✂️ Blackstone Cuts Amid CRE Struggles
Deep slashes caused by turbulent market.
The commercial real estate market is in a tough spot right now, with corporate bankruptcies hitting their highest levels since 2010.
Businesses are struggling to keep up with high borrowing costs and limited liquidity, and it's making a big mess in the CRE sector.
Adding to the chaos, Blackstone Mortgage Trust just cut its dividend by 19%.
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With rising interest rates and property values taking a hit, Blackstone had to make some tough decisions to stay afloat.
It's a clear sign that even the big players are feeling the pinch and adjusting their strategies to survive the crash in valuations.
Meanwhile, New York Community Bank is facing its own set of problems with financial losses stacking up for the second quarter in a row.
Deutsche Bank is also grappling with increased loan losses in its U.S. portfolio, driven by a sluggish recovery in the real estate market.
In this edition of the AltReports:
😱 CRE Crisis
💔 Dividend Drop
🔻 Bank Bust
📉 Deutsche Declines
💣 Property Plunge
Video of the Week: The Real Estate Cliff Could Break Everything
Chart of the Week: Distressed Multifamily Debt Surges in Q2 2024
Podcast of the Week: Housing Market's "Super Bubble" is Over!
CRE Gets Strangled, Corporate Bankruptcies Highest since 2010
Commercial real estate is in a chokehold, thanks to sky-high borrowing costs and liquidity issues.
Corporate bankruptcies are peaking like it's 2010 all over again.
Some sectors are getting a free pass, while CRE is gasping for air.
Blackstone Mortgage REIT Cuts Dividend As Commercial Property Stress Mounts
Blackstone Mortgage Trust just threw its investors under the bus, slashing dividends by 19% because the commercial property sector is a hot mess.
Mortgage repayments are shakier than a Jenga tower, and CEO Katie Keenan is in full damage control mode.
The whole REIT gang is feeling the heat, and investors are left holding the bag.
NYCB's CRE Losses Skyrocket Amid New Leaders' Review Of Loan Book
New York Community Bank (NYCB) is taking it on the chin for the second quarter in a row, thanks to higher deposit costs and the Fed’s relentless rate hikes. Their multifamily loan focus in NYC—a market that's as stable as a house of cards—didn't help. CEO Thomas Cangemi blames the cutthroat deposit competition. Even with these hits, the bank's sticking to its guns, focusing on cost management and keeping liquidity in check. Their game plan? Technology and branch optimization. It's like rearranging deck chairs on the Titanic, but hey, they’re optimistic.
Deutsche Bank’s U.S. Loan Losses Tick Up Amid Delay In Real Estate Recovery
Deutsche Bank’s U.S. operations are bleeding cash thanks to a real estate market recovery that's taking its sweet time. They’re seeing rising loan loss provisions, which means their bottom line is getting smacked. Office properties with high vacancy rates and evolving work habits are the main culprits. Q3 results? Not pretty, with credit losses dragging profits down. Despite the setbacks, Deutsche is trying to play it cool, managing loan exposure with the caution of a bomb squad. They’re staying hopeful, but it’s a bumpy road ahead.
£380M Wiped From Value Of Walkie Talkie Building As Refinancing Looms
London's Walkie Talkie building just got a £380M haircut, now worth a measly £950M, down from its £1.3B glory days in 2017. Blame reduced office demand and climbing interest rates for this financial faceplant. Landmark London Asset Management has a fun refinancing challenge ahead with a £635M loan maturing next year, costing them £25M annually. Vacancy rates skyrocketed from 1% to 12%, making this building the poster child for CRE woes. The pandemic and hybrid work models are the gifts that keep on giving in this commercial real estate nightmare.