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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'Winter is coming' for office space stocks, top real estate investor Jonathan Litt warnsJonathan Litt, Land and Buildings Founder & CIO, joins 'Fast Money' to discuss why he says more trouble is on the horizon for commercial real estate stocks.
Persons: Jonathan Litt
Five hedge funds shared five trading ideas on global property markets, adding that they cannot reveal trading positions for regulatory reasons. CM REITs are companies that own mortgages of multi-family residential homes as well as commercial real estate loans. Cell phone data Litt bought to research a REIT run by Alexandria Real Estate Equities (ARE.N), showed that buildings which that were supposed to be almost fully occupied were only half full. Alexandria Real Estate responded pointing to public filings which said that it was the advancement of science and related intellectual property in Alexandria’s Labspace buildings, and not employee foot traffic that drove its demand for space. But Litt believes that the shift away from office working will also hurt life and sciences real estate, generally.
Persons: Jonathan Mizrachi, CMBSs, David Amaryan, Ben Hunsaker, Hunsaker, Jonathan Litt, Litt, ANSON, Moez Kassam, Vistry, Kassam, Nell Mackenzie, Dhara Ranasinghe, Alison Williams Organizations: Property, Capital, Beach, Beach Point Capital Management, REITs, Alexandria Real, Reuters, Vistry, Thomson Locations: York, Russia, Russia's, Ukraine, Armenia, Beach Point, Alexandria, Alexandria’s, London, Carolina, New York
Office landlord offers glimpse of what’s to come
  + stars: | 2023-07-24 | by ( ) www.reuters.com   time to read: +2 min
NEW YORK, July 24 (Reuters Breakingviews) - Piedmont Office Realty Trust (PDM.N) is sifting through the rubble. The $910 million owner of high-quality office buildings in Boston, Dallas and beyond just borrowed at 9.25%, more than twice the interest rate it’s replacing. It’s an ominous sign for U.S. office landlords facing $60 billion of debt maturing at the end of 2023 and 2024, per data miner RCA. Office prices have fallen so much that cap rates are approaching 10%, according to Jonathan Litt, founder of activist hedge fund Land and Buildings Investment Management. Pricier debt means less income, but if rents have stabilized and interest rates keep rising, Piedmont was wise to start reconstructing its balance sheet sooner rather than later.
Persons: Brent Smith, Jonathan Litt, Lauren Silva Laughlin, Jeffrey Goldfarb, Sharon Lam Organizations: YORK, Reuters, Realty Trust, Refinitiv, RCA, Buildings Investment Management, Twitter, Thomson Locations: Boston, Dallas, Piedmont, Spain
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailJonathan Litt warns about a section of commercial real estate space he thought was bucking the trendActivist Investor Jonathan Litt, Land and Buildings Founder and CIO, joins 'Fast Money' to discuss his new call on Alexandria R.E., the state of San Francisco's real estate market, and more.
Persons: Jonathan Litt Locations: Alexandria, San
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailActivist investor Jonathan Litt doubles down on his office space shortLand and Buildings CIO Jonathan Litt joins 'Fast Money' to discuss his bearish call on commercial real estate.
Persons: Jonathan Litt
A major activist investor is betting stalled return-to-office plans will stir up more trouble in commercial real estate. Land and Buildings' Jonathan Litt has been shorting REITs with high office space exposure for three years, and he has no plans to shift gears. Litt first warned Wall Street an "existential hurricane" was about to hit the sector in May 2020. It's kind of like the mall business went from the mall problem to the financing problem," Litt said. "Now, it's a financing problem.
Persons: Jonathan Litt, CNBC's, Litt, JBG Smith, there's Organizations: World Health Organization Locations: Land, Washington
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