Despite the all-time high delinquency rates seen among commercial mortgages, more lenders are showing optimism toward the commercial mortgage-backed securities market, and are gingerly buying up shares in the real estate investment trusts that own those loans, according to the Wall Street Journal. And their positive outlook might be justified — overall, REITs are up about 16.7 percent so far this year and some commercial-mortgage REITs, like iStar Financial and Arbor Realty Trust have made strides as well, up 140 percent and 113 percent so far this year, respectively, according to the Wall Street Journal. But Jason Yablon, a vice president with investment firm Cohen & Steers, said that the positive momentum needs to be taken with a grain of salt. “Because the stock has been beaten down, any incremental good news [about] the financing environment is going to make the stock move a lot,” Yablon said.
Investors show love to commercial REITs
April 14, 2010 11:23AM