When is the Next Recession?
Blackstone to Purchase Strategic Hotels for $6 Billion
Strategic Hotels & Resorts, Inc. (NYSE: BEE) said Sept. 8 that private equity firm Blackstone Group LP has agreed to purchase the REIT for approximately $ 6 billion.
Blackstone agreed to pay $ 14.25 in cash for each Strategic share. That represents a premium of approximately 13 percent above the intra-day trading price on July 23, when a news report pointed to a potential transaction. The acquisition includes Strategic subsidiary Strategic Hotels Funding LLC as well as all of the firm’s outstanding debt.
Spanning the Globe with Don Hanna of Roubini Global Economics
REITs Dip in August as Broader Markets Slip
REITs lost ground in August, as market watchers said concerns about the Chinese economy and interest rates weighed heavily across the globe.
The total returns of the FTSE/NAREIT All REIT Index fell 5.7 percent in August, while the S&P 500 Index lost 6.0 percent. The yield on the 10-year Treasury note was flat for the month.
“The baby is being thrown out with the bath water. No sector seems to be immune,” says Daniel Donlan, managing director at Ladenburg Thalmann & Co., Inc.
GRESB 2015 Survey Points to Continued Improvement by Global Real Estate Sector
The Global Real Estate Sustainability Benchmark (GRESB) 2015 Survey results released Sept. 2 point to improved environmental performance by the global real estate industry.
Fundamentally Speaking: Economic Fundamentals Sound Despite Market Moves
In the latest edition of Fundamentally Speaking, Calvin Schnure, NAREIT’s senior vice president for research and economic analysis, explained that underlying fundamentals of the broader economy remain positive, despite market gyrations.
Schnure noted that growth in gross domestic product (GDP) made a robust improvement in the spring. At the same time, sustained consumer spending, particularly for auto sales, has been evident. “In sum, the underlying economy looks quite good,” Schnure said.
Quick Study: REITs Follow Broader Markets Down in August
In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, discussed the difficult market conditions that prevailed on U.S. REITs in August.
The total returns of the FTSE NAREIT All REITs Index dipped 5.7 percent during the month, while the S&P 500 Index lost 6.0 percent.
“August was a very difficult month for investors. There really wasn’t any safe place to be invested,” Case said.
Ashford Hospitality Trust Paring Select Service Assets
Ashford Hospitality Trust’s move (NYSE: AHT) to sell its select service hotel portfolio in order to focus on upper upscale properties has helped simplify the REIT’s strategy, according to chairman and CEO Monty Bennett.
“Our shareholders wanted clarity,” Bennett said in an interview with REIT.com. He said the decision marks a step toward creating well-defined, distinct strategies for the investment platforms operated by Ashford Inc. (NYSE: AINC), Ashford Trust’s advisor.
American Campus Breaks Ground on 100th Property
In the latest episode of the NAREIT Podcast, Bill Bayless, president and CEO of American Campus Communities, Inc. (NYSE: ACC), discussed the start of the student housing REIT’s 100th property and looked at the evolution of the sector.
American Campus broke ground in July on its 100th property, U Club Sunnyside at West Virginia University. The new facility will house 536 beds for university students.
“It’s a special milestone for the company,” Bayless said.