruby Tuesday?: The climate for casual dining is challenging. The end of the payroll tax stimulus is giving diners less money to eat out. It’s certainly not helping that hungry customers are choosing “fast casual” places that provide quality food quickly at lower price points and without the tipping rite.
Ruby Tuesday (RT) has been a laggard, and a new CEO was brought in late last year to attempt a turnaround. The new helmsman has shed …read more
On Thursday, the Consumer Financial Protection Bureau filed complaints against four mortgage insurers who the CFPB claimed had paid kickbacks to mortgage lenders. Mortgage insurance is often required by mortgage lenders when customers are unable to make a 20 percent down payment on a home mortgage. Insurance protects the lender from a customer defaulting on their mortgage, but it also adds to the borrower’s overall monthly payments.
Lenders, rather than borrowers, typically select the mortgage insurer. Through the arrangement, lenders were able to send business to insurers that then funneled millions of dollars back to the lenders over the span of 10 years.
The CFPB found the arrangement was in violation of the Real Estate Settlement Procedures Act of 1974, which makes kickbacks in real estate transactions illegal. The Dodd-Frank Act moved enforcement of the old law to the new CFPB.
Because the practice targets homeowners with little equity, the CFPB says that inflated costs as a result of illegal kickbacks can be devastating, and increase the chances the homeowners will default on their mortgages.
“Illegal kickbacks distort markets and can inflate the financial burden of homeownership for consumers,” said CFPB Director Richard Cordray in a press release. “We believe these mortgage insurance companies funneled millions of dollars to mortgage lenders for well over a decade.”
The four companies involved in the settlement are Genworth Mortgage Insurance Corporation, based in Richmond, Virginia; the Greensboro, N.C.-based United Guaranty Corporation; Radian Guaranty of Philadelphia; and Mortgage Guaranty Insurance Corporation headquartered in Milwaukee.
The complaint against the mortgage insurers and lenders in regards to kickbacks calls for a combined penalty of $15.4 million, an end to the practice of kickbacks, and ongoing compliance monitoring.
Lenders, You’re Clearly on Notice
This isn’t the first time the CFPB has tackled predatory mortgage practices.
In January, the agency issued new rules to ban predatory lending to high-risk individuals, including interest-only and no-documentation loans. The rules included a caveat that loan payments be no more than 43 percent of a borrower’s monthly income.
With stocks hovering around all-time highs, many are wondering if equities are the next great bubble getting ready to burst. But stocks aren’t the only things that look frothy: There are a lot of other asset classes that sure look like bubbles.
We’ve compiled a list of the assets that analysts now believe are flashing the warning signs of over-inflation.
On 4/3/13, Saul Centers, Inc.’s 8% Series A Cumulative Redeemable Preferred Stock (NYSE: BFS.PRA) will trade ex-dividend, for its quarterly dividend of $0.50, payable on 4/15/13. As a percentage of BFS.PRA‘s recent share price of $26.00, this dividend works out to approximately 1.92%, so look for shares of BFS.PRA to trade 1.92% lower ? all else being equal ? when BFS.PRA shares open for trading on 4/3/13. On an annualized basis, the current yield is approximately 7.70%, which compares to an average yield of 6.59% in the “Real Estate” preferred stock category, according to Preferred Stock Channel.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen » …read more Source: FULL ARTICLE at Forbes Markets
On 4/2/13, CapLease Inc’s 8.125% Series A Cumulative Redeemable Preferred Stock (NYSE: LSE.PRA) will trade ex-dividend, for its quarterly dividend of $0.5078, payable on 4/15/13. As a percentage of LSE.PRA‘s recent share price of $25.61, this dividend works out to approximately 1.98%, so look for shares of LSE.PRA to trade 1.98% lower ? all else being equal ? when LSE.PRA shares open for trading on 4/2/13. On an annualized basis, the current yield is approximately 7.94%, which compares to an average yield of 6.59% in the “Real Estate” preferred stock category, according to Preferred Stock Channel.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen » …read more Source: FULL ARTICLE at Forbes Markets
On 4/2/13, CapLease Inc’s 8.375% Series B Cumulative Redeemable Preferred Stock (NYSE: LSE.PRB) will trade ex-dividend, for its quarterly dividend of $0.5234, payable on 4/15/13. As a percentage of LSE.PRB‘s recent share price of $27.27, this dividend works out to approximately 1.92%, so look for shares of LSE.PRB to trade 1.92% lower ? all else being equal ? when LSE.PRB shares open for trading on 4/2/13. On an annualized basis, the current yield is approximately 7.75%, which compares to an average yield of 6.59% in the “Real Estate” preferred stock category, according to Preferred Stock Channel.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen » …read more Source: FULL ARTICLE at Forbes Markets
Mr. Murn will oversee operations, investments and development for WRIT‘s 11-property, 2,540 unit residential portfolio. His local real estate career spans more than 20 years, serving most recently as Director of Development at The Tower Companies, where he was responsible for prominent metro DC area assets and projects including The Blairs, White Flint Mall, and Tower Oaks. Prior to Tower, Mr. Murn served as Vice President of Multifamily Development with Kettler, Inc. Previously, Mr. Murn was Director of Acquisitions & Development – Northeast Investment Group with Archstone-Smith Trust and Director of Capital Markets at Charles E. Smith Residential Realty, Inc. Mr. Murn began his professional career as a commercial real estate banker in the Washington metro area. He holds a Master of Science in Real Estate from Johns Hopkins University and a Master of Business Administration from Loyola College. Mr. Murn is an active member of the Urban Land Institute and Johns Hopkins Real Estate Forum.
“We are excited to welcome Ed Murn to WRIT. He comes with extensive multifamily operational and investment experience from The Tower Companies and Kettler, Inc., two exceptional DC real estate firms, making him an excellent addition to our team as we look to expand our residential portfolio. This addition, along with our recent hiring of Paul Weinschenk to head up our Retail Division, demonstrates our commitment to maximizing the growth potential of our core residential and retail sectors,” said George F. “Skip” McKenzie, President and Chief Executive Officer of WRIT.
WRIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metro region. WRIT owns a diversified portfolio of 69 properties totaling approximately 9 million square feet of commercial space and 2,540 residential units, and land held for development. These 69 properties consist of 25 office properties, 17 medical office properties, 16 retail centers and 11 multifamily properties. WRIT shares are publicly traded on the New York Stock Exchange (NYS: …read more Source: FULL ARTICLE at DailyFinance
By MarketNewsVideo In trading on Monday, real estate shares were relative leaders, up on the day by about 2.3%. Leading the group were shares of China Housing & Land Development (CHLN), up about 28% and shares of China HGS Real Estate (HGSH) up about 9.7% on the day. …read more Source: FULL ARTICLE at Forbes Markets
Are Fannie Mae and Freddie Mac really still safe from the bankruptcy chamber? 24/7 Wall St. is looking for a reality check here and we find it surprising that the giant moves here have hardly taken on the attention deserved for such a dire situation. Fannie Mae (FNM) and Federal Home Loan Mortgage Corporation (FMCC) are both surging to new 52-week highs and it may be an instance where this is simply the pen being mightier than the sword.
The Wall Street Journal previously brought attention to an SEC filing from last Thursday showing that Fannie Mae would delay its annual report because it needed more time to evaluate whether or not it could recapture some of its valuation allowance for deferred tax assets as of the end of 2012. It is no small sum either: $64.1 billion. That being said, traders, investors and speculators are all going to be paying close attention here.
As a reminder, both Fannie Mae and Freddie Mac remain under government conservatorship. They are mathematically bankrupt, but that is a different story. It is also hard to call companies bankrupt when their shares are up so much.
Fannie Mae shares are up a whopping 43% at $0.7468 on more than 66 million shares. Federal Home Loan Mortgage Corporation (FMCC) shares are up 38% at $0.715 on about 30 million shares.
It is hard to imagine this being possible, but technically these companies might be eligible to get listed on proper non-OTC exchanges if there is another day of gains like this. Of course those share prices would have to remain above the $1.00 for 30 to 45 days, but that is another matter.
It seems odd to see that MBIA Inc. (NYSE: MBI) is down almost 4% at $11.35 after runs like this.
Filed under: 24/7 Wall St. Wire, Accounting, Active Trader, Annual Report, Banking & Finance, Cult Stock, Earnings, Economy, Housing Tagged: FMCC, FNMA, MBI
