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Cheektowaga"s draw for residential and commercial developers

Among Cheektowaga's assets: Central location, the airport, the Walden Galleria......»»

Category: topSource: bizjournalsNov 25th, 2021

How New York’s real estate industry can prepare for future of electric cars

By Brandon Jacobs Major momentum is pushing the electric vehicle (EV) industry forward. Expanding the country’s EV network is a core component of the Biden Administration’s infrastructure plan and national climate agenda.  Similarly,  OEMs have invested more than $300 billion in transitioning to electric. New York City is taking on... The post How New York’s real estate industry can prepare for future of electric cars appeared first on Real Estate Weekly. By Brandon Jacobs Major momentum is pushing the electric vehicle (EV) industry forward. Expanding the country’s EV network is a core component of the Biden Administration’s infrastructure plan and national climate agenda.  Similarly,  OEMs have invested more than $300 billion in transitioning to electric. New York City is taking on a path of its own, having recently made legislative moves to ban the sale of gas-powered vehicles after 2035. In addition, the City plans to install close to 50,000 public EV chargers by 2030, a major infrastructure expansion for the city as it looks to drastically cut transportation-related emissions and combat climate change.  BRANDON JACOBS These initiatives are no easy feat. In a city with nearly two million cars, how can The Big Apple turn all electric? As the real estate capital of the world, this industry will play a major role and the transition to electric will become a great well of opportunity for developers who embrace this future. Here’s how. Utilize Untapped Real Estate: Parking Garages First and foremost, the use of parking garages to host EV charging stations will be critical to the adoption of electric vehicles in New York City. While DC fast charging, often referred to as “superchargers”, which allows cars to charge in less than 45 minutes, tends to generate a lot of attention, mass adoption of EVs will actually rely on its slower, but the more efficient counterpart, Level 2 chargers, which can provide up to 65 miles per hour of charging. This is because the average American only drives about 40 miles per day, and even less in New York City due to its walkability. Instead, for the majority of the day, our cars are not in use and sit idle, providing ample opportunity to charge EVs in a manner that is both economical, efficient, and reliable for drivers.  This is where parking garages come in. Due to their very nature of storing cars for extended periods of time, such as overnight for residential tenants or throughout the day for commuters, parking garages become an optimal charging location for New Yorkers and developers alike. With more than 1,000 parking garages in Manhattan alone, paired with the continued rise in new multi-family, commercial and mix-used developments across the city, these properties are prime real estate for EV charging and will be an important component in any city-wide EV charging deployment strategy.  Build Energy Resilience  As more EVs come online, new developments will need to plan for increased power usage. The earlier developers account for this uptick in power, the cheaper it will be to accommodate within a project. This means real estate developers must account for EV charging infrastructure during the initial design of a building’s energy infrastructure. Making sure the electrical engineers and architects are aware of this from early on will be crucial, and those who do this will have a head start on their competition For instance, in addition to the usual accounting of energy for typical aspects of a building, like washing machines and lighting, property managers will also need to make sure they consider the energy consumption of EV chargers.   Understanding that EV chargers’ energy use is similar to that of a typical elevator system will help property owners prepare for the demand of EVs and bring in enough power to support charging infrastructure. Real Estate Has a Lot to Gain It is important to note that while today EV charging is a nice-to-have, by 2035 it will be non-negotiable. For instance, today, including EV charging stations in a property creates an attractive amenity for the growing number of consumers who are increasingly environmentally conscious. In the near future as EV ownership increases, however, prospective tenants will limit their search to buildings that have EV charging infrastructure. Any delays in incorporating EV infrastructure in a property will inherently put real estate owners at a disadvantage. Those who embrace the growth of EVs, however, will greatly expand their potential clientele.  In addition to significantly growing their client base, the deployment of EV charging infrastructure across real estate properties is also a revenue-generating amenity in and of itself.  Installing EV chargers in a property automatically creates a new stream of income as developers can monetize the revenue from ongoing use of the chargers. As a result, EV charging infrastructure not only financially rewards developers, but also plays an integral role in accelerating a technology that improves the sustainability of communities and is crucial to the future of the climate.  It is an exciting time for EVs and New York City. As cities across the country look to implement their own electrification and climate strategies, New York – and the role that the real estate industry will play in accelerating these goals – can serve as a benchmark and model. Brandon Jacobs is the regional vice president, Northeast, of Blink Charging The post How New York’s real estate industry can prepare for future of electric cars appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyDec 3rd, 2021

Building stalwart Sydney Engel dead at 98

Sydney Engel grew up in a Brooklyn household where times were so hard that he and his brother Arthur took turns wearing their one pair of good shoes. When he died peacefully at his Hewlett Harbor home on November 27 at the age of 98, Sydney Engel was one of... The post Building stalwart Sydney Engel dead at 98 appeared first on Real Estate Weekly. Sydney Engel grew up in a Brooklyn household where times were so hard that he and his brother Arthur took turns wearing their one pair of good shoes. When he died peacefully at his Hewlett Harbor home on November 27 at the age of 98, Sydney Engel was one of the most respected and successful real estate developers of his generation. Born in Brooklyn in 1923, the young man was seen instructing fellow Army Air Force recruits on the finer points of early radar. Having lost his mother at a young age, he returned home to care for an ailing father, during which time Sydney started an insulation company bearing his father’s name, Louis.   Expanding his business through a reputation for hard work, efficiency, and performance, Engel grew his area of expertise from insulation, to include roofing, siding, and oil burner conversions. Lending institutions so heavily depended on Engel to improve properties, they began to refer business to the company, requiring, at one point, 15 salesman to work from Sydney’s Brooklyn basement office/apartment to handle the orders. As Engel’s business evolved, legendary New York families such as the Rockefellers and Mellons engaged his company based on Sydney’s reputation as a no-nonsense, “stick to the schedule and the budget” general contractor who delivered what he promised.  As a result, he was often made a partner in development projects under his construction supervision. Together with his first non-family partner, Sol Henkind, Engel would further expand his business over the next 50 years, building nursing homes, office buildings, and thousands of rental units throughout the New York – New Jersey metro area.  By 1997, at the age of 74, when most successful entrepreneurs would be in retirement, Sydney decided it was time to seek new challenges and expand his business activities even further. In that year, he welcomed Jan Burman as a partner in a new company, Engel Burman, that has become synonymous with luxury assisted living and rental housing.  Before his passing, Sydney Engel was the partner in charge, supervising millions of square feet of new construction, applying the same intense focus, resolute dedication, and passion for getting the job done right that he first displayed as a young man whose sole business asset was an insulation truck carrying his father’s name. Mr. Engel in a restored truck similar to one he started his business with nearly three quarters of a century ago With partners Jan Burman, David Burman, Scott Burman, Steven Krieger, Michael Weiss, and Jon Weiss, today, Engel Burman is a fully integrated real estate company with an expansive portfolio including residential, commercial, senior living, healthcare, and properties throughout the eastern seaboard. Sydney’s marriage of 70 years to the late Sylvia Engel leaves a legacy of three children: Robin Rudolph, Cathy Weiss, and Dr. Lewis Engel; eight grandchildren: Jon, Scott, Brian, Kimberly, Ashley Alexander, Nick and Matt; and seven great-grandchildren: Dylan, Harper, Sawyer, Liv, Brock, Crosby, and Sasha. Long an admirer of the island of Jamaica, Mr. Engel founded a not-for-profit hospital there, Mo Bay Hope, where, not surprisingly, he oversaw its construction. He was awarded the honor of Commander by the Jamaican government for his charitable efforts that touched the lives of many on the island, and he was a board member of the American Friends of Jamaica. Here in New York he was a board member of ADL and Hadassah as well as a Board member of Temple Israel in Lawrence, NY, and Franklin General Hospital in Valley Stream (now Long Island Jewish Valley Stream). Following his great granddaughter’s diagnosis of pediatric cancer, Mr. Engel became a significant donor to Memorial Sloan Kettering, helping raise $2 million for pediatric cancer research over the last three years. “In his nearly one hundred years of life, Sydney Engel charted a course from poverty to philanthropy, creating along the way an example of what can be accomplished by a man of integrity committed to hard work, high standards, and an insistence on excellence,” concluded his son-in-law, Michael Weiss.       The post Building stalwart Sydney Engel dead at 98 appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyDec 1st, 2021

National developers propose mixed-use project for Avondale

Called Ascend, the overall development could include both residential and commercial areas comprised of single-family homes, multifamily units and shops near Litchfield Park......»»

Category: topSource: bizjournalsNov 29th, 2021

WHO’S NEWS: Latest appointments, promotions

Marcus & Millichap has expanded the Board of Directors with the election of Collete English Dixon. She will also serve as a member of the Board’s Nominating & Corporate Governance Committee. Dixon currently serves as Executive Director of the Marshall Bennett Institute of Real Estate, Roosevelt University in Chicago. She... The post WHO’S NEWS: Latest appointments, promotions appeared first on Real Estate Weekly. Marcus & Millichap has expanded the Board of Directors with the election of Collete English Dixon. She will also serve as a member of the Board’s Nominating & Corporate Governance Committee. Dixon currently serves as Executive Director of the Marshall Bennett Institute of Real Estate, Roosevelt University in Chicago. She previously held various key officer and management roles at PGIM Real Estate/Prudential Real Estate Investors (PREI), which is a business unit of Prudential Financial. In her role as Executive Director/Vice President of transactions from 1996 to 2016, she oversaw the sale of investment properties throughout the US. Prior to her role in dispositions, Dixon was responsible for sourcing wholly owned and joint venture real estate investment opportunities. Her experience also includes property development and asset management. Dixon served as president of CREW Network, chair of the CREW Network Foundation, and president of CREW Chicago. ••• Avison Young has hired Larry Zuckerman as principal in the firm’s New York City office. He brings nearly 40 years of commercial real estate experience and leadership to the firm and specializes in delivering value and expertise to office tenants in New York and across the Tri-State area. Zuckerman previously served as senior managing director at Newmark and, before that, was a senior vice president with Grubb & Ellis for nearly 20 years. He began his real estate career with Gronich and Company after graduating from Franklin & Marshall College with a BA in Business. ••• Rudin Management Company announced that two senior executives have joined the company. Christopher Flynn has been appointed Senior Vice President and Chief Financial Officer, and Ray Houseknecht joins as Senior Vice President, Head of Multifamily. Chris Flynn is responsible for all accounting operations, financial reporting, lender and JV partner compliance, audit and tax compliance, and treasury functions across the organization in his new role. He also serves on Rudin’s Executive Committee. An industry veteran with more than 20 years of experience across the real estate sector, Flynn served as Chief Financial Officer at Atlas Capital Group, Vice President at Vornado Realty Trust and Manager at Ernst & Young. He graduated from SUNY Binghamton with a Bachelor of Science in Accounting and is a certified public accountant (CPA). Ray Houseknecht is responsible for the operation of Rudin’s residential portfolio including leasing, marketing, facilities, design and construction. He comes to Rudin from WeLive by WeWork, where he was most recently the Global Head of Operations and Asset Management. Prior to WeLive, Houseknecht spent eight years at AvalonBay Communities as a Senior Portfolio Director, where he managed the operations of 3,700 residential units, as well as the development and expansion of new assets throughout Long Island. Before AvalonBay, he spent three years in his own real estate consulting practice and five years at Heinlein Capital Ventures. He holds a Bachelor of Business Administration from Loyola College in Maryland. The announcement comes on the heels of five senior-level promotions at Rudin, including Samantha Rudin Earls, Michael Rudin and Neil Gupta to Executive Vice President, and Cassie Kulzer and Nick Martin as Senior Vice President. Rudin also recently appointed Andrew Migdon as Executive Vice President and as the company’s first-ever Chief Legal Officer. ••• Colliers has hired Shawn Henry as managing director, Head of Single-Family Rental | U.S. Capital Markets. An expert with more than 20 years of experience in the single-family rental (SFR) sector, Henry joins Colliers after building his own specialty SFR-focused business. Before that, he held senior leadership positions covering SFR with both A10 Capital and Capmark/GMAC. He will lead Colliers’ single family practice as it advises a variety of institutional investors across the spectrum of transactions, including acquisitions, capital raises, dispositions and financings for large and mid-sized portfolios of SFRs across the country. Henry is the latest appointment to Colliers’ Capital Markets platform, which has recently added Head of New York City Capital Markets Peter Nicoletti, Managing Director of Boston Investment Sales Frank Petz and New York Debt & Equity Finance Group Managing Director Jimmy Board. ••• Abraham Bergman has assumed the positions of president and CEO of Eastern Union. He had previously served as Eastern Union’s managing partner since co-founding the firm with Ira Zlotowitz in 2001. Zlotowitz had served as the company’s president and CEO since its inception. He will now be pursuing other activities in the commercial real estate field. Bergman has played an active and central role in shaping Eastern Union’s corporate strategy and structure. He has been a leader in sales and relationship-building across each of the company’s CRE sectors. Bergman holds a bachelor’s degree in accounting from Touro College and a master’s degree in general business administration from Baruch College. Eastern Union also announced that its two most productive brokers, Marc Tropp and Michael Muller, have been named to the company’s board. They each hold the title of senior managing director. Muller has been the firm’s leading broker in the New York City market over the past 20 years. Tropp has been Eastern Union’s number-one broker in the Mid-Atlantic regional market for the last 16 years. Moshe Maybloom, a 14-year veteran of the firm, has also been named to the company’s board and has assumed the position of senior managing director of operations. ••• DH Property Holdings has hired architect Michael Bennett as director of development as the company looks to expand nationally. Bennett, a former principal with Ware Malcomb, has designed more multi-story, urban-infill distribution centers than any other architect in the nation, including groundbreaking DHPH projects. Bennett began his career as a designer at Ware Malcomb in 1997 after completing a University of Arizona architecture degree. He spent 24 years at the firm and served as head of the East Coast division. He has deep experience with land-use and planning studies and with complicated zoning and infrastructure challenges. ••• Walker & Dunlop has appointed P.J. McDevitt as Managing Director. Focused on the affordable housing space, McDevitt will drive loan origination growth nationally to help address the country’s significant need for affordable housing. Since 2018, McDevitt has been involved in the origination, underwriting, and closing of nearly $1 billion in affordable housing transactions. He previously served as a director at Greystone and, before that, held various positions with PNC, where he contributed his expertise as a Production Management Representative and Production Assistant. McDevitt began his career in commercial real estate at Walker & Dunlop as a senior analyst. ••• Duval & Stachenfeld announced that Kim Le and Christopher Gorman have been named co-chairs of the firm’s real estate practice group. Le and Gorman both joined D&S as associates in 2004. In the 17 years since, they have each become highly sought-after attorneys, who have consistently leveraged their legal acumen and business savvy to craft creative solutions for their clients. Over the course of their respective careers, each has served as legal counsel on billions of dollars of complex real estate transactions, including platform creation, portfolio acquisitions, multi-layered financings, and complex joint-venture equity partnerships. ••• Greystone announced that Adam Lipkin has joined Greystone Capital Advisors as a Vice President. He joins the capital solutions advisory group to leverage his capital markets knowledge and experience, including expertise in Commercial Property Assessed Clean Energy (C-PACE), to help craft innovative debt and equity solutions for clients and originate large-loan agency and FHA opportunities within his extensive client network. Lipkin has worked in the commercial real estate finance industry for nearly two decades, and joins Greystone from Counterpointe Sustainable Real Estate LLC, a direct lender for C-PACE, where he served as Executive Director. Prior to that role, he was a Vice President at Grandbridge Real Estate Capital. Earlier in his career, Lipkin worked in capital advisory with HFF and a subsequent boutique advisory team, Olympian Capital Group. Prior to his advisory work, Lipkin served at Ernst & Young in the New York Real Estate Advisory Group. ••• TSCG announced the hiring of Craig Gambardella as a tenant and landlord broker. He will operate out of their Manhattan and White Plains offices. An expert in the health care real estate sector, Gambardella will also spearhead a strategic initiative within TSCG to develop a proprietary suite of services aimed at real estate management in the healthcare sector. Gambardella has been in the healthcare space for more than a decade and has worked with such healthcare organizations as Yale New Haven Health, Ontario Hospital Association, Memorial Sloan Kettering, and Cedars Sinai Hospital. At JLL, he was part of their healthcare real estate practice. ••• RIPCO Real Estate announced that Jordan Cohn has joined the firm as executive vice president. Cohn previously served as a partner of SCG Retail, the urban division of The Shopping Center Group, where he was with the firm for nearly 20 years. His primary focus was on tenant representation and has closed deals for recognized brands such as REI, Chick fil A, Home Depot, Bobby Flay, Charles Schwab, Crossroads Trading Company, Señor Frogs and many other local and national retailers, to name a few. In addition to retail real estate work and accolades, Cohn has a career in the film industry and can be seen in movies such as The Westler, written by his brother in-law. ••• Madison International Realty announced that Diana Shieh and Kim Adamek, managing directors of Portfolio and Asset Management, have been promoted to co-heads of Portfolio and Asset Management, overseeing assets under management in all sectors and regions across the US, UK and Europe. Shieh and Adamek will oversee the firm‘s global portfolio and asset management team focused on its investment positions in real estate assets, including business plan execution, monitoring financial performance, driving relationships with Madison’s operating partners, and providing strategic recommendations seeking to enhance investment returns. They each joined the firm in 2014. Shieh and Adamek each bring nearly two decades of experience to the role. Prior to Shieh’s tenure at Madison, she held various positions in asset management and investments at Rockwood Capital and Shorenstein Properties. Shieh also serves as the Co-Chair of Madison’s ESG Committee. She is a graduate of Rutgers University. Adamek held various positions in acquisitions at CBRE Global Investors and Unico Properties. She is a graduate of Northern Arizona University and holds an MBA from New York University. ••• Katz & Associates announced that Russel Helbling has joined the firm as managing director in New York City. Helbling will be working on tenant and landlord representation primarily in Long Island and the surrounding New York Metro region. For the past 10 years, Helbling has worked in tenant and landlord representation at Sabre Real Estate. He has handled strategic roll-outs for brands including Starbucks, Wendy’s Hamburgers, Sherwin Williams and Dollar General and has been involved in numerous ground-up development leasing assignments in Long Island and the Outer Boroughs. Prior to working at Sabre, Helbling was at Breslin Realty working on retail leasing, and at Massey Knakal, where he primarily focused on investment sales. Helbling graduated from Indiana University in Bloomington with a Bachelor of Science in telecommunications. ••• Blank Rome announce that Sonia Kaur Bain has joined the firm’s New York office as a partner in the Real Estate practice group,. Bain represents developers, retail companies, hotel groups, landlords and tenants, and family offices across the country in the acquisition and development of numerous types of commercial real estate assets. Prior to joining Blank Rome, Sonia was a real estate partner at Bryan Cave Leighton Paisner. In addition to her practice, Bain currently serves as the president of New York Women Executives in Real Estate (WX), where she has been a board member and officer for five years. ••• Avison Young has hired Thomas Kaufman as principal to boost the firm’s business efforts in the Downtown Manhattan submarket. He brings more than 30 years of experience in providing consulting and brokerage services to banks, partnerships, corporations and institutional owners. He joins Avison Young from InterRelate Group, where he served as Chief Executive Officer. Before that, he spent seven years as an executive director at Cushman & Wakefield and, prior to that, he was with the New York office of CB Richard Ellis as a senior vice president. Kaufman has broad experience representing both major commercial property owners and tenants. He provides consulting services for the not-for-profit community, including American Numismatic Societyand the Hetrick-Martin Institute,. Kaufman will work closely with Todd Korren, principal in Avison Young’s New York City office, to grow the firm’s downtown platform through recruiting and new business development initiatives. ••• Duval & Stachenfeld announced that Ilya Leyvi has been named co-chair of the firm’s real estate finance practice group. Leyvi will helm the practice group alongside Tom O’Connor, who has chaired the real estate finance practice since he joined D&S in 2014. Currently a partner at D&S, Leyvi first joined the firm as a summer associate before joining full-time as an associate in 2013. He regularly represents lenders and borrowers on bridge loans, construction loans, mezzanine loans, and commercial mortgage-backed securities, as well as preferred equity investments. He has served as counsel on deals across all property types. Leyvi graduated at the top of his class from Cornell Law School and received his B.B.A. from CUNY Baruch College – Zicklin School of Business. ••• Cushman & Wakefield has hired Tim McNamara and Kevin Daly as senior director and director, respectively. Based out of the firm’s Hartford office, they will cover New England, Westchester County and New York’s Hudson Valley to greater Albany. McNamara has more than 34 years of industry experience and has been recognized as one of the top producing retail brokers in New England and New York. In addition to his leasing experience, he has facilitated the sale of tens of millions of dollars’ worth of retail properties. McNamara holds a Bachelor of Science in Finance from Bryant University. Daly has more than 20 years of industry experience working with a range of national retailers, selling in excess of $50 million of land and overseeing nearly $200 million of lease transactions throughout his career. McNamara and Daly join the firm from SullivanHayes Companies Northeast, . Daly has a Bachelor of Arts in History from Providence College. ••• JPMorgan Chase announced Michelle Herrick as Head of Real Estate Banking (REB). Previously, Herrick served as the REB Central Region Market Manager, overseeing the Midwest, Mountain and Southeast markets. She led a team that helps clients with strategies and tools to maximize investment opportunities, manage operating costs, mitigate risk and manage assets for greater efficiency. Prior to joining JPMorgan Chase in 2017, Herrick started her career at LaSalle Bank and remained there after Bank of America acquired the firm in 2007. She held various roles within the commercial real estate banking business, covering a national book of public and private real estate sponsors. Michelle received her bachelor’s degrees in accounting and finance from Miami University and she earned an MBA from the University of Chicago. ••• Due By the First has hired Matthew Murphy as Portfolio Manager responsible for underwriting new deals and managing current assets for the Long Island-based firm that offers short term bridge loans, permanent financing and commercial debt acquisitions. Previously, Murphy worked as director of finance at ERG Commercial Real Estate. Over his career, Murphy has overseen the origination of over $100 million of commercial and multifamily bridge loans in New York City. He began his career as a commercial real estate broker and managed a team focused on CRE deals in the Bronx. He is a 2009 graduate of SUNY Albany where he received a bachelor of science degree in physics. ••• The Swig Company announced the following personnel changes: Stephanie Kwong Ting has been appointed Executive Vice President – Director of Investments in charge of investments and will take charge of the company’s capital markets transaction activity. She succeeds Tomas Schoenberg who will retire later this year. Ting joins the company from Morgan Stanley where she was an Executive Director. Kairee Tann has been named Vice President of Innovation and Asset Management. Tann, who joined The Swig Company in 2016 as a project manager responsible for 300 Lakeside in Oakland, was most recently VP of Asset Management. The post WHO’S NEWS: Latest appointments, promotions appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyNov 22nd, 2021

Millennials, Remote Work Are Upending Cities—What It Means for Real Estate

Location is, and has always been, everything in real estate. The truism that where a property sits must be its most important characteristic remains undisputed. But what is location, really? What does it mean to homebuyers, and what are the consequences when changes come? The truth is, street layouts, public transportation systems, commuting routes, open […] The post Millennials, Remote Work Are Upending Cities—What It Means for Real Estate appeared first on RISMedia. Location is, and has always been, everything in real estate. The truism that where a property sits must be its most important characteristic remains undisputed. But what is location, really? What does it mean to homebuyers, and what are the consequences when changes come? The truth is, street layouts, public transportation systems, commuting routes, open space, walking paths, restaurants or shopping, parks, schools and scenic views are malleable both in how they are valued and how they come to be. While location might seem like a relatively static feature when talking about properties, shifting priorities from policymakers as well as evolving consumer preferences can quickly cool off a hot neighborhood or revitalize a lagging market. Both these processes are happening all the time, but the current shift is maybe more dramatic and moving more rapidly than at any time in recent memory as Americans completely reevaluate exactly where they want to live—and why. Dr. Sam Chandan is a professor at NYU and Academic Dean of the school’s Schack Institute of Real Estate. He says a multitude of changes are manifesting now that could impact both city planning and real estate for decades to come. “Millennials are not necessarily looking for something that looks like Levittown,” says Chandan, referring to the hyper-planned suburban Long Island community that is often cited as a model of postwar housing philosophy. “It’s not sort of a ‘Leave it to Beaver’ scenario.” With people born in the 1980s and 1990s becoming the largest segment of homebuyers, understanding that demographic’s needs and preferences is a holy grail for real estate professionals. But how is that information guiding the growth of towns and cities, and what does it mean for the housing market? Chandan says that like most things real-estate related, the answers are always going to be local. But as the temporary supply constraints currently preventing the housing market from reaching its full potential fade, Chandan predicts that areas that allow higher densities through zoning reforms and follow a more centralized, community-oriented plan of development will be best positioned to capitalize and grow. “We’re talking about wanting to be in easy reach of a set of cultural and social amenities, and I think that is quite different from what we would have seen as the profile of a comparably-aged young family 30 years ago,” he says. Waiting on the World to Change Manhattan Beach nestles in the southwest corner of Los Angeles. The median sale price for a home exceeds $2 million, according to U.S. census data, with a mostly white and Asian population in a county that is almost 45% Hispanic. Most residential areas are composed of close-set, adobe-roofed single-family constructions on narrow streets, bisected with a commercial thoroughfare that feeds into the city’s bustling beach-adjacent downtown—a spread of health food stores, cafes and boutique retail shopping pressed right up against the water. Kristi Ramirez-Knowles is a team leader for Your Home Sold Guaranteed Realty and a long-time Manhattan Beach resident, though she works in many of the surrounding southwest LA cities. In an area that is historically resistant to change, COVID has potentially provided a kick-start for generational changes in living preferences. “Now, post COVID—though we’re still in COVID—we still have a mix. We still have people that are willing to go almost anywhere,” she says. “ it’s a safe community.” Woburn, Massachusetts is a sprawling suburb about 25 minutes outside of Boston. It can trace its European colonization back to the mid 1600s, and is now characterized by its rustic winding streets and big colonials with plenty of forested areas and parks filling the margins. The town offers a wider range of price points, from $150,000 ranch fixer-uppers to a handful of multi-million-dollar estates. Eileen Dohtery is a ninth-generation resident of Woburn with 40 years of real estate experience, currently working for Lamacchia Realty. She says even as homebuyer preferences have evolved rapidly, change in policy and infrastructure often creeps up more gradually. “ are beside themselves because there’s so much development—if anything they’d like to restrict it and make it less per acre,” she says. Dan Forsman is President & CEO of Berkshire Hathaway HomeServices Georgia Properties. Overseeing the Atlanta region, he says dozens of thriving suburbs—many of which were originally vacation or resort communities—have begun “revitalization” efforts to begin serving changing needs and desires of longer-term residents. “Eclectic, farm to table restaurants—people are looking for that, access to that, and looking to where they can get that when they’re away from what I call ‘white noise,’” he says. Though these three disparate regions will certainly evolve along different lines at a more granular level, Chandan says that broadly the narrative of mass migration to different states or cities is overblown. People—especially young people—are looking to live within or near traditional metros like New York or Boston, but specifically for towns that can offer them a specific index of amenities. “What the data actually tells us is the dominant trend is greater dispersion in the metropolitan area,” he says. “They’re able to sort of optimize in a way that also accounts for all these other things that they care about.” What’s My Age Again? One of the most direct methods of addressing these needs is “upzoning” to allow for more density around what Chandan describes as the “quasi-urban core” of smaller towns and suburban cities. This has proved effective in combating land scarcity, affordability and transportation access, and often allows for developments of mid-rise condo complexes, townhomes or repurposed mixed-used construction that previously might have been disallowed or heavily regulated. These changes are also becoming more politically viable in many places as a new generation arrives—a generation that is more comfortable with diversity and living close to others, according to Chandan. In Woburn, this is only partly true, as Dohtery says she has observed some attitudes changing while others have not—starting with acceptance of racial diversity. “In the older parts of the center…it was more mixed nationalities. The older people wouldn’t walk down there. Younger people are that much more liberal, they don’t care, they like it. That’s where you see changing,” she reflects. In recent years there has been a big push to tear down old buildings in Woburn’s centuries-old central hub, putting up some multifamily living units and opening restaurants and retail stores. Doherty herself owns a multi-family home right in the city center, where her niece currently lives with some younger roommates. “They absolutely love being there, they walk downtown—literally in their backyard—to a different restaurant every night,” she laughs. At the other extreme, some neighborhoods in towns abutting Woburn can only be reached by unpaved, pothole-ridden streets—not because the town cannot afford to fix or pave them, but because people who live there have lobbied against it, according to Doherty. The idea, she says, is to discourage anyone who doesn’t live there from even driving past, keeping noise and nuisance to an absolute minimum. “That’s old Yankee money,” Doherty says. “It keeps the people out of their neighborhood.” Some of these folks are likely fighting a losing battle if they’re hoping to prevent development to that extreme (Doherty is currently involved with a 147-unit townhome development in Woburn). While resistance from locals can certainly slow down the evolution of a city, eventually both policymakers and developers are going to find ways to meet consumers with what they want. One thing that is changing in Los Angeles is at least a partial removal of one of the biggest barriers there: commuting. In the past, Ramirez-Knowles says she would tell potential homebuyers to rent a hotel for a night near a neighborhood they were considering and see if they could endure the level traffic and smog on a day’s commute before deciding to live there. But now with remote work, as well as a renewed emphasis on transportation and now-ubiquitous electric cars, Ramirez-Knowles says that areas that used to be defined by their freeway access and distance to business centers are trying to become self-sustaining. “So many millennials are doing a lot of their jobs—-they can work from home,” she says. “They don’t want to get out and drive. It’s important for them to walk or if they have to drive, drive a very short distance.” That is not to say that traffic does not matter anymore—commuters still end up driving as much as four hours a day to go a handful of miles cross-town, Ramirez-Knowles says. But areas that have more space, better views and nice schools are now options for many more families who do not have to worry about prohibitively lengthy drives. Another offset of the millennial lifestyle and work-from-home opportunities that is influencing city layouts is loneliness. Starting with the pandemic isolation, Ramirez-Knowles says people began seeking out “community amenities” where they could at least encounter another friendly (even mask-wearing) face. That has continued as people who work from home have limited excuses to just get outside, meet neighbors and learn about their town. “They want to be able to go walk their dogs, walk with their kids, get outside and get vitamin D,” she says. “You’re not getting out very much…you need places to go walk, you need a walkway—a green belt, if you will—a park, a pier.” In the Atlanta area, several towns are realizing that they can provide a lot more for their changing communities, according to Forsman. People who have second homes in the suburbs are spending more and more time away from the white noise of their working lives, he says, and are beginning to look for the same amenities in these areas as they have in their primary homes. Though this trend is hardly analogous to what is happening in Woburn or Los Angeles, the effect is the same: cities are re-developing downtowns and shifting the kind of access and amenities they provide. “They’ve had a face lift and an upgrade, because people aren’t going to malls the way they used to,” Forsman says. This applies even to areas in the north that historically have been made up of mostly seasonal resort towns in the mountains. As flexible work allows residents to spend more time here, businesses move in to provide more grocery shopping, entertainment and year-round services, which in turn draws even more people to make those towns their permanent—or semi-permanent—homes. Stop, Collaborate and Listen There are many other barriers and unintended consequences stemming from the types of changes happening right now as well, he adds. Cities that are too successful with these tactics will quickly see the price of land and homes balloon, slowing real estate growth and creating more racial and economic segregation. In places like Woburn, there is also the possibility of political backlash, and policymakers must balance the often-powerful backlash from residents and other stakeholders who fear loss of so-called community character or outsides. Real estate professionals can make a big difference in these situations. Doherty says that as a longtime resident she is trusted by even the most stalwart Woburnites and can navigate the complicated landscape of local politics and land use laws, where trust and experience make all the difference. Doherty speaks of being contacted by a local politician one time, who invited her to attend a campaign event emphasizing that she was maybe the most well-known public figure in the area. “I said to him, ‘I have to go, I sold you your house!’” she laughs. In Woburn, developments, zoning tweaks and infrastructure investments happen gradually, and becomes much easier with any local support, according to Doherty, with projects eeking through the approval process one by one. On the other side of the country, Ramirez-Knowles says the overpricing and lack of homes has pushed people to settle in areas where the schools or neighborhoods maybe aren’t what they had originally hoped for. Developers are building brand new, more affordable condos inland in cities that haven’t historically been “family friendly” like Torrance and Gardena, and people are snatching them up, she says. “I would say that’s attracting families even though the school district may not be that great. I think it’s the appeal of brand new and something they can afford,” she posits. Many of these units are selling out before they are even framed, she adds, during the current inventory crunch. If cities approve the kind of housing units people are looking for— which Ramirez-Knowles describes as narrow, multi-floored condo communities with built-in recreation centers, pools and gyms—even more business investment and development often follows. The result of all this movement and new development, of offering wider varieties of housing types and densities in different parts of a given city creates demographic diversity, according to Chandan. A place that can accommodate young and old, wealthy and lower income folks, families and retirees is much healthier for everyone, and especially for the real estate market. Though convincing some people of these benefits will be difficult—and sometimes impossible— Chandan argues that even those who prefer their “Leave it to Beaver” lifestyle will eventually benefit from this type of change. “The person who is a young family right now in a two or three-bedroom rental unit in that quasi-urban core—in five years, that person is a potential buyer for your home,” Chandan says. Jesse Williams is RISMedia’s associate online editor. Please email him your real estate news ideas to jwilliams@rismedia.com. The post Millennials, Remote Work Are Upending Cities—What It Means for Real Estate appeared first on RISMedia......»»

Category: realestateSource: rismediaNov 22nd, 2021

Genesis Reports 2021 Third Quarter Results

CALGARY, AB, Nov. 3, 2021 /CNW/ - Genesis Land Development Corp. (TSX:GDC) (the "Corporation" or "Genesis") reported its financial and operating results for the three months ("Q3") and nine months ended September 30, 2021 ("YTD"). Genesis is an integrated land developer and residential home builder owning and developing a growing portfolio of well-located, entitled and unentitled residential, commercial and mixed-use lands and serviced lots throughout the Calgary Metropolitan Area. The following are highlights of Genesis financial results for the third quarter of 2021: 2021 Highlights (Q3 2021 and YTD 2021) 168 New Home Orders, up 22% from YTD 2020: New home orders for YTD 2021 were 168 units compared to 138 units for the same period in 2020. The Corporation ended the third quarter of 2021 with 111 outstanding new home orders, compared to 57 at the end of Q3 2020. Land Servicing Spend up 155% from YTD 2020: Implementation of Genesis' growth strategy is proceeding well with land servicing expenditures during the first nine months of 2021 of $37.5 million, including three new subdivision phases, up from $14.7 million for the same period in 2020. Housing operations have expanded to five communities as of September 30, 2021, up from two a year earlier including operations in two communities being developed by third party developers. Revenues of $83.2 Million in YTD 2021: Genesis sold 140 homes, 58 residential lots to third parties and four development land parcels through September 30, 2021 generating revenues of $83.2 million. In the same period in 2020, Genesis sold 135 homes, 60 residential lots to third parties and three development land parcels generating revenues of $84.1 million. Genesis sold 47 homes, 38 residential lots to third-parties and three development land parcels in Q3 2021 generating revenues of $35.0 million. In Q3 2020, Genesis generated revenues of $29.7 million which included 53 homes and 23 residential lots sold to third parties. $6.6 Million Net Earnings in YTD 2021: Net earnings attributable to equity shareholders in YTD 2021 were $6.6 million ($0.16 net earnings per share - basic and diluted) compared to net earnings attributable to equity shareholders of $0.07 million ($0.00 net earnings per share - basic and diluted) in YTD 2020. Net earnings attributable to equity shareholders in Q3 2021 were $2.6 million ($0.06 net earnings per share - basic and diluted) compared to net earnings attributable to equity shareholders of $3.8 million ($0.09 net earnings per share - basic and diluted) in Q3 2020. $29.7 Million of Cash and Cash Equivalents: On September 30, 2021, Genesis had $29.7 million in cash and cash equivalents, which exceeded outstanding loans and credit facilities balances of $21.4 million by $8.3 million. Selected Financial Results and Operating Data: Three months ended September 30, Nine months ended September 30, ($000s, except for per share items or unless otherwise noted) 2021 2020 2021 2020 Key Financial Data Total revenues 34,988 29,739 83,230 84,116 Net earnings attributable to equity shareholders 2,615 3,813 6,625 74 Net earnings per share - basic and diluted 0.06 0.09 0.16.....»»

Category: earningsSource: benzingaNov 3rd, 2021

CORRECTING and REPLACING – Quaint Oak Bancorp, Inc. Announces Third Quarter Earnings

SOUTHAMPTON, Pa., Oct. 29, 2021 (GLOBE NEWSWIRE) -- In a release issued October 27, 2021 under the same headline for Quaint Oak Bancorp, Inc. (OTCQB:QNTO), under the table heading "Per Common Share Data," the book value per share was stated as $17.47 at the three and nine months ended September 30, 2021. The correct figure should be $16.35. The corrected release follows: Quaint Oak Bancorp, Inc. (the "Company") (OTCQB:QNTO), the holding company for Quaint Oak Bank (the "Bank"), announced today that net income for the quarter ended September 30, 2021 was $1.8 million, or $0.89 per basic and $0.85 per diluted share, compared to $1.0 million, or $0.51 per basic and $0.50 per diluted share for the same period in 2020. Net income for the nine months ended September 30, 2021 was $4.3 million, or $2.17 per basic and $2.07 per diluted share, compared to $2.2 million, or $1.10 per basic and $1.08 per diluted share for the same period in 2020. Robert T. Strong, President and Chief Executive Officer stated, "I am very pleased to present the Company's earnings for the quarter ended September 30, 2021 which exceeded $1.7 million, an increase of 76.8% over the same period in 2020. Additionally, the Company's earnings for the nine months ended September 30, 2021 were $4.3 million, an increase of 99.0% over the same period in 2020. Total asset growth was 10.7% along with deposit growth of 22.7% and loan growth of 6.6% at quarter end when compared to balances of December 31, 2020. The Bank continued curtailment of high rate CD dependency as evidenced by a CD portfolio reduction of 15.3% coupled with growth in our checking accounts of 35.7% and MMA portfolio of 92.0% at period end when compared to balances of December 31, 2020. This strategic posturing has resulted in an average cost of funds for the three months ended September 30, 2021 of 0.96%." Mr. Strong added, "We recently announced the launch of Oakmont Commercial, LLC, a multi-state specialty commercial real estate finance company as an additional subsidiary company of Quaint Oak Bank. Oakmont Commercial is intended to expand our engagement in this specialty line of Commercial Real Estate lending to a National program level. We have been able to initiate the formation of this company through a staged addition of an experienced leadership team. The addition of this company adds to the synergy of our existing Family of Companies as we continue to grow together." Mr. Strong commented, "Our Bank is also in the process of expanding its wholly owned subsidiary, Quaint Oak Real Estate, LLC. Two new offices have been opened, one in Chalfont, Pa. along with one in Doylestown, Pa. This initiative expands the Real Estate Company into the Delaware Valley market in addition to the Lehigh Valley market initially served. With the expansion comes new, experienced, high profile management. Again, the purpose of this expansion is to add to the synergy of our existing Family of Companies." Mr. Strong continued, "Our Bank's wholly owned subsidiary, Quaint Oak Mortgage, LLC has again achieved the designation of one of the "Fastest Growing Companies" in the Lehigh Valley as designated by Lehigh Valley Business. The Mortgage Company has received this award for an astounding six years in a row. The Mortgage Company place tenth in a field of thirty companies who qualified for the award. This award was granted for increased volume during the year 2020 while operating in the depth of the pandemic. Quite an achievement. Additionally, in its own version of expansion, the Mortgage Company has recently launched "QO Direct". This program is a state of the art, automated application process that is intended to expand the Mortgage Company's field of service to a multi-state level." Mr. Strong concluded, "As previously reported, the Company declared a third quarterly cash dividend this year announced October 13, 2021 and payable November 8, 2021. Additionally, I am pleased to report that total stockholders' equity increased 21.9% at September 30, 2021 compared to December 31, 2020. As always, in conjunction with having maintained a strong repurchase plan, our current and continued business strategy includes long-term profitability and payment of dividends reflecting our strong commitment to shareholder value." As it has since the start of the COVID-19 pandemic, the Company continues to assess the effects of the pandemic on its employees, customers and the communities we serve. In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was enacted. The CARES Act contains many provisions related to banking, lending, mortgage forbearance and taxation. Since March 2020, the Company has continued to work diligently to help support its existing and new customers through the SBA Paycheck Protection Program ("PPP"), loan modifications, loan deferrals and fee waivers. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Economic Aid Act") became law. The Economic Aid Act opened a new PPP loan period for first loans and implemented a second loan draw for certain PPP borrowers, each through May 31, 2021. Under the first round the Company funded 854 PPP loans totaling $95.1 million. As of September 30, 2021, 831 of these first round PPP loans totaling $88.9 million were forgiven under the SBA forgiveness program. Under the second round of PPP the Company funded 985 PPP loans totaling $88.4 million as of September 30, 2021. As of September 30, 2021, 304 of the second round PPP loans totaling $18.6 million have been forgiven under the SBA forgiveness program. The Bank also continues to work with our customers affected by COVID-19 through payment accommodations on their loans. Borrowers who were current prior to becoming affected by COVID-19, that received payment accommodations as a result of the pandemic, generally are not reported as past due. Effects of COVID-19 may negatively impact management assumptions and estimates, such as the allowance for loan losses. The Bank continues to evaluate all payment accommodations to customers to identify and quantify any impact they might have on the Bank. However, it is difficult to assess or predict how and to what extent COVID-19 will affect the Company in the future. On January 4, 2021, Quaint Oak Bank, the wholly-owned subsidiary of Quaint Oak Bancorp, Inc., invested $3.0 million for a 51% majority ownership interest in Oakmont Capital Holdings, LLC ("Oakmont"), a multi-state equipment finance company based in West Chester, Pennsylvania with a second significant facility located in Albany, Minnesota. Oakmont has been providing commercial equipment financing and working capital throughout all 50 states since 1998. Quaint Oak Bank and Oakmont have had an existing business relationship since 2015. The investment in Oakmont provides additional financial resources to support Oakmont's national expansion plans within the equipment finance industry as well as support an expansion of Oakmont's business lines, while adding an equipment finance company to Quaint Oak Bank's subsidiary companies. The financial results that follow include Quaint Oak Bank's investment in Oakmont. Net income amounted to $1.8 million for the three months ended September 30, 2021, an increase of $774,000, or 76.8%, compared to net income of $1.0 million for the three months ended September 30, 2020. The increase in net income on a comparative quarterly basis was primarily the result of an increase in net interest income of $2.1 million and an increase in non-interest income of $1.7 million, partially offset by an increase in non-interest expense of $2.3 million, an increase in the provision for income taxes of $306,000, and an increase in the provision for loan losses of $356,000. The $2.1 million or 74.9% increase in net interest income for the three months ended September 30, 2021 over the comparable period in 2020 was driven by a $1.8 million, or 42.5%, increase in interest income. The increase in interest income was primarily due to a $128.0 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $360.5 million for the three months ended September 30, 2020 to an average balance of $488.5 million for the three months ended September 30, 2021, and had the effect of increasing interest income $1.4 million. Also contributing to the increase in interest income was a 36 basis point increase in the yield on average loans receivable, net, including loans held for sale, which increased from 4.51% for the three months ended September 30, 2020 to 4.87% for the three months ended September 30, 2021, and had the effect of increasing interest income $442,000.   The increase in yield was primarily due to the increase in amortization of deferred loan fees related to forgiven PPP loans. The $354,000, or 26.1%, decrease in interest expense was primarily attributable to an 82 basis point decrease in rate on average certificate of deposit accounts, which decreased from 1.86% for the three months ended September 30, 2020 to 1.04% for the three months ended September 30, 2021, and had the effect of decreasing interest expense by $344,000. Interest expense on deposits continues to be actively managed to lower our cost of funds. This decrease was also partially attributable to a $29.8 million decrease in average certificate of deposit accounts which decreased from an average balance of $198.0 million for the three months ended September 30, 2020 to an average balance of $168.2 million for the three months ended September 30, 2021, and had the effect of decreasing interest expense $138,000. This decrease in interest expense was partially offset by a $139.8 million increase in average money market accounts which increased from an average balance of $52.7 million for the three months ended September 30, 2020 to an average balance of $192.5 million for the three months ended September 30, 2021, and had the effect of increasing interest expense by $294,000. This increase in money market interest expense was partially offset by a 29 basis point decrease in the rate on average money market accounts, which decreased from 0.84% for the three months ended September 30, 2020 to 0.55% for the three months ended September 30, 2021, and had the effect of decreasing interest expense by $142,000. The average interest rate spread increased from 2.58% for the three months ended September 30, 2020 to 3.62% for the three months ended September 30, 2021 while the net interest margin increased from 2.84% for the three months ended September 30, 2020 to 3.82% for the three months ended September 30, 2021.   The $356,000, or 177.1%, increase in the provision for loan losses for the three months ended September 30, 2021 over the three months ended September 30, 2020 was based on an evaluation of the allowance relative to such factors as volume of the loan portfolio, concentrations of credit risk, prevailing economic conditions, which includes the impact of the COVID-19 pandemic, prior loan loss experience and amount of non-performing loans at September 30, 2021. The $1.7 million, or 90.7%, increase in non-interest income for the three months ended September 30, 2021 over the comparable period in 2020 was primarily attributable to a $657,000, or 54.3%, increase in net gain on loans held for sale, a $475,000 increase in loan servicing income, a $350,000 increase in gain on sales from SBA loans, a $204,000, or 51.0%, increase in mortgage banking, equipment lending, and title abstract fees, a $110,000 increase in net gains on sale and write-downs of other real estate owned, an $11,000, or 16.2%, increase in real estate sales commissions, net and a $3,000, or 2.3%, increase in insurance commissions. The increases in net gain on loans held for sale, loan servicing income, and mortgage banking, equipment lending, and title abstract fees were primarily attributable to Oakmont's results for the three months ended September 30, 2021. These increases were partially offset by a $106,000, or 73.6%, decrease in other fees and service charges. The $2.3 million, or 72.7%, increase in non-interest expense for the three months ended September 30, 2021 over the comparable period in 2020 was primarily due to a $2.0 million, or 91.1%, increase in salaries and employee benefits expense, a $128,000, or 51.0%, increase in occupancy and equipment expense, a $67,000, or 25.9%, increase in other expense, a $59,000, or 155.3%, increase in FDIC deposit insurance assessment, a $57,000, or 32.2%, increase in data processing expense, and a $35,000, or 46.7%, increase in advertising expense. The increase in salaries and employee benefits is primarily due to generally expanding and improving the level of staff at the Bank and its subsidiary companies, including Oakmont. Oakmont's results for the three months ended September 30, 2021 also contributed to the increases in occupancy and equipment expense, professional fees, and advertising expense. The increase in non-interest expense was partially offset by a $9,000, or 81.8%, decrease in other real estate owned expense, a $5,000, or 4.5%, decrease in professional fees and a $3,000, or 4.9%, decrease in Directors' fees and expenses. The provision for income tax increased $306,000, or 77.3%, from $396,000 for the three months ended September 30, 2020 to $702,000 for the three months ended September 30, 2021 due primarily to the increase in pre-tax income. Net income amounted to $4.3 million for the nine months ended September 30, 2021, an increase of $2.2 million, or 99.0%, compared to net income of $2.2 million for the nine months ended September 30, 2020. The increase in net income was primarily the result of an increase in net interest income of $5.6 million and an increase in non-interest income of $4.3 million, partially offset by an increase in non-interest expense of $6.3 million, an increase in the provision for income taxes of $827,000, and an increase in the provision for loan losses of $638,000. The $5.6 million or 72.3% increase in net interest income for the nine months ended September 30, 2021 over the comparable period in 2020 was driven by a $4.8 million, or 40.4%, increase in interest income. The increase in interest income was primarily due to a $167.8 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $311.1 million for the nine months ended September 30, 2020 to an average balance of $478.9 million for the nine months ended September 30, 2021, and had the effect of increasing interest income $6.2 million. This increase in interest income was partially offset by a 33 basis point decrease in the yield on average loans receivable, net, including loans held for sale, which decreased from 4.90% for the nine months ended September 30, 2020 to 4.57% for the nine months ended September 30, 2021, and had the effect of decreasing interest income $1.2 million. The decline in loan yield is primarily the result of lower yielding PPP loans funded from the second quarter of 2020 through the second quarter of 2021 and the impact of the Federal Reserve's 150 basis point rate cuts in March 2020, partially offset by the increase in the amortization of deferred loan fees related to forgiven PPP loans. The $791,000, or 19.0%, decrease in interest expense was primarily attributable to a 90 basis point decrease in rate on average certificate of deposit accounts, which decreased from 2.07% for the nine months ended September 30, 2020 to 1.17% for the nine months ended September 30, 2021, and had the effect of decreasing interest expense by $1.2 million. Interest expense on deposits continues to be actively managed to lower our cost of funds. Also contributing to this decrease was a $13.1 million decrease in average certificate of deposit accounts which decreased from an average balance of $192.7 million for the nine months ended September 30, 2020 to an average balance of $179.6 million for the nine months ended September 30, 2021, and had the effect of decreasing interest expense $204,000. This decrease in interest expense was partially offset by a $129.1 million increase in average money market accounts which increased from an average balance of $37.7 million for the nine months ended September 30, 2020 to an average balance of $166.8 million for the nine months ended September 30, 2021, and had the effect of increasing interest expense by $793,000. This increase in money market interest expense was partially offset by a 19 basis point decrease in the rate on average money market accounts, which decreased from 0.82% for the nine months ended September 30, 2020 to 0.63% for the nine months ended September 30, 2021, and had the effect of decreasing interest expense by $234,000. The decrease in interest expense was also partially offset by an increase in average other borrowings of $4.0 million which had the effect of increasing interest expense by $127,000. The average interest rate spread increased from 2.68% for the nine months ended September 30, 2020 to 3.20% for the nine months ended September 30, 2021, while the net interest margin increased from 2.97% for the nine months ended September 30, 2020 to 3.41% for the nine months ended September 30, 2021. The $638,000, or 102.7%, increase in the provision for loan losses for the nine months ended September 30, 2021 over the nine months ended September 30, 2020 was based on an evaluation of the allowance relative to such factors as volume of the loan portfolio, concentrations of credit risk, prevailing economic conditions, which includes the impact of the COVID-19 pandemic, prior loan loss experience and amount of non-performing loans at September 30, 2021. The $4.3 million, or 95.1%, increase in non-interest income for the nine months ended September 30, 2021 over the comparable period in 2020 was primarily attributable to a $1.6 million, or 56.8%, increase in net gain on loans held for sale, a $1.0 million increase in loan servicing income, a $612,000, or 58.6%, increase in mortgage banking, equipment lending, and title abstract fees, a $565,000, or 795.8%, increase in gain on sales from SBA loans, a $362,000 gain on sale of investment securities available for sale, a $92,000 increase in net gains on sale and write-downs of other real estate owned, a $33,000, or 18.5%, increase in other fees and service charges, a $26,000, or 7.5%, increase in insurance commissions, and a $12,000, or 9.2%, increase in real estate sales commissions, net. The increases in net gain on loans held for sale, loan servicing income, and mortgage banking, equipment lending, and title abstract fees were primarily attributable to Oakmont's results for the nine months ended September 30, 2021. The increase in other fees and service charges was primarily due to the increase in loan prepayment fees. The $6.3 million, or 72.9%, increase in non-interest expense for the nine months ended September 30, 2021 over the comparable period in 2020 was primarily due to a $5.0 million, or 85.2%, increase in salaries and employee benefits expense, a $470,000, or 69.8%, increase in occupancy and equipment expense, a $260,000, or 36.4%, increase in other expense, a $167,000, or 35.2%, increase in data processing expense, a $149,000, or 44.0%, increase in professional fees, a $136,000, or 160.0%, increase in FDIC deposit insurance assessment, a $113,000, or 50.4%, increase in advertising expense, and an $11,000, or 6.3%, increase in Directors' fees and expenses. The increase in salaries and employee benefits is primarily due to generally expanding and improving the level of staff at the Bank and its subsidiary companies, including Oakmont. Oakmont's results for the nine months ended September 30, 2021 also contributed to the increases in occupancy and equipment expense, professional fees, and advertising expense.   The increase in non-interest expense was partially offset by a $20,000, or 58.8%, decrease in other real estate owned expense. The provision for income tax increased $827,000, or 95.5%, from $866,000 for the nine months ended September 30, 2020 to $1.7 million for the nine months ended September 30, 2021 due primarily to the increase in pre-tax income. The Company's total assets at September 30, 2021 were $535.9 million, an increase of $51.8 million, or 10.7%, from $484.1 million at December 31, 2020.   This growth in total assets was primarily due to a $53.6 million, or 100.8%, increase in loans held for sale, and a $22.6 million, or 6.3%, increase in loans receivable, net. These increases were partially offset by a $19.6 million, or 57.8%, decrease in cash and cash equivalents and a $6.4 million, or 59.8%, decrease in investment securities available for sale at fair value. The largest increases within the loan portfolio occurred in commercial real estate which increased $24.9 million, or 18.9%, construction loans which increased $8.8 million, or 183.5%, one-to-four family non-owner occupied loans which increased $3.2 million, or 8.3%, and one-to-four family owner occupied loans which increased $2.7 million, or 35.2%. The increases within the loan portfolio were partially offset by commercial business loans which decreased $15.7 million, or 10.2%. Loans held for sale increased $53.6 million, or 100.8%, from $53.2 million at December 31, 2020 to $106.8 million at September 30, 2021 as the Bank's mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $162.0 million of one-to-four family residential loans during the nine months ended September 30, 2021 and sold $184.4 million of loans in the secondary market during this same period. Additionally, the Bank reclassified $17.4 million of equipment loans from loans receivable, net, to loans held for sale, received $9.8 million of loans held for sale from the formation of Oakmont Capital Holdings LLC, and originated $98.4 million in equipment loans held for sale during the nine months ended September 30, 2021. During the nine months ended September 30, 2021 the Company sold $49.6 million of equipment loans.        Total deposits increased $80.7 million, or 22.7%, to $435.5 million at September 30, 2021 from $354.8 million at December 31, 2020. This increase in deposits was primarily attributable to increases of $91.7 million, or 92.0%, in money market accounts, and $19.4 million, or 35.7%, in non-interest bearing checking accounts. The increase in deposits was partially offset by a $30.6 million, or 15.3%, decrease in certificates of deposit. The increase in non-interest bearing checking accounts was primarily due to the checking accounts opened by PPP loan customers.   Total Federal Home Loan Bank (FHLB) borrowings increased $7.0 million, or 18.3%, to $45.2 million at September 30, 2021 from $38.2 million at December 31, 2020. During the nine months ended September 30, 2021, the Company used excess liquidity to pay down $10.0 million of FHLB short-term and $4.0 million of FHLB long-term borrowings. During the second and third quarters of 2021, the Company borrowed $10.0 million and $11.0 million, respectively, of short-term FHLB advances to provide additional liquidity in anticipation of loan funding needs. Federal Reserve Bank (FRB) long-term borrowings decreased $43.2 million, or 89.7%, to $5.0 million at September 30, 2021 from $48.1 million at December 31, 2020 as the Company paid off PPP loans pledged as collateral under the FRB's Paycheck Protection Program Liquidity Facility (PPPLF). The Company did not utilize the FRB's PPPLF to fund second round PPP loans. Other short-term borrowings increased to $933,000 at September 30, 2021 from none at December 31, 2020. Total stockholders' equity increased $6.3 million, or 21.9%, to $35.0 million at September 30, 2021 from $28.7 million at December 31, 2020. Contributing to the increase was noncontrolling interest of $2.2 million, net income for the nine months ended September 30, 2021 of $4.3 million, common stock earned by participants in the employee stock ownership plan of $187,000, amortization of stock awards and options under our stock compensation plans of $126,000, the reissuance of treasury stock for exercised stock options of $87,000, and the reissuance of treasury stock under the Bank's 401(k) Plan of $52,000 and net gain attributable to noncontrolling interest of $12,000. These increases were partially offset by dividends paid of $618,000, other comprehensive loss, net of $84,000, and the purchase of treasury stock of $25,000.        Non-performing loans amounted to $1.7 million, or 0.45%, of net loans receivable at September 30, 2021, one loan of which was on non-accrual status and one loan was 90 days or more past due and accruing interest. Comparably, non-performing loans amounted to $643,000 or 0.18% of net loans receivable at December 31, 2020, consisting of five loans, two loans of which were on non-accrual status and three loans were 90 days or more past due and accruing interest. The non-performing loans at September 30, 2021 include one one-to-four family residential non-owner occupied and one multi-family residential loan, and both are generally well-collateralized or adequately reserved for. The allowance for loan losses as a percent of total loans receivable, net was 1.13% at September 30, 2021 and 0.85% at December 31, 2020. Excluding PPP loans, which are 100% guaranteed by the SBA, the allowance for loan losses to total loans was 1.41% at September 30, 2021. Other real estate owned (OREO) amounted to $489,000 at September 30, 2021 consisting of one property that is collateral for a non-performing construction loan. During the nine months ended September 30, 2021, the Company made $203,000 of capital improvements to the property. Non-performing assets amounted to $2.2 million, or 0.41% of total assets at September 30, 2021 compared to $929,000, or 0.19% of total assets at December 31, 2020. Quaint Oak Bancorp, Inc. is the parent company for the Quaint Oak Family of Companies. Quaint Oak Bank, a Pennsylvania-chartered stock savings bank and wholly-owned subsidiary of the Company, is headquartered in Southampton, Pennsylvania and conducts business through three regional offices located in the Delaware Valley, Lehigh Valley and Philadelphia markets. Quaint Oak Bank's subsidiary companies include Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, Quaint Oak Mortgage, LLC and Quaint Oak Real Estate, LLC. These subsidiary companies conduct business from numerous locations within the Bank's market area. As of January 4, 2021, the Bank holds a majority equity position in Oakmont Capital Holdings, LLC, a multi-state equipment finance company based in West Chester, Pennsylvania with a second significant facility located in Albany, Minnesota. Oakmont's third quarter and year-to-date results are incorporated in the financial statements below. In October 2021, the Company formed Oakmont Commercial, LLC, a wholly-owned subsidiary of Quaint Oak Bank. This subsidiary will be based in Southampton, Pennsylvania and will operate as a multi-state specialty commercial real estate financing company. Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Factors which could result in material variations include, but are not limited to, changes in interest rates which could affect net interest margins and net interest income, competitive factors which could affect net interest income and noninterest income, changes in demand for loans, deposits and other financial services in the Company's market area; changes in asset quality, general economic conditions as well as other factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; the scope and duration of the COVID-19 pandemic; the effects of the COVID-19 pandemic, including on the Company's credit quality and operations as well as its impact on general economic conditions; legislative and regulatory changes including actions taken by governmental authorities in response to the COVID-19 pandemic; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, in each case as may be affected by the COVID-19 pandemic, competition, changes in the quality or composition of the Company's loan, investment and mortgage-backed securities portfolios; geographic concentration of the Company's business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and fees. QUAINT OAK BANCORP, INC. Consolidated Balance Sheets (In Thousands)   At September 30,   At December 31,    2021    2020    (Unaudited)   (Unaudited)  Assets           Cash and cash equivalents $14,316   $33,913   Investment in interest-earning time deposits   7,892     9,463   Investment securities available for sale at fair value   4,312     10,725   Loans held for sale   106,828     53,191   Loans receivable, net of allowance for loan losses (2021: $4,303; 2020: $3,061)            381,690     359,122   Accrued interest receivable   3,338     3,054   Investment in Federal Home Loan Bank stock, at cost   2,018     1,665   Bank-owned life insurance   4,115     4,054   Premises and equipment, net   2,550     2,341   Goodwill   3,107     515   Other intangible, net of accumulated amortization   234     271   Other real estate owned, net   489     286   Prepaid expenses and other assets        4,977     5,475         Total Assets   $535,866     $484,075        .....»»

Category: earningsSource: benzingaOct 30th, 2021

China Widens Property-Tax Trials With Levy on Home Owners

Property prices in China have skyrocketed to unaffordable levels since private home ownership was introduced in 1998 China’s State Council will expand property-tax reform trials to more areas and start taxing residential property owners, official news agency Xinhua reported. The plan, approved by the National People’s Congress Standing Committee, China’s top legislative body, is designed to guide rational property buying and will last for five years, according to the report. The locations and number of areas where the trials will be undertaken were not specified. Property prices in China have skyrocketed to unaffordable levels since private home ownership was introduced in 1998, and the government has faced an ongoing battle to control speculators. Authorities started property tax trials in 2011 in Shanghai and Chongqing, levying annual charges on second or high-priced homes. [time-brightcove not-tgx=”true”] READ: Why China Could Be Serious About a Property Tax Now: QuickTake Residences owned by individuals are currently not subject to taxes, according to a law imposed in 1986, while there is an annual tax on commercial properties. Local governments earn income from developers mainly through land sales, collecting a total of 8.4 trillion yuan ($1.3 trillion) last year. Industry experts say details of the plan are unclear so far. “We don’t know yet what the differences will be in this plan than in the current trials in Shanghai and Chongqing, but it’s likely to have something new,” said Liu Yuan, vice president for property research at Centaline Group. “The government may not want to make all the details public immediately for the sake of expectation management. But I think this aims at hedging the ongoing property-market supportive measures so home prices won’t rebound again.” China’s new-home prices fell for the first time in six years and sales plunged 16.9% in September from a year earlier, as the country’s second-largest real estate developer, Evergrande Group, plunged into a debt crisis, which led to a property slowdown nationwide. The country recently loosened restrictions on home loans at some of its largest banks, Bloomberg reported on Oct. 15. (Adds analysis from an industry research firm starting in the fifth paragraph.) –With assistance from Jacob Gu. © 2021 Bloomberg L.P......»»

Category: topSource: timeOct 23rd, 2021

Great Southern Bancorp, Inc. Reports Preliminary Third Quarter Earnings of $1.49 Per Diluted Common Share

Preliminary Financial Results and Other Matters for the Quarter and Nine Months Ended September 30, 2021: CECL Adoption: As previously disclosed, effective January 1, 2021, Great Southern Bancorp, Inc. (the Company) adopted the Current Expected Credit Loss (CECL) accounting standard. The Company's financial statements for periods prior to January 1, 2021, were prepared under the incurred loss accounting standard. The adoption of the CECL accounting standard during the first quarter of 2021 required us to recognize a one-time cumulative adjustment to our allowance for credit losses and a liability for potential losses related to the unfunded portion of our loans and commitments in order to fully transition from the incurred loss model to the CECL model. Significant Income and Expense Items: During the three months ended September 30, 2021, the Company recorded interest income of $1.6 million related to net deferred fee income accretion on Paycheck Protection Program (PPP) loans. Net fees are accreted over the loan term with remaining deferred fees recorded in interest income when the loans pay off by the borrower or by the Small Business Administration (SBA) when they are forgiven. During the first and second quarter of 2021, almost all of the remaining loans from the original round of PPP were repaid by the SBA in accordance with the borrower forgiveness terms of the PPP. We expect more PPP loans from the most recent round of PPP will repay in full during the fourth quarter of 2021. At September 30, 2021, remaining net deferred fees related to PPP loans totaled $2.1 million. In addition, for the three months ended September 30, 2021, based upon the Company's assumptions, estimates and CECL credit loss methodology, the Company recorded a negative provision for credit losses of $3.0 million related to its outstanding loans. This negative provision was mainly the result of declining outstanding loan balances, continued low levels of net charge-offs and an improving economic outlook. The Company also recorded a provision expense for unfunded commitments of $643,000. The after-tax effect of these net credit provision items on earnings was $0.13 per diluted share. Total Loans: Total gross loans (including the undisbursed portion of loans), excluding FDIC-assisted acquired loans and mortgage loans held for sale, decreased $210.0 million, or 4.1%, from December 31, 2020, to September 30, 2021. This decrease was primarily in other residential (multi-family) loans, commercial business loans, commercial real estate loans and consumer auto loans. This decrease was partially offset by increases in construction loans and single family real estate loans. The FDIC-assisted acquired loan portfolios decreased $19.1 million during the nine months ended September 30, 2021. Outstanding net loan receivable balances decreased $271.1 million, from $4.30 billion at December 31, 2020 to $4.03 billion at September 30, 2021. Asset Quality: Non-performing assets and potential problem loans, including those acquired in FDIC-assisted transactions, totaled $11.7 million at September 30, 2021, a decrease of $1.6 million from $13.3 million at June 30, 2021 and a decrease of $2.3 million from $14.0 million at December 31, 2020. At September 30, 2021, non-performing assets, including those acquired in FDIC-assisted transactions, were $7.9 million (0.15% of total assets), a decrease of $636,000 from $8.6 million (0.15% of total assets) at June 30, 2021 and a decrease of $171,000 from $8.1 million (0.14% of total assets) at December 31, 2020. Excluding FDIC-assisted acquired assets, non-performing assets and potential problem loans totaled $8.0 million (0.15% of total assets) at September 30, 2021, and non-performing assets were $5.2 million (0.10% of total assets). Net Interest Income: Net interest income for the third quarter of 2021 increased $755,000 (or approximately 1.7%) to $44.9 million compared to $44.2 million for the third quarter of 2020. Net interest income was $44.7 million for the second quarter of 2021. Net interest margin was 3.36% for each of the quarters ended September 30, 2021 and September 30, 2020. The positive impact on net interest margin from the additional yield accretion on acquired loan pools that was recorded during the periods was two and nine basis points for the quarters ended September 30, 2021 and September 30, 2020, respectively. Core net interest margin, which excludes the impact of the yield accretion, was 3.34% and 3.27% for the three months ended September 30, 2021 and 2020, respectively. For further discussion of the additional yield accretion of the discount on acquired loan pools, see "Net Interest Income." Capital: The capital position of the Company continues to be strong, significantly exceeding the thresholds established by regulators. On a preliminary basis, as of September 30, 2021, the Company's Tier 1 Leverage Ratio was 11.0%, Common Equity Tier 1 Capital Ratio was 13.4%, Tier 1 Capital Ratio was 14.0%, and Total Capital Ratio was 16.9%. SPRINGFIELD, Mo., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Great Southern Bancorp, Inc. (NASDAQ:GSBC), the holding company for Great Southern Bank, today reported that preliminary earnings for the three months ended September 30, 2021, were $1.49 per diluted common share ($20.4 million available to common shareholders) compared to $0.96 per diluted common share ($13.5 million available to common shareholders) for the three months ended September 30, 2020. Preliminary earnings for the nine months ended September 30, 2021, were $4.32 per diluted common share ($59.3 million available to common shareholders) compared to $2.93 per diluted common share ($41.5 million available to common shareholders) for the nine months ended September 30, 2020. For the quarter ended September 30, 2021, annualized return on average common equity was 12.82%, annualized return on average assets was 1.47%, and annualized net interest margin was 3.36%, compared to 8.48%, 0.98% and 3.36%, respectively, for the quarter ended September 30, 2020. For the nine months ended September 30, 2021, annualized return on average common equity was 12.61%, return on average assets was 1.43%, and annualized net interest margin was 3.37%, compared to 8.94%, 1.05% and 3.52%, respectively, for the nine months ended September 30, 2020.     Great Southern President and CEO Joseph W. Turner commented, "We are pleased with our third quarter earnings and continued strong financial position, which reflects our associates' ongoing commitment to take care of our customers in this uncertain health and economic environment. While overall economic conditions continue to show signs of improvement, uncertainty remains regarding the timing and magnitude of the recovery. In the third quarter of 2021, we earned $20.4 million ($1.49 per diluted common share), compared to $13.5 million ($0.96 per diluted common share) for the same period in 2020. Increased earnings were driven by a negative credit loss provision for our funded loan portfolio; higher net interest income, primarily driven by reduced deposit costs and PPP loan net deferred fee income recognition; and increased non-interest income, mainly related to point-of-sale debit card and ATM fees. Importantly, our pre-provision net revenue continues to be strong. As noted above, we recognized significant deferred fee income related to repaid PPP loans in this third quarter, and we expect that we will recognize a significant portion of the remaining PPP fee income in the fourth quarter of 2021. Earnings performance ratios were solid, with an annualized return on average assets of 1.47%, annualized return on average equity of 12.82%, and efficiency ratio of 57.27%. While our net interest margin has been somewhat pressured by increased deposits and resulting changes in asset mix, net interest income was $133.7 million in the first nine months of 2021, up from $132.6 million in the same timeframe of 2020. "Thus far in 2021, loan production and activity in our markets has been quite vigorous, but loan repayments, including customers refinancing or selling stabilized projects that collateralize loans or completing the process of debt forgiveness for PPP loans, have created significant headwinds. Outstanding loan totals have decreased $271 million compared to outstanding loans at December 31, 2020, with $222 million of this decrease in our multi-family loans category. Our pipeline of loan commitments and unfunded loans remains strong and increased by about $100 million from the end of the second quarter of 2021. This type of lending environment can be a dangerous time for banks. Like credit cycles in the past, we recognize the current short-term growth challenges and won't stretch our credit structure discipline for the sake of loan growth. We manage for the long-term, and understand that we will have periodic ebbs in our loan growth." Turner added, "Credit quality metrics remained excellent during the third quarter. For the first nine months of 2021, net charge-offs were $9,000. At September 30, 2021, excluding FDIC-assisted acquired assets, non-performing assets were $5.2 million, a decrease of $325,000 from June 30, 2021. Non-performing assets to period-end assets were 0.10% at the end of the third quarter. Pandemic-related loan modifications totaled $40 million at the end of September 2021, down from $92 million at the end of June 2021 and $251 million at December 31, 2020. "With our strong capital position and in our effort to enhance long-term shareholder value, the Company repurchased approximately 307,000 shares at an average price of $53.13 during the third quarter of 2021. Year-to-date through September 30, 2021, stock repurchases totaled approximately 449,000 shares at an average price of $52.89. We currently have about 485,000 shares remaining in our existing stock repurchase authorization. Additionally, in August 2021, we completed our previously announced redemption of $75 million of subordinated notes."    COVID-19 Impact to Our Business and Response Great Southern is actively monitoring and responding to the effects of the COVID-19 pandemic, including the administration of vaccines in our local markets. As always, the health, safety and well-being of our customers, associates and communities, while maintaining uninterrupted service, are the Company's top priorities. Centers for Disease Control and Prevention (CDC) guidelines, as well as directives from federal, state and local officials, are being closely followed to make informed operational decisions. The Company continues to work diligently with its nearly 1,200 associates to enforce the most current health, hygiene and social distancing practices. Teams in nearly every operational department have been split, with part of each team working at an off-site disaster recovery facility to promote social distancing and to avoid service disruptions. To date, there have been no service disruptions or reductions in staffing. With the advent of COVID-19 vaccinations in the Company's markets, plans are being considered to allow associates working from home or other sites to return to their normal workplace beginning in the fourth quarter of 2021, dependent on health and safety conditions. As always, customers can conduct their banking business using the banking center network, online and mobile banking services, ATMs, Telephone Banking, and online account opening services. As health conditions in local markets dictate, Great Southern banking center lobbies are open following social distancing and health protocols. Great Southern continues to work with customers experiencing hardships caused by the pandemic. As a resource to customers, a COVID-19 information center continues to be available on the Company's website, www.GreatSouthernBank.com. General information about the Company's pandemic response, how to receive assistance, and how to avoid COVID-19 scams and fraud are included. Paycheck Protection Program Loans Great Southern has actively participated in the PPP through the SBA. The PPP has been met with very high demand throughout the country, resulting in a second round of funding in 2021 through an amendment to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In the first round of the PPP, we originated approximately 1,600 PPP loans, totaling approximately $121 million. As of September 30, 2021, full forgiveness proceeds have been received from the SBA for almost all of these PPP loans. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act authorized the reopening of the PPP for eligible first-draw and second-draw borrowers which began on January 19, 2021, and had an original expiration date of March 31, 2021. On March 30, 2021, the PPP Extension Act of 2021 was signed, extending the PPP an additional two months to May 31, 2021, along with an additional 30-day period for the SBA to process applications that were still pending as of May 31, 2021. In the second round of the PPP, we funded approximately 1,650 PPP loans, totaling approximately $58 million. As of October 11, 2021, full forgiveness proceeds have been received from the SBA for 829 of these PPP loans, totaling approximately $26 million. Great Southern receives fees from the SBA for originating PPP loans based on the amount of each loan. At September 30, 2021, remaining net deferred fees related to PPP loans totaled $2.1 million. The fees, net of origination costs, are deferred in accordance with standard accounting practices and will be accreted to interest income on loans over the contractual life of each loan. These loans generally have a contractual maturity of two years from origination date, but may be repaid or forgiven (by the SBA) sooner. If these loans are repaid or forgiven prior to their contractual maturity date, the remaining deferred fee for such loans will be accreted to interest income immediately. We expect a significant portion of these remaining net deferred fees will accrete to interest income during the remainder of 2021, with little of this income being recognized in 2022. In the three and nine months ended September 30, 2021, Great Southern recorded approximately $1.6 million and $3.9 million, respectively, of net deferred fees in interest income on PPP loans. Loan Modifications At September 30, 2021, we had remaining eight modified commercial loans with an aggregate principal balance outstanding of $38 million and 16 modified consumer and mortgage loans with an aggregate principal balance outstanding of $2 million. These balances have decreased from $233 million and $18 million, respectively, for these loan categories at December 31, 2020. The loan modifications are within the guidance provided by the CARES Act, the federal banking regulatory agencies, the Securities and Exchange Commission and the Financial Accounting Standards Board (FASB); therefore, they are not considered troubled debt restructurings. At September 30, 2021, the largest total modified loans by collateral type were in the following categories: healthcare - $12 million; hotel/motel - $11 million; retail - $8 million; office - $7 million. A portion of the loans modified at September 30, 2021, may be further modified, and new loans may be modified, within the guidance provided by the CARES Act (and subsequent legislation enacted in December 2020), the federal banking regulatory agencies, the SEC and the FASB if a more severe or lengthier deterioration in economic conditions occurs in future periods. Selected Financial Data: (In thousands, except per share data)   Three Months EndedSeptember 30,   Nine Months EndedSeptember 30,       2021     2020     2021     2020 Net interest income   $ 44,923   $ 44,168   $ 133,695   $ 132,561 Provision (credit) for credit losses on loans and unfunded commitments     (2,357 )   4,500     (4,039 )   14,371 Non-interest income     9,798     9,466     29,119     25,093 Non-interest expense     31,339     31,988     91,852     92,151 Provision for income taxes     5,375     3,692     15,655     9,607 Net income and net income available to common shareholders   $ 20,364   $ 13,454   $ 59,346   $ 41,525                           Earnings per diluted common share   $ 1.49   $ 0.96   $ 4.32   $ 2.93 NET INTEREST INCOME Net interest income for the third quarter of 2021 increased $755,000 to $44.9 million, compared to $44.2 million for the third quarter of 2020.   Net interest margin was 3.36% in both the third quarter of 2021 and the third quarter of 2020. For the three months ended September 30, 2021, net interest margin increased one basis point compared to the net interest margin of 3.35% in the three months ended June 30, 2021. In comparing the 2021 and 2020 third quarter periods, the average yield on loans decreased 11 basis points while the average rate on interest-bearing deposits declined 46 basis points. The margin compression resulted from changes in the asset mix, with average cash equivalents increasing $333 million and average investment securities increasing $4 million, while average loans decreased $266 million. Without this additional liquidity, the net interest margin would have been 23 basis points higher. In addition, the yield accretion on FDIC-assisted acquired loans was seven basis points less during the third quarter of 2021 compared to the third quarter of 2020. The average interest rate spread was 3.22% for the three months ended September 30, 2021, compared to 3.12% for the three months ended September 30, 2020 and 3.18% for the three months ended June 30, 2021. Net interest income for the nine months ended September 30, 2021 increased $1.1 million to $133.7 million compared to $132.6 million for the nine months ended September 30, 2020. Net interest margin was 3.37% in the nine months ended September 30, 2021, compared to 3.52% in the same period of 2020, a decrease of 15 basis points. The decrease in the margin between the nine months ended September 30, 2021 and the nine months ended September 30, 2020, was primarily due to the same factors as discussed above for the comparison of the current year third quarter margin to the prior year third quarter margin, with average cash equivalents increasing $286 million and average investment securities increasing $20 million. Without this additional liquidity, the net interest margin would have been 21 basis points higher in the nine months ended September 30, 2021. In addition, the yield accretion on FDIC-assisted acquired loans was nine basis points lower during the first nine months of 2021 compared to the same period in 2020. The average interest rate spread was 3.20% for the nine months ended September 30, 2021, compared to 3.24% for the nine months ended September 30, 2020. Also, the increase in interest cost from the subordinated notes issued in June 2020, net of the decrease in interest cost from the redemption of the subordinated notes issued in 2016, resulted in a decrease in net interest income of $1.4 million in the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. Additionally, the Company's net interest income included accretion of net deferred fees related to PPP loans originated in 2020 and 2021. The amount of net deferred fees recognized in interest income was $1.6 million in the three months ended September 30, 2021 compared to $1.1 million in the three months ended June 30, 2021 and $1.2 million in the three months ended March 31, 2021. The amount of net deferred fees recognized in interest income was $3.9 million and $1.0 million in the nine months ended September 30, 2021 and 2020, respectively. The amount of net deferred fees on PPP loans in the 2021 nine month period was greater than the 2020 nine month period due to loan forgiveness and repayments being received only during the three month period ended September 30, 2020 compared to the entire nine month period during 2021. In October 2018, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap was $400 million with a contractual termination date in October 2025. As previously disclosed by the Company, on March 2, 2020, the Company and its swap counterparty mutually agreed to terminate this swap, effective immediately. The Company received a payment of $45.9 million, including accrued but unpaid interest, from its swap counterparty as a result of this termination. This $45.9 million, less the accrued to date interest portion and net of deferred income taxes, is reflected in the Company's stockholders' equity as Accumulated Other Comprehensive Income and is being accreted to interest income on loans monthly through the original contractual termination date of October 6, 2025. The Company recorded interest income related to the swap of $2.0 million and $2.0 million in the three months ended September 30, 2021 and 2020, respectively. The Company recorded interest income related to the swap of $6.1 million and $5.6 million in the nine months ended September 30, 2021 and 2020, respectively. The Company currently expects to have a sufficient amount of eligible variable rate loans to continue to accrete this interest income ratably in future periods. If this expectation changes and the amount of eligible variable rate loans decreases significantly, the Company may be required to recognize this interest income more rapidly. Previously, the Company's net interest income and margin have been positively impacted by significant additional yield accretion recognized in conjunction with updated estimates of the fair value of the loan pools acquired in its FDIC-assisted transactions. For each of the loan portfolios acquired, the cash flow estimates increased during the prior periods, based on payment histories and reduced credit loss expectations. This resulted in increased income that has been spread, on a level-yield basis, over the remaining expected lives of the loan pools (and, therefore, has decreased over time). Because the balance of these adjustments will be recognized generally over the remaining lives of the loan pools, they will impact future periods as well. The remaining accretable yield adjustment that will affect interest income was $606,000 at September 30, 2021. Of the remaining adjustments affecting interest income, we expect to recognize $178,000 of interest income during the remainder of 2021. As previously noted, we adopted the new accounting standard related to accounting for credit losses as of January 1, 2021. With the adoption of this standard, there is no further reclassification of discounts from non-accretable to accretable subsequent to December 31, 2020. All adjustments made prior to December 31, 2020 will continue to be accreted to interest income. The impact to income of adjustments on all portfolios acquired in FDIC-assisted transactions for the reporting periods presented is shown below:   Three Months Ended   September 30, 2021   September 30, 2020                   (In thousands, except basis points data) Impact on net interest income/net interest margin (in basis points) $ 279 2 bps   $ 1,229 9 bps   Nine Months Ended   September 30, 2021   September 30, 2020                   (In thousands, except basis points data) Impact on net interest income/net interest margin (in basis points) $ 1,398 3 bps   $ 4,632 12 bps     For the three months ended September 30, 2021, core net interest margin, which excludes the impact of the additional yield accretion, was 3.34%. This was an increase of seven basis points when compared to the core net interest margin of 3.27% for the three months ended September 30, 2020. For the nine months ended September 30, 2021, core net interest margin was also 3.34%. This was a decrease of six basis points when compared to the core net interest margin of 3.40% for the nine months ended September 30, 2020. For additional information on net interest income components, see the "Average Balances, Interest Rates and Yields" tables in this release. NON-INTEREST INCOME For the quarter ended September 30, 2021, non-interest income increased $332,000 to $9.8 million when compared to the quarter ended September 30, 2020, primarily as a result of the following items: Point-of-sale and ATM fees: Point-of-sale and ATM fees increased $657,000 compared to the prior year period. This increase was primarily due to a reduction in customer usage in the third quarter of 2020 as the COVID-19 pandemic caused many businesses to close and large portions of the U. S. population were required to stay at home for a period of time. In the quarter ended September 30, 2021, debit card and ATM usage by customers was back to normal levels, and in some cases, increased levels of activity. Overdraft and Insufficient Funds Fees: Overdraft and insufficient funds fees increased $210,000 compared to the prior year period. This increase was primarily due to reduced fees in the 2020 period. This was due to both a reduction in usage by customers and a decision near the end of the first quarter of 2020 to waive (through August 31, 2020) certain fees for customers in response to the COVID-19 pandemic. The effects of that decision were felt during the second and third quarters of 2020. Net gains on loan sales: Net gains on loan sales decreased $537,000 compared to the prior year quarter. The decrease was due to a decrease in originations of fixed-rate single-family mortgage loans during the 2021 period compared to the 2020 period. Fixed rate single-family mortgage loans originated are generally subsequently sold in the secondary market. These loan originations increased substantially when market interest rates decreased to historically low levels in 2020. As a result of the significant volume of refinance activity in recent periods, and as market interest rates have moved a bit higher in the third quarter of 2021, mortgage refinance volume has decreased and loan originations and related gains on sales of these loans have returned to levels more similar to historic averages. For the nine months ended September 30, 2021, non-interest income increased $4.0 million to $29.1 million when compared to the nine months ended September 30, 2020, primarily as a result of the following items: Net gains on loan sales: Net gains on loan sales increased $2.3 million compared to the prior year period. The increase was due to an increase in originations of fixed-rate single-family mortgage loans during the 2021 period compared to the 2020 period. As noted above, these loan originations increased substantially when market interest rates decreased to historically low levels in the latter half of 2020 and the first half of 2021. Point-of-sale and ATM fees: Point-of-sale and ATM fees increased $2.2 million compared to the prior year period. This increase was due to the same conditions as noted above. Gain (loss) on derivative interest rate products: In the 2021 period, the Company recognized a gain of $340,000 on the change in fair value of its back-to-back interest rate swaps related to commercial loans. In the 2020 period, the Company recognized a loss of $424,000 on the change in fair value of its back-to-back interest rate swaps related to commercial loans. Generally, as market interest rates increase, this creates a net increase in the fair value of these instruments. This is a non-cash item as there was no required settlement of this amount between the Company and its swap counterparties. Other income: Other income decreased $1.4 million compared to the prior year period. In the 2020 period, the Company recognized approximately $1.2 million of fee income related to newly-originated interest rate swaps in the Company's back-to-back swap program with loan customers and swap counterparties, with fewer of these transactions and related fee income generated in the current period. The Company also recognized approximately $541,000 in income related to the exit of certain tax credit partnerships during the nine months ended September 30, 2020, with no similar activity during the 2021 period. NON-INTEREST EXPENSE For the quarter ended September 30, 2021, non-interest expense decreased $649,000 to $31.3 million when compared to the quarter ended September 30, 2020, primarily as a result of the following item: Salaries and employee benefits: Salaries and employee benefits decreased $867,000 from the prior year quarter. In the 2020 period, the Company paid a special cash bonus to all employees totaling $1.1 million in response to the ongoing impacts of the COVID-19 pandemic. Such bonus was not repeated in the third quarter of 2021. For the nine months ended September 30, 2021, non-interest expense decreased $299,000 to $91.9 million when compared to the nine months ended September 30, 2020, primarily as a result of the following items: Salaries and employee benefits: Salaries and employee benefits decreased $812,000 in the nine months ended September 30, 2021 compared to the prior year period. In 2020, the Company approved two special cash bonuses to all employees totaling $2.2 million in response to the COVID-19 pandemic. Such bonuses were not repeated in the nine months ended September 30, 2021. Expense on other real estate owned and repossessions: Expense on other real estate owned and repossessions decreased $473,000 compared to the prior year period primarily due to sales of most foreclosed assets and a smaller amount of repossessed automobiles in the current period, plus higher valuation write-downs of certain foreclosed assets during the prior year period. During the 2020 period, sales and valuation write-downs of certain foreclosed assets totaled a net expense of $136,000, while sales and valuation write-downs in the 2021 period totaled a net gain of $29,000. Insurance: Insurance expense increased $626,000 compared to the prior year period. This increase was primarily due to an increase in FDIC deposit insurance premiums. In 2020, the Company had a credit with the FDIC for a portion of premiums previously paid to the deposit insurance fund. The remaining deposit insurance fund credit was utilized in 2020 in addition to $522,000 in premiums being due for the nine months ended September 30, 2020, while the premium expense was $1.1 million in the nine months ended September 30, 2021. The Company's efficiency ratio for the quarter ended September 30, 2021, was 57.27% compared to 59.64% for the same quarter in 2020. The efficiency ratio for the nine months ended September 30, 2021, was 56.42% compared to 58.45% for the same period in 2020. In the three- and nine-month periods ended September 30, 2021, the improved efficiency ratio was due to an increase in net interest income, an increase in non-interest income, and a decrease in non-interest expense. The Company's ratio of non-interest expense to average assets was 2.27% and 2.22% for the three and nine months ended September 30, 2021, respectively, compared to 2.34% and 2.33% for the three and nine months ended September 30, 2020. Average assets for the three months ended September 30, 2021, increased $62.8 million, or 1.1%, compared to the three months ended September 30, 2020, primarily due to increases in investment securities and interest bearing cash equivalents, offset by a decrease in net loans receivable. Average assets for the nine months ended September 30, 2021, increased $249.3 million, or 4.7%, compared to the nine months ended September 30, 2020, primarily due to increases in investment securities and interest bearing cash equivalents, offset by a decrease in net loans receivable. INCOME TAXES For the three months ended September 30, 2021 and 2020, the Company's effective tax rate was 20.9% and 21.5%, respectively. For the nine months ended September 30, 2021 and 2020, the Company's effective tax rate was 20.9% and 18.8%, respectively. Except for the three months ended September 30, 2020, these effective rates were at or below the statutory federal tax rate of 21%, due primarily to the utilization of certain investment tax credits and to tax-exempt investments and tax-exempt loans, which reduced the Company's effective tax rate. The Company's effective tax rate may fluctuate in future periods as it is impacted by the level and timing of the Company's utilization of tax credits, the level of tax-exempt investments and loans, the amount of taxable income in various state jurisdictions and the overall level of pre-tax income. In 2020, the Company's state income tax expenses were higher than normal in various states due to the recognition of income for tax purposes related to the gain recognized on the termination of the interest rate swap. State tax expense estimates have evolved throughout 2021 as taxable income and apportionment between states have been analyzed. The Company's effective income tax rate is currently generally expected to remain at or below the statutory federal tax rate due primarily to the factors noted above. The Company currently expects its effective tax rate (combined federal and state) will be approximately 20.0% to 21.0% in future periods. CAPITAL As of September 30, 2021, total stockholders' equity and common stockholders' equity were each $624.6 million (11.5% of total assets), equivalent to a book value of $46.73 per common share. Total stockholders' equity and common stockholders' equity at December 31, 2020, were each $629.7 million (11.4% of total assets), equivalent to a book value of $45.79 per common share. At September 30, 2021, the Company's tangible common equity to tangible assets ratio was 11.4%, compared to 11.3% at December 31, 2020. Included in stockholders' equity at September 30, 2021 and December 31, 2020, were unrealized gains (net of taxes) on the Company's available-for-sale investment securities totaling $12.0 million and $23.3 million, respectively. This decrease in unrealized gains primarily resulted from increasing market interest rates during 2021, which decreased the fair value of investment securities. Also included in stockholders' equity at September 30, 2021, were realized gains (net of taxes) on the Company's cash flow hedge (interest rate swap), which was terminated in March 2020, totaling $25.2 million. This amount, plus associated deferred taxes, is expected to be accreted to interest income over the remaining term of the original interest rate swap contract, which was to end in October 2025. At September 30, 2021, the remaining pre-tax amount to be recorded in interest income was $32.6 million. The net effect on total stockholders' equity over time will be no impact as the reduction of this realized gain will be offset by an increase in retained earnings (as the interest income flows through pre-tax income). On a preliminary basis, as of September 30, 2021, the Company's Tier 1 Leverage Ratio was 11.0%, Common Equity Tier 1 Capital Ratio was 13.4%, Tier 1 Capital Ratio was 14.0%, and Total Capital Ratio was 16.9%. On September 30, 2021, and on a preliminary basis, the Bank's Tier 1 Leverage Ratio was 11.7%, Common Equity Tier 1 Capital Ratio was 14.7%, Tier 1 Capital Ratio was 14.7%, and Total Capital Ratio was 15.9%. On August 15, 2021, the Company redeemed all of the Company's outstanding 5.25% fixed-to-floating rate subordinated notes due August 15, 2026, with an aggregate principal balance of $75 million. The total redemption price was 100% of the aggregate principal balance of the subordinated notes plus accrued and unpaid interest. The Company utilized excess cash on hand for the redemption payment. During the three months ended September 30, 2021, the Company repurchased 307,059 shares of its common stock at an average price of $53.13 and declared a regular quarterly cash dividend of $0.36 per common share, which reduced stockholders' equity. During the nine months ended September 30, 2021, the Company repurchased 449,438 shares of its common stock at an average price of $52.89 and declared regular cash dividends of $1.04 per common share.   LOANS Total gross loans (including the undisbursed portion of loans), excluding FDIC-assisted acquired loans and mortgage loans held for sale, decreased $210.0 million, or 4.1%, from $5.13 billion at December 31, 2020, to $4.92 billion at September 30, 2021. This decrease was primarily in other residential (multi-family) loans ($233 million decrease), commercial business loans ($77 million decrease), commercial real estate loans ($45 million decrease) and consumer auto loans ($31 million decrease). The decrease in commercial business loans was primarily the result of repayment of PPP loans and no new PPP loan originations after June 30, 2021. These decreases were offset by increases in construction loans ($135 million increase) and single family real estate loans ($44 million increase). The FDIC-assisted acquired loan portfolios had net decreases totaling $4.9 million and $19.1 million during the three and nine months ended September 30, 2021. Outstanding net loan receivable balances decreased $271.1 million, from $4.30 billion at December 31, 2020 to $4.03 billion at September 30, 2021. For further information about the Company's loan portfolio, please see the quarterly loan portfolio presentation available on the Company's Investor Relations website under "Presentations." Loan commitments and the unfunded portion of loans at the dates indicated were as follows (in thousands):     September 30, 2021   June30, 2021   March31, 2021   December31, 2020   December31, 2019   December31, 2018 Closed non-construction loans with unused available lines                         Secured by real estate (one- to four-family) $ 173,758 $ 173,644 $ 170,353 $ 164,480 $ 155,831 $ 150,948 Secured by real estate (not one- to four-family)   23,870   20,269   25,754   22,273   19,512   11,063 Not secured by real estate - commercial business   76,885   75,476   71,132   77,411   83,782   87,480                           Closed construction loans with unused available lines                         Secured by real estate (one-to four-family)   68,441   63,471   52,653   42,162   48,213   37,162 Secured by real estate (not one-to four-family)   866,185   847,486   812,111   823,106   798,810   906,006                           Loan commitments not closed                         Secured by real estate (one-to four-family)   62,096   66,037   93,229   85,917   69,295   24,253 Secured by real estate (not one-to four-family)   126,815   55,216   50,883   45,860   92,434   104,871 Not secured by real estate - commercial business   3,000   —   3,119   699   —   405                             $ 1,401,050 $ 1,301,599 $ 1,279,234 $ 1,261,908 $ 1,267,877 $ 1,322,188 PROVISION FOR CREDIT LOSSES AND ALLOWANCE FOR CREDIT LOSSES The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2021. The CECL methodology replaces the incurred loss methodology with a lifetime "expected credit loss" measurement objective for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the time the financial asset is originated or acquired. This standard requires the consideration of historical loss experience and current conditions adjusted for reasonable and supportable economic forecasts. Our 2020 financial statements were prepared under the incurred loss methodology standard. Upon adoption of the CECL accounting standard, we increased the balance of our allowance for credit losses related to outstanding loans by $11.6 million and created a liability for potential losses related to the unfunded portion of our loans and commitments of approximately $8.7 million. The after-tax effect reduced our retained earnings by approximately $14.2 million. The adjustment was based upon the Company's analysis of then-current conditions, assumptions and economic forecasts at January 1, 2021. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, commercial real estate price index, housing price index and national retail sales index. Worsening economic conditions from the COVID-19 pandemic, higher inflation or interest rates, or other factors may lead to increased losses in the portfolio and/or requirements for an increase in provision expense. Management maintains various controls in an attempt to limit future losses, such as a watch list of problem loans and potential problem loans, documented loan administration policies and loan review staff to review the quality and anticipated collectability of the portfolio. Additional procedures provide for frequent management review of the loan portfolio based on loan size, loan type, delinquencies, financial analysis, on-going correspondence with borrowers and problem loan work-outs. Management determines which loans are potentially uncollectible, or represent a greater risk of loss, and makes additional provisions to expense, if necessary, to maintain the allowance at a satisfactory level. During the quarter ended September 30, 2021, the Company recorded a negative provision expense of $3.0 million on its portfolio of outstanding loans, compared to a $4.5 million provision expense recorded for the quarter ended September 30, 2020. During the nine months ended September 30, 2021, the Company recorded a negative provision expense of $3.7 million on its portfolio of outstanding loans, compared to a $14.4 million provision expense recorded for the nine months ended September 30, 2020. Total net charge-offs (recoveries) were $(27,000) and $63,000 for the three months ended September 30, 2021 and 2020, respectively. Total net charge-offs were $9,000 and $427,000 for the nine months ended September 30, 2021 and 2020, respectively. The provision for losses on unfunded commitments for the three months ended September 30, 2021 was $643,000 compared to a negative provision expense of $339,000 for the nine months ended September 30, 2021. The level and mix of unfunded commitments resulted in a decrease in the required reserve for such potential losses in the nine month period. General market conditions and unique circumstances related to specific industries and individual projects contributed to the level of provisions and charge-offs. In 2020, due to the COVID-19 pandemic and its effects on the overall economy and unemployment, the Company increased its provision for credit losses and increased its allowance for credit losses, even though actual realized net charge-offs were very low. The Bank's allowance for credit losses as a percentage of total loans was 1.56%, 1.32% and 1.56% at September 30, 2021, December 31, 2020 and June 30, 2021, respectively. Prior to January 1, 2021, the ratio excluded the FDIC-assisted acquired loans. Management considers the allowance for credit losses adequate to cover losses inherent in the Bank's loan portfolio at September 30, 2021, based on recent reviews of the Bank's loan portfolio and current economic conditions. If challenging economic conditions were to last longer than anticipated or deteriorate further or management's assessment of the loan portfolio were to change, additional loan loss provisions could be required, thereby adversely affecting the Company's future results of operations and financial condition. ASSET QUALITY Prior to adoption of the CECL accounting standard on January 1, 2021, FDIC-assisted acquired non-performing assets, including foreclosed assets and potential problem loans, were not included in the totals or in the discussion of non-performing loans, potential problem loans and foreclosed assets. These assets were initially recorded at their estimated fair values as of their acquisition dates and accounted for in pools. The loan pools were analyzed rather than the individual loans. The performance of the loan pools acquired in each of the Company's five FDIC-assisted transactions has been better than expectations as of the acquisition dates. In the tables below, FDIC-assisted acquired assets are included in their particular collateral categories and then the total FDIC-assisted acquired assets are subtracted from the total balances. At September 30, 2021, non-performing assets, excluding all FDIC-assisted acquired assets, were $5.2 million, an increase of $1.4 million from $3.8 million at December 31, 2020, and a decrease of $325,000 from $5.5 million at June 30, 2021. Non-performing assets, excluding all FDIC-assisted acquired assets, as a percentage of total assets were 0.10% at September 30, 2021, compared to 0.07% at December 31, 2020 and 0.10% at June 30, 2021. As a result of changes in balances and composition of the loan portfolio, changes in economic and market conditions and other factors specific to a borrower's circumstances, the level of non-performing assets will fluctuate. Compared to December 31, 2020 and June 30, 2021, and excluding all FDIC-assisted acquired loans, non-performing loans increased $2.0 million and decreased $343,000, respectively, to $5.0 million at September 30, 2021, and foreclosed and repossessed assets decreased $625,000 and increased $18,000, respectively, to $152,000 at September 30, 2021. Including all FDIC-assisted acquired loans, when compared to December 31, 2020 and June 30, 2021, non-performing loans decreased $171,000 and decreased $636,000, respectively, to $7.9 million at September 30, 2021, and foreclosed and repossessed assets decreased $266,000 and increased $208,000, respectively, to $957,000 at September 30, 2021. Non-performing one- to four-family residential loans comprised $3.0 million, or 43.0%, of the total non-performing loans at September 30, 2021, a decrease of $76,000 from June 30, 2021. The majority of the non-performing FDIC-assisted acquired loans are in the one- to four-family category. Non-performing commercial real estate loans comprised $2.6 million, or 37.2%, of the total non-performing loans at September 30, 2021, a decrease of $710,000 from June 30, 2021. Non-performing consumer loans comprised $799,000, or 11.5%, of the total non-performing loans at September 30, 2021, a decrease of $70,000 from June 30, 2021. Non-performing construction and land development loans comprised $468,000, or 6.7%, of the total non-performing loans at both September 30, 2021 and June 30, 2021. Non-performing commercial business loans comprised $111,000, or 1.6%, of the total non-performing loans at September 30, 2021, an increase of $12,000 from June 30, 2021. Compared to December 31, 2020 and June 30, 2021, and excluding all FDIC-assisted acquired loans, potential problem loans decreased $1.6 million and $566,000, respectively, to $2.8 million at September 30, 2021. Due to the impact on economic conditions from COVID-19, it is possible that we could experience an increase in potential problem loans in the remainder of 2021. As noted, we experienced an increased level of loan modifications in late March through June 2020; however, total loan modifications were much lower at December 31, 2020, and decreased further at September 30, 2021. In accordance with the CARES Act and guidance from the banking regulatory agencies, we made certain short-term modifications to loan terms to help our customers navigate through the current pandemic situation. Although loan modifications were made, they did not automatically result in these loans being classified as troubled debt restructurings, potential problem loans or non-performing loans. If more severe or lengthier negative impacts of the COVID-19 pandemic occur or the effects of the SBA loan programs and other loan and stimulus programs do not enable companies and individuals to completely recover financially, this could result in additional and/or longer-term modifications, which may be deemed to be troubled debt restructurings, additional potential problem loans and/or additional non-performing loans. Further actions on our part, including additions to the allowance for credit losses, could result. Activity in the non-performing loans categories during the quarter ended September 30, 2021, was as follows:     BeginningBalance,July 1     Additionsto Non-Performing     Removedfrom Non-Performing     Transfersto PotentialProblemLoans     Transfers toForeclosedAssets andRepossessions     Charge-Offs     Payments     EndingBalance,September 30                                                             (In thousands)       One- to four-family construction $ —   $ —   $ —     $ —   $ —     $ —     $ —     $ — Subdivision construction   —     —     —       —     —       —       —       — Land development   468     —     —       —     —       —       —       468 Commercial construction   —     —     —       —     —       —       —       — One- to four-family residential   3,081     408     (347 )     —     —       (9 )     (128 )     3,005 Other residential   —     —     —       —     —       —       —       — Commercial real estate   3,308     —     —       —     (191 )     —       (519 )     2,598 Commercial business   99     20     —       —     —       —       (8 )     111 Consumer   869     60     (2 )     —     (8 )     (19 )     (101 )     799 Total non-performing loans   7,825     488     (349 )     —     (199 )     (28 )     (756 )     6,981 Less: FDIC-assisted acquired loans   2,439     —     (191 )     —     (191 )     —       (119 )     1,938                                                 Total non-performing loans net of FDIC-assisted acquired loans $ 5,386   $ 488   $ (158 )   $ —   $ (8 )   $ (28 )   $ (637 )   $ 5,043 At September 30, 2021, the non-performing one- to four-family residential category included 45 loans, two of which were added during the current quarter. The largest relationship in the category was added during the current quarter and totaled $351,000, or 11.7% of the total category. The non-performing commercial real estate category included three loans, none of which were added during the current quarter. The largest relationship in the category, which totaled $2.4 million, or 90.7% of the total category, was added during the first quarter of 2021 and is collateralized by an office building in the Chicago, Ill., area. The non-performing consumer category included 38 loans, six of which were added during the current quarter. The non-performing land development category consisted of one loan added during the first quarter of 2021, which totaled $468,000 and is collateralized by unimproved zoned vacant ground in southern Illinois. Activity in the potential problem loans category during the quarter ended September 30, 2021, was as follows:     BeginningBalance,July 1     Additions toPotentialProblem     RemovedfromPotentialProblem     Transfersto Non-Performing     Transfers toForeclosedAssets andRepossessions     Charge-Offs     Payments     EndingBalance,September 30     (In thousands)       One- to four-family construction $ —   $ —   $ —     $ —   $ —     $ —     $ —     $ — Subdivision construction   17     —     —       —     —       —       (1 )     16 Land development   —     —     —       —     —       —       —       — Commercial construction   —     —     —       —     —       —       —       — One- to four-family residential   1,805     —     (314 )     —     —       —       (30 )     1,461 Other residential   —     —     —       —     —       —       —       — Commercial real estate   2,477     —     (516 )     —     —       —       (20 )     1,941 Commercial business   —     —     —       —     —       —       —       — Consumer   396     61     —       —     (40 )     (6 )     (34 )     377 Total potential problem loans   4,695     61     (830 )     —     (40 )     (6 )     (85 )     3,795 Less: FDIC-assisted acquired loans   1,357     —     (314 )     —     —       —       (20 )     1,023                                                 Total potential problem loans net of FDIC-assisted acquired loans $ 3,338   $ 61   $ (516 )   $ —   $ (40 )   $ (6 )   $ (65 )  .....»»

Category: earningsSource: benzingaOct 20th, 2021

Total Construction Starts Rebound In September

Construction shakes off concerns about material prices and Delta variant to post solid growth Q3 2021 hedge fund letters, conferences and more HAMILTON, New Jersey — October 19, 2021 — Total construction starts rose 10% in September to a seasonally adjusted annual rate of $889.7 billion, according to Dodge Construction Network. All three sectors improved: […] Construction shakes off concerns about material prices and Delta variant to post solid growth if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more HAMILTON, New Jersey — October 19, 2021 — Total construction starts rose 10% in September to a seasonally adjusted annual rate of $889.7 billion, according to Dodge Construction Network. All three sectors improved: nonresidential building starts rose 15%, residential starts moved 9% higher, and nonbuilding starts increased by 6%. “Construction starts have struggled over the last three months as concerns over rising prices, shortages of materials, and scarce labor led to declines in activity,” stated Richard Branch, Chief Economist for Dodge Construction Network. “The increase in September, however, partially allays the fear that construction is headed for a free-fall and shows that owners and developers are still ready to move ahead with projects. Starts are likely to continue to trend in a positive but sawtooth fashion in the coming months until a more balanced recovery takes hold next year.” Below is the full breakdown: Nonbuilding Construction Starts Nonbuilding construction starts rose 6% in September to a seasonally adjusted annual rate of $177.9 billion. Miscellaneous nonbuilding starts (pipelines, site work, etc.) and environmental public works (water, sewers, etc.) each gained 29%, while highway and bridge starts gained less than 1%. On the downside, utility/gas plant starts dropped 53%. Year-to-date, total nonbuilding starts were essentially unchanged through September. Environmental public works were 24% higher, while highway and bridge starts were 2% lower. Miscellaneous nonbuilding fell 14% and utility/gas plant starts fell 10% during the first nine months of the year. For the 12 months ending in September 2021, total nonbuilding starts were 1% lower than the 12 months ending in September 2020. Environmental public works starts were 22% higher and highway and bridge starts were up 3%, while utility and gas plant starts were down 20% and miscellaneous nonbuilding starts were 16% lower on a 12-month rolling basis. The largest nonbuilding projects to break ground in September were the $500 million Whale offshore oil field pipeline near Houston, TX, the $485 million Chimney Hollow Reservoir Dam in Berthoud, CO, and the $450 million repairs to docks at the United States Coast Guard Station in Fort Macon, NC. Nonresidential Building Starts Nonresidential building starts rebounded in September, gaining 15% to a seasonally adjusted annual rate of $281.8 billion. Commercial buildings rose 13% as starts improved for the hotel, warehouse, and retail sectors. Office building starts fell. Institutional building starts rose 13% with all sectors but public buildings improving over the month. Manufacturing starts jumped 47% following a particularly weak August. In the first nine months of 2021, nonresidential building starts were 7% higher. Commercial starts increased 8%, manufacturing starts were 38% higher, while institutional starts were up just 2%. For the 12 months ending in September 2021, nonresidential building starts were 1% lower than in the 12 months ending in September 2020. Commercial starts were down 1%, institutional starts rose 1% and manufacturing starts dropped 12% in the 12 months ending September 2021. The largest nonresidential building projects to break ground in September were the $670 million modernization program at Pittsburgh International Airport in Pittsburgh, PA, the $658 million Irvine Campus Medical Complex in Irvine, CA, and the $495 million Phillips 66 Sweeny Hub Fractionator in Sweeny, TX. Residential Building Starts Residential building starts rose 9% in September to a seasonally adjusted annual rate of $430 billion. Single family starts gained 9% in September, while multifamily starts increased by 24%. Through nine months, residential starts were 25% higher than in the same period one year ago. Single family starts gained 26%, and multifamily starts grew 20%. For the 12 months ending in September 2021, total residential starts were 22% higher than the 12 months ending in September 2020. Single family starts gained 26%, and multifamily starts were up 10% on a 12-month sum basis. The largest multifamily structures to break ground in September were the $300 million Islablue Apartments in Long Beach, NY, the $256 million Station Square Apartments (phase 2A) in Ronkonkoma, NY, and the $215 million 906 W. Randolph mixed-use project in Chicago, IL. Regionally, total construction starts improved in all five regions during September. September 2021 Construction Starts About Dodge Construction Network Dodge Construction Network leverages an unmatched offering of data, analytics, and industry-spanning relationships to generate the most powerful source of information, knowledge, insights, and connections in the commercial construction industry. The company powers four longstanding and trusted industry solutions—Dodge Data & Analytics, The Blue Book Network, Sweets, and IMS—to connect the dots across the entire commercial construction ecosystem. Together, these solutions provide clear and actionable opportunities for both small teams and enterprise firms. Purpose-built to streamline the complicated, Dodge Construction Network ensures that construction professionals have the information they need to build successful businesses and thriving communities. With over a century of industry experience, Dodge Construction Network is the catalyst for modern commercial construction. To learn more, visit construction.com. Media Contact: Allison Heard | 104 West Partners | allison.heard@104west.com Updated on Oct 19, 2021, 1:24 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkOct 19th, 2021

All Black team aiming to develop first skyscraper built by African Americans in NYC history

An all-star team of Black architects, developers, builders and lenders is bidding to develop the first skyscraper built by African Americans in the city’s history. Don Peebles, CEO The Peebles Corporation, is part of a team that includes architect Sir David Adjaye, Deryl McKissack, founder of the oldest minority/women-owned design... The post All Black team aiming to develop first skyscraper built by African Americans in NYC history appeared first on Real Estate Weekly. An all-star team of Black architects, developers, builders and lenders is bidding to develop the first skyscraper built by African Americans in the city’s history. Don Peebles, CEO The Peebles Corporation, is part of a team that includes architect Sir David Adjaye, Deryl McKissack, founder of the oldest minority/women-owned design construction firm in the US, and Exact Capital Group, a majority Black-owned real estate development firm headquartered in New York. Steven Witkoff, founder of the Witkoff Group, is also a member of the team. They have submitted and RFP to build the Western Hemisphere’s tallest skyscraper to date on a 1.2-acre lot next to the Javits Center on Manhattan’s West Side. The plan includes a 1,500 ft. tower, two hotels, an observation deck and skating rink as well as commercial office spaces with the NAACP headquarters. The venture would employ 30,000 New Yorkers over six years, including 15,000 permanent jobs, bringing in more than $5 billion in new tax revenue for the city and state over 30 years, according to the team. “This project is emblematic of true equity in development,” said Peebles. “A symbol for all who visit New York, cementing in brick and mortar that New York is serious about economic inclusion.” The team says it recently submitted RFP to New York State for the 1.2 acre lot will change New York City’s skyline while acting as a “powerful economic engine” for minorities and women with the team’s commitment of 35 percent in contracts to people of color totaling more than a billion dollars.  Bounded by 35th and 36th Streets, 11th Avenue and Hudson Boulevard West, Site K sits one block from the High Line, Hudson Yards and the Number 7 subway line. New York’s economic development arm issued an RFP in March for proposals to develop the site for commercial or mixed use as part of the state’s vision for investing $51 billion to further redevelop Midtown West by upgrading transit facilities, extending the High Line, and adding commercial, retail and residential space. The lot is at 418 11th Ave. and is referred to as “Site K.” It’s owned by the New York Convention Center Development Corp., a subsidiary of Empire State Development. The site is east of the main entrance to the Jacob K. Javits Convention Center and is a block from the High Line, a subway station with access to the 7 train, Hudson Yards and Hudson River Park. Peter Ward, former president of New York’s Hotel and Motel Trades, is backing the all-Black proposal saying the project will be a well-needed economic boost not only to the city’s workforce, but also the tourism industry. “This project will provide $4.4 billion of new economic output per year, bringing thousands of jobs in the construction, design and development as well as millions of people across the globe who will be excited to see this iconic skyscraper,” said Ward. The project’s inclusive team has attracted citywide support from the African-American business and civic communities as well as the Black clergy. “Unfortunately, for most of New York’s history, African-Americans and people of color have been rendered as mere economic tourists who gaze upward at one of the greatest skylines in the world with the intrinsic knowledge they will never be able to participate in what really makes New York unique,” said Rev. Dr. Charles Curtis, Sr., pastor Mount Olivet Baptist Church and Head of NY Interfaith Commission For Housing Equality. “The awarding of this project to this team will send a statement across the globe that architects, developers, engineers and financial professionals of color are now full participants in this great miracle of global capitalism called New York City.” The post All Black team aiming to develop first skyscraper built by African Americans in NYC history appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyOct 13th, 2021

It can take years for Google Maps to update certain features - here"s how they get the data to update Street View, traffic, and more

Google Maps makes small updates every day, but Street View and other real-life maps might only update every few years. Updating Google Maps takes a massive amount of data. Alyssa Powell/Insider Google Maps makes small updates every day, but Street View and other real-life maps might only update every few years. Some Google Maps features, like traffic and directions, can update in real-time. How often Google Maps updates in your city depends on how many people live near you. Visit Insider's Tech Reference library for more stories. From live traffic reports to high-quality satellite images, Google Maps has dozens of features that change and update regularly. But updating every map every day would take trillions of dollars by itself - this means that while some users will notice new updates often, other users might have to wait years for new content.Insider reached out to Google to ask how often they update five major Google Maps features: Street View, satellite images, street names and routes, business names and information, and traffic and road closures.Here's everything to know about how often Google updates, including what it might mean if you're not seeing updates near you.How often does Google Maps update?There's one general rule to Google Maps' updates: Places where more people live get updated more often. In a Maps 101 blog, Google Maps' Technical Program Manager Matt Manolides says that "Overall [their] goal is to keep densely populated places refreshed on a regular basis." In other words, while New York City might receive updates every week, the deep forests of northern Maine might go years without.But as we'll go over below, individual users have a surprising amount of influence over the maps in their area.Street ViewStreet View - the feature that lets you see actual on-the-ground photos of nearly any location in the US and beyond - is possibly Google Maps' most famous feature. According to Google, it's also one of the most difficult features to keep up-to-date.In general, Google tries to take new Street View photos in major cities once every year. Less populated areas can probably expect new photos every three years or so - but don't be surprised if it takes even longer. Quick tip: If you're using Street View on the Google Maps website, you can see exactly when the current picture was taken by looking at the bottom-right corner of the screen. Look at the corner to see when the Street View photo was taken. Google; William Antonelli/Insider Although it's not heavily advertised, the Street View team actually keeps a public list of places they plan to visit in dozens of countries across the world. You can find that list in the Where we're headed section of this webpage. Just be aware that the dates they give are broad estimates - don't expect an exact day and time. And even if Google takes new photos of your town, they might not use them if the old ones are still accurate. Google gives a general timeframe for when they'll be taking photos. Google Satellite imagesAlthough it's not active by default, you can set Google Maps to show you real overhead imagery of any location on Earth. These pictures are taken by both satellites and airplanes flying overhead, and are then "stitched together" to make maps. This process takes a massive amount of time and work from humans and machines alike. Like with Street View, Google prioritizes updating "the places that are changing the most," says Manolides. This means that big cities should see updates every year, medium-sized cities every two years, and it could take three years or longer for more obscure areas. A map of Manhattan with the satellite layer turned on (right) and off (left). Google And of course, Google doesn't update the entire world in one go. They generally release new satellite data every month, adding whichever images they have ready to go.Occasionally, Google will release new satellite imagery ahead of schedule to mark special occasions. For example, they uploaded new photos of London right at the start of the London 2012 Summer Olympics that showed off the new arenas.Since the majority of Google's overhead images come from third-party sources - "state agencies, geological survey organizations, and commercial imagery providers," as Google communications director Peter Schottenfels wrote in a recent blog - there's no exact schedule for when the updates go live. Like with Street View, you can see which organizations took the pictures by looking at the bottom of the screen. Google Street names and routesGoogle Maps is built to show you all the streets nearby and give accurate directions from one place to another. But with thousands of cities across the world and even more roads, making sure everything stays up-to-date is a big job.Google receives data about streets and roads from a variety of sources. These are mostly government agencies like the United States Geological Survey. But they also accept data from local governments, housing developers, and more. When they visit cities to take pictures, the Street View team also makes note of when real life doesn't match what they have on the map.This means there's not an easy way to predict when streets and roads will be updated. If these third-party agencies are on top of things, new roads and street names should appear quickly. But it's largely up to them to report the changes to Google.If you find that a street doesn't match what Google Maps is showing - maybe it's got the wrong name, or doesn't have the right shape - you can report it to Google yourself. On the website, you can use the Edit the map feature to report misdrawn, misnamed, or even missing roads. You can also right-click the offending road and select Report a data problem. There are multiple ways to report map issues. Google; William Antonelli/Insider Google will review your submission and compare it to their data. If they find that you're right, they'll change it on Google Maps. They take submissions from anyone, but they prioritize reports from Local Guides.Business names and informationWhen you open Google Maps, chances are you'll immediately see the names of dozens of nearby businesses. Select one of them, and you'll probably see what it sells, its hours of operation, and reviews.Unlike other pieces of data, Google rarely updates this information themselves. Instead, they rely on the businesses to upload their own information. If you're the owner of a new business or location, you should sign up for a Google Business account and give them your information to put on the map.But like with street names and routes, any user can report an error. When you find a business with the wrong information, click or tap the Suggest an edit button to submit the right info. Google will review it and update the map if you're right. As long as you're logged into Google, you can submit edits. Google; William Antonelli/Insider Once an error is reported, Google usually corrects it within a week.Traffic and road closuresWhen you ask for directions on Google Maps, it should tell you exactly how much traffic you should expect, how busy the place you're going to is, and any routes that are closed along the way. This all updates in real-time, faster than any other feature. And to do this, Google collects data from a wealth of different sources.Whenever you have Google Maps (or Waze, another Google navigation app) open, unless you've specifically disabled the feature, you're sending anonymous location data to Google. The more people with Google Maps open in one place, the busier Google knows it is. This is also how they calculate traffic: If a hundred phones with Google Maps open are traveling 60 miles per hour and then suddenly stop all at once, Google knows there's a traffic jam. Once you start a route, Google Maps will show you which roads have traffic jams, car accidents, and more. Google And once enough data is collected, Google can use machine learning to predict patterns. For example, Google doesn't need new data to tell you that the Brooklyn Bridge gets crammed with traffic at rush hour - it's happened thousands of times before, so they can predict it'll happen again.Users contribute information actively, too. If you've ridden the New York City subway enough, you're probably used to Google Maps asking you how crowded it is - they do this so they can report the info to other users. Most popular spots on Google Maps will have a live chart showing how busy it is. Google Local governments generally report long-term road closures to Google themselves. But Google also learns from user reports, either on Google Maps or Waze.If you're in a high-population area, you should expect Google's real-time traffic stats to be incredibly accurate.How to draw a route on Google Maps to create custom directions or plan a tripHow to use latitude and longitude in Google Maps to get the coordinates of a specific place or find a locationHow to turn on dark mode in Google Maps on your iPhone or AndroidHow to download maps from Google Maps to get driving directions offlineRead the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 11th, 2021

America"s big cities are turning into housing catastrophes. If we want to fix this mess, we should try and copy Tokyo.

Local US governments impose housing restrictions for purely political reasons. In Tokyo, rules are made at the national level. A view of residential houses in Tokyo, Japan. Getty In major cities around the world, housing is becoming less and less affordable. Tokyo, Japan, is a notable exception, with prices barely rising since 1995. The US has restrictive, often absurd regulations, and should instead mirror Tokyo. Jairaj Devadiga is an economist specializing in public policy and economic history. This is an opinion column. The thoughts expressed are those of the author. In major cities around the world, housing prices have spiraled out of control.In California's Bay Area, the median house price is $1.3 million. In Vancouver, the average household must save for 34 years to make a down payment on a house, and put aside 85% of its pre-tax income for mortgage payments. In Sydney, a decrepit house without any toilet facilities sells for $3.5 million.In this sea of craziness, Tokyo has been an island of sanity. Its housing prices have barely risen since 1995. This is not due to deflation either.While the population of Japan as a whole has been shrinking, Tokyo has been growing. Between 1995 and 2019, the population of Tokyo grew by 2.17 million, or just above 90,000 per year on average. To accommodate all these new people, lots of housing had to be built. Over the same time period, there was an average of 153,000 housing starts annually.A study by the Fraser Institute illustrates what happens when housing supply fails to keep up with demand. Between 2015 and 2019, 120,000 new jobs were created in Vancouver and Toronto. In the same time period, there were only 57,000 housing starts every year. Since demand was growing more than twice as fast as supply, prices skyrocketed. The same story played out in almost every major city. Lots of new jobs being created, lots of people wanting to move, and not enough homes being built for all of them.There are numerous bad policies which prevent the construction of more housing. Chief among them are restrictive zoning laws. In most cities with expensive housing, vast swathes of residential land are reserved exclusively for single family homes. Until very recently, the worst of the bunch was San Jose, with 94% of the land being off limits for apartment buildings. No wonder it is the least affordable city in America.Not only does this make housing costlier for middle and low income folks, but also subsidizes mansions for the rich. The land on which a mansion sits would be worth a lot more if an apartment building could be built on it. The developer would make a profit even if they sold each apartment at an affordable price.However, because that's not allowed, developers won't bid for that land, thus driving down its price.While Tokyo does have low density zones, these do not prohibit multi-family buildings. Thus it is not uncommon to see a three story apartment building right next to a single family home.Apart from zoning, cities dictate minimum lot sizes and maximum floor area ratios (how much of the plot is covered by the building itself), which further stifle construction. In much of Mumbai, for instance, the floor area ratio was capped at 1.33 until 2018.This had the disastrous result of pushing poor people into slums, as they could not compete with affluent families for the limited housing. In 1971, 22% of Mumbai's population lived in slums. By 2010, this had risen to 62%. By contrast, Tokyo allows floor area ratios as high as 13, and even higher with government permission.Another problem is cities wanting to preserve too many historical sites. For instance, cities often declare old homes or commercial establishments to be historical monuments, which prevents them from being torn down and replaced with apartment buildings. In some cases, cities prevent development even when the historical monument itself would be untouched. For instance, last year, a historic preservation board in Seattle rejected a proposal for a 200-unit apartment building because it would be taller than nearby historical monuments. While Tokyo has historic buildings, its criteria for preservation are much stricter and thus don't get in the way of affordable housing.Another important factor in raising housing prices is over-regulation. A recent report by the National Association of Home Builders estimates that regulations add almost $94,000 to the price of new homes. The vast majority of these regulations are purely aesthetic, such as mandating certain types of landscaping and architectural styles, or banning vinyl sidings. This is not exclusive to American cities. A study on India's Ahmedabad shows that unnecessary regulations add 34% to the cost of housing. By contrast, Tokyo has very few common sense regulations; mainly to protect against the frequent earthquakes. As long as developers follow these and the very liberal zoning laws, they are free to build as they please.At this point, you might wonder why these restrictive rules persist if they are so obviously bad. Why is liberal city-planning the exception, rather than the norm? To answer this, we must examine the policy making process itself, to understand the motivations of all participants.Consider San Jose, with its 94% single-family zoning. The politicians in San Jose were catering to the wishes of their constituents; the people already living in San Jose. Those voters wanted high prices. To them, their house is an investment, which would lose value if more housing were built in their neighborhood. It would also result in new neighbors bringing in a different culture from what the residents are used to.People who wanted to move to San Jose, but couldn't due to high prices, would benefit from more liberal planning. They might live in different parts of California, or even in other states. Obviously they don't get to vote in San Jose elections, thus local politicians have no incentive to help them.The same process plays out across every city, resulting in sky-high prices.At the state or national level, though, the political calculus changes completely. People in a particular city might want to restrict housing development, but everyone else wants more. Thus state and national politicians have an incentive to liberalize.This is exactly what happened in Japan. It too had local governments choking the housing market, resulting in a massive housing bubble in the 1980s. This prompted the national government to enact a series of reforms to rein in housing prices.The national government formulates building codes, zoning laws, and other city-planning regulations for the entire country, giving very little leeway to local governments.Recently, governor Gavin Newsom did something similar in California, by finally abolishing single-family zoning statewide, and also loosening some other restrictions.To win elections, local politicians must necessarily keep down the supply of new housing. It is up to state and national governments to deny them that power, and quickly. Otherwise, home-ownership will remain a pipe-dream for most people.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 9th, 2021

Europe"s Gas Prices Surge To Avert Risk Of Winter Shortage

Europe's Gas Prices Surge To Avert Risk Of Winter Shortage By John Kemp, Reuters energy analyst and reporter Europe’s gas and electricity prices are setting record highs on a daily basis and rising at an accelerating rate as the market tries to destroy enough demand to protect depleted inventories ahead of the winter.  Gas storage sites in the European Union and United Kingdom are currently just under 76% full, compared with a ten-year seasonal average of almost 90%, according to data compiled by Gas Infrastructure Europe. In the last decade, storage has emptied by an average of 57 percentage points over winter, but depletion is highly variable, ranging from a minimum of 38 points in 2013/14 to a maximum of 71 points in 2017/18. If this winter sees an average drawdown, storage sites would be reduced to just 19% full by next spring, the second lowest for a decade, leaving the region with a persistent gas shortage next year. If the winter sees a moderately strong draw, in the 75th percentile, storage would be reduced by 68 percentage points to a record low of just 8% next spring, increasing the probability supply will actually run out in some areas.  If the winter sees a maximum draw, similar to 2017/18, storage would be almost exhausted by next spring, making local shortages almost inevitable. Futures prices are rising to avert this threat by rationing demand now to conserve inventories and reduce the risk of running out later in the winter. Sharply rising prices are the reason wholesale markets (such as European gas) rarely run into physical shortages, unlike retail markets (U.K. gasoline and diesel) where price rises are typically more limited for commercial and political reasons. Europe’s gas and electricity prices are likely to remain elevated until there is clear evidence that they have begun to reduce demand and conserve inventories. There are tentative signs the inventory situation has already improved slightly since late August in response to much higher prices, but the market may need a much stronger signal of conservation before prices fall. The most likely early signs of conservation are temporary factory closures (especially energy-intensive users); reductions in central and local government energy consumption (street lighting and building temperatures); and reductions in commercial and residential consumption (building temperatures). Until there is a clear signal consumers have begun to respond by reducing gas use, prices are likely to remain exceptionally high to avert a much worse situation early next year. Tyler Durden Thu, 10/07/2021 - 05:00.....»»

Category: blogSource: zerohedgeOct 7th, 2021

We are seeking nominations for our Rising Stars of Real Estate 2021 list. Here"s how to apply.

We're looking for the leaders of tomorrow, those making notable contributions and setting themselves apart in the competitive world of real estate. Three of 30 young professional who were named Insider's Rising Stars of Real Estate in 2020. We're looking for the next crop of talent. REMAX NEST/Madison Perrins/ Erik Conover Business Insider is putting together its second annual list of the best young talent in real estate. We want to spotlight standouts in the worlds of commercial and residential real estate in 2021. By October 29, submit your nominations through this form or get in touch with editor Hana Alberts. Visit Business Insider's homepage for more stories. We're seeking nominations for Business Insider's second annual list of rising stars of real estate, and we want to hear from you. If you know an up-and-comer who should be considered, please submit your suggestions below or through this form.We're looking for the leaders of tomorrow, those making notable contributions or accomplishments and setting themselves apart from their class in commercial and residential real estate. The nominations are open to professionals working in real estate as well as those in other industries who have a focus on real estate.Take a look at last year's list for inspiration.Criteria and methodologyOur selection criteria: We ask that nominees be 35 or under as of November 30, based in the US, and stand out from their peers. We are seeking the best and the brightest working in real estate in roles including, but not limited to, developers, investors, brokers, architects, builders, designers, urban planners, founders, and property managers. Editors will make final decisions.Please make your submission below or through this form to have your selection considered for the list. Please be as specific as possible in your submission. Please email Hana Alberts at halberts@insider.com with any questions or issues submitting nominations.Loading…Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 6th, 2021

New Rochelle developer secures $35M funding package for 75-unit rental

Greystone has arranged a $35 million funding package for New Rochelle developer Young Companies’ new mixed-use development on the town’s North Avenue. The finance company arranged a $14 million ground lease provided by Haven Capital and a $21 million leasehold construction loan from RMWC to finance the development of the... The post New Rochelle developer secures $35M funding package for 75-unit rental appeared first on Real Estate Weekly. Greystone has arranged a $35 million funding package for New Rochelle developer Young Companies’ new mixed-use development on the town’s North Avenue. The finance company arranged a $14 million ground lease provided by Haven Capital and a $21 million leasehold construction loan from RMWC to finance the development of the The Illustrator, a four-story development with 75 apartments and 7,300 s/f of commercial space at 600 North Avenue in New Rochelle. The Greystone Capital Advisors team led by Drew Fletcher and Matt Klauer served as exclusive advisor in arranging the financing on behalf of the Sponsor. Young Companies’ CEO, Robert Young, is a lifetime resident of New Rochelle and one of the area’s leading developers of high-quality multifamily housing. The Illustrator is directly across the street from The Young Companies’ The Rockwell, the 114-unit property with 25,000 s/f of retail that the developer completed at the end of 2020. Together, the projects will provide more than 200 residential units and revitalize the corridor along North Avenue between the MetroNorth stop and the college district. “We are proud to have worked with Young Companies, Haven, and RMWC to deliver a creative full-stack debt solution that provides 90 percent loan-to-cost non-recourse financing during a challenging economic environment. The Illustrator will raise the bar for urban living in New Rochelle,” said Klauer. “Greystone Capital Advisors delivered a fantastic execution, and we are very happy to have launched a relationship with Haven and RMWC,” said Young. “This complex execution required careful collaboration and I’m delighted with the results. The Illustrator is a significant addition to our portfolio and will further the continued development of New Rochelle.” “It was a pleasure working with Greystone, Young Companies, and RMWC to use our Haven ground lease structure to maximize funding proceeds at the lowest possible cost,” said Joe Shanley, Head of Acquisitions, Haven Capital. Marc Brooks, managing director of RMWC, shared, “RMWC is pleased to bring its flexible construction financing capabilities to this exciting project. We look forward to working with The Young Companies, a sponsor with deep roots in the New Rochelle market. We are also grateful to have completed our first closing with Greystone, who brought together a complicated capital structure and enjoyed working closely with Haven Capital throughout the closing process.” The post New Rochelle developer secures $35M funding package for 75-unit rental appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyOct 1st, 2021

How London Became a Global Center for Fintech and What U.S. Tech Hubs Can Learn From It

When Silicon Valley veteran Eileen Burbidge moved to London in 2004, it was only meant to be temporary. With more than a decade of experience at tech stalwarts including Apple, Sun Microsystems and Verizon Wireless, the Chicago native felt a stint in Europe might help advance her career back in the U.S. With no language… When Silicon Valley veteran Eileen Burbidge moved to London in 2004, it was only meant to be temporary. With more than a decade of experience at tech stalwarts including Apple, Sun Microsystems and Verizon Wireless, the Chicago native felt a stint in Europe might help advance her career back in the U.S. With no language barrier and an emerging software-development market, London was an obvious choice. She took on a job as product director for a newly launched startup named Skype. Nearly 20 years later, Burbidge is still there. Now co-founder and partner of early-stage venture-capital firm Passion Capital, she has established herself as an intrinsic part of London’s financial technology, or “fintech,” scene. Burbidge was the digital representative on former Prime Minister David Cameron’s business advisory panel and was honored by Queen Elizabeth II in 2015 as a member of the Order of the British Empire—or MBE—for services to U.K. business. She also served as tech ambassador for the office of the mayor of London, and is now a fintech envoy to the U.K. Treasury. [time-brightcove not-tgx=”true”] It’s little surprise then that Burbidge sees London firmly at the beating heart of the tech-forward financial world. “It’s got the unique combination of a financial-services heritage, with 300 of the world’s banking headquarters based here, plus progressive policy-makers who support fintech innovation,” she tells TIME over video call from her home office in North London. The U.K. capital has for centuries been a center of global finance, with long-established trading exchanges and trusted banking and insurance institutions. In the digital era, it has become an emerging hub for fintech companies, which use technology to improve financial services. Not even the uncertainty presented by the U.K.’s departure from the European Union in early 2020, coupled with the disruption of the global pandemic, has stemmed growth. Venture-capital firms invested $4.57 billion in U.K.-based fintech companies last year, making the country second only to the U.S., where investment was $19.6 billion, according to growth platform Tech Nation’s annual report on the U.K. tech sector. And in the first half of 2021 alone, U.K. tech companies raised more than $18 billion worth of venture-capital funding, according to figures compiled for the U.K.’s Digital Economy Council. “Investors showing their confidence in London’s fintech offering reinforces our city’s position as a leading global hub for this important and growing industry,” Sadiq Khan, the mayor of London, says in a statement. “Despite the impact of Brexit and the pandemic, we’ve seen record levels of funding for fintech businesses in the first six months of the year.” The success story of this boom in fintech innovation has undoubtedly been so-called challenger banks— digital-only banking apps that use cloud-based infrastructure, embedded artificial intelligence, and agile frameworks to give consumers easier and faster access to banking services and financial products. Companies like Revolut, Starling Bank and Monzo have raised increasingly large sums of money and established themselves as household names among their tech-savvy, largely millennial and Gen Z consumer base, many of whom have eschewed traditional retail banking in favor of these more user-friendly banking apps. How London evolved to become a challenger to established hubs for innovation in the U.S. has lessons for entrepreneurs and investors who find an increasingly difficult regulatory environment and a shrinking talent pool for development in California, New York or Texas. Burbidge, one of the key architects of the fintech boom, sees a changing of the guard. “Before long my colleagues [in the U.S.] stopped asking when I was coming back and by 2016 were instead coming across to join me,” she says. When Burbidge set about building her team at Skype in 2004, the lack of qualified workers was one of the biggest challenges she faced. “Despite this burgeoning tech and digital sector in London, it was impossible for me to find a product manager, and the first few hires I made all came over from the States.” Now, she says there is a “wide concentration of developers, so much more than San Jose or New York.” That change has been helped in part by shifts in London’s economic ecosystem in the past decade. As a bruised City of London emerged from the financial crisis, it had lost its shine for some workers, who had seen how antiquated technology and a lack of innovation were stagnating progress and career development. Public attitudes toward the City had cooled amid austerity measures that also exacerbated problems for those who were unbanked or underserved by traditional outlets. It was this environment that led Starling Bank’s founder Anne Boden—who spent 30 years working for traditional banking heavyweights that had been battered by the crisis, like ABN Amro, Royal Bank of Scotland and Allied Irish Banks—to launch her own bank in 2014. “I noticed that banking hadn’t progressed technologically, and this frustrated me,” says Boden. “The big banks seemed to be stuck in the past … Their systems were slow and yet no one seemed to be improving them. I realized that if I wanted to see a real digital bank in action, I would have to launch one myself.” Boden says she founded Starling as “a more human alternative to the banks of the past.” The digital bank, which counts Fidelity and the Qatar Investment Authority among its backers, was recently valued at $1.7 billion. Many others in the financial industry had similar sentiments to Boden’s, and left the industry to join some of London’s burgeoning startups or create their own fintechs. As attitudes have shifted, the conveyor belt that once took the brightest young minds from the halls of Europe’s top universities to the trading floors and deal rooms of investment banks has slowed, and fintechs have been reaping the benefits. Nikolay Storonsky, the British-Russian CEO of Revolut, says it was London’s talent pool that was most compelling when he established the company in 2015. “We have a hugely diverse U.K. workforce—more than 80 nationalities—many of whom were Londoners already, and others who were enthusiastic to come here.” Dan Kitwood—Getty ImagesLondon’s Canary Wharf business district, where fintech company Revolut is based Storonsky, a former derivatives trader at Lehman Brothers and Credit Suisse, was also able to tap two talent pipelines to fuel the company’s phenomenal growth. “London’s eminence as a world financial centre is a huge advantage. There’s deep experience and talent here, both from the financial sector and from the startup world,” he says in an email. Burbidge found that what wasn’t as established in London was the early-stage venture-capital funding network that startups need to grow, and that creates unicorns. In the U.K., venture-capital firms have typically been later-stage investors, meaning startup founders have had to rely on angel investors, bank loans and even their own cash for early funding. Burbidge and her two business partners at the time, Robert Dighero and Stefan Glaenzer, who has since left the firm, decided to replicate the Silicon Valley model of first-round funding through Passion Capital when they founded it in 2009. They were determined to back exciting and dynamic startups, leading to standout investments in GoCardless in 2011 and Monzo in 2015. The latter neobank, known for its distinctive colorful debit cards that can be used abroad without fees, has since surpassed a $1 billion valuation and is piloting a beta version of its app in the U.S. in partnership with Sutton Bank. A major reason challenger banks have been able to thrive in London is a supportive regulatory environment, says Storonsky, whose Revolut is now valued at $33 billion, making it the U.K.’s most valuable tech company in history. U.K. watchdog the Financial Conduct Authority (FCA) has taken an active role, engaging with banks and new fintech companies on consumer-focused solutions, and it has established a world-class sandbox, where approved new fintech firms can test products with real consumers. Yet by 2016, just as the fintech industry was becoming established in London, storm clouds loomed on the horizon. That summer, the British public voted to leave the E.U.—although notably voters in London backed Remain by 60-40. London’s financial industry grew into what it is today partly because its rules mirrored those of the E.U., allowing for seamless transactions. Many in the London-based fintech industry were concerned about how Brexit might change the legal framework that the City operates within. The U.K. ultimately left the bloc last January, but Burbidge says that there has been no doomsday scenario so far: “We certainly haven’t seen the big asset managers or banks clear out of London. Perhaps that’s because it’s been the home of traditional financial-services institutions for so long—there’s still a draw.” The regulatory environment remains advantageous for fintech companies post-Brexit, she says. “If you’re going to be a fintech you do have to be regulated and domiciled, which means you’re subject to compliance. And the U.K. is one of the most progressive and forward-thinking homes for fintech.” For the industry to continue growing, however, it will also require the pool of talent to be continually replenished, but restrictions on freedom of movement between the U.K. and the E.U. may make that harder. The U.K. fintech industry employed 76,500 people in 2017, and that was projected to reach 105,500 by 2030 if immigration rules remained as they were. Simon Schmincke, a partner at venture-capital firm Creandum, which has invested in several U.K. fintech companies, says that bringing in talent from other countries is becoming a headache for many companies: “I am stunned that in two years, we still haven’t figured out how to bring smart people in quickly. And that is having both a negative impact on individual companies and on the country’s image.” It used to be that “everyone was welcome as long as you worked hard and smart,” Schmincke says. “Now, that image is fading.” Last year, after the U.K. formally left the E.U., Britain’s Finance Minister Rishi Sunak commissioned businessman Ron Kalifa to chair an independent strategic review of how the U.K. government, regulators, and companies can support the growth and widespread adoption of fintech and maintain Britain’s global reputation in the sector. The government has committed to adopting a number of the report’s recommendations. “We’ve set out a road map to sharpen the U.K.’s competitive advantage and deliver a more open, green and technologically advanced financial-services sector,” a spokesperson for the U.K. Treasury said. The government plans to support U.K. fintech companies by introducing new visa routes for foreign workers, enhancing its regulatory toolbox, reforming its market-listing rules and exploring a central-bank digital currency, the spokesperson said. These kinds of reforms will be necessary for London to retain its competitive edge, according to Shampa Roy-Mukherjee, associate professor and director of impact and innovation at the Royal Docks School of Business and Law, University of East London. European countries such as Malta and Lithuania are taking advantage of the uncertainty caused by Brexit to offer new homes to London-based fintech companies, she says. “These countries are able to provide the fintech companies regulatory authorization to trade with the E.U., which the U.K. currently cannot provide.” U.S. investors haven’t been scared off by Brexit—and in fact have helped to power the U.K.’s fintech industry to greater heights. John Doran, general partner at U.S. growth-capital firm TCV, an investor in Revolut, says in an email that the company’s fundamentals were the key consideration. “We look to invest behind exceptionally driven visionary founders, who are building category leaders in industries undergoing a massive structural shift, and Revolut has all of these things.” It also has the size and clout to pursue growth in the U.S. market. Similarly to Monzo’s relationship with Sutton, Revolut currently partners with Metropolitan Commercial Bank, but it applied for an independent U.S. banking license in March and began offering services to small and medium-size businesses in the U.S. Burbidge is skeptical that the success of London could be as easily replicated across the pond. “It’s definitely down to the culture and ecosystem,” she says. “Because the U.S. is so siloed in terms of regulation, the success of financial-services hubs would be difficult to replicate.” She says entrepreneurs in London are more mindful of customer outcomes than their U.S. counterparts. Partly in an effort to avoid comparisons with payday-loan apps that have been criticized for predatory tactics in recent years, many U.K. founders have worked to ensure that “wellness and mental health are built in at the core of new startups,” Burbidge says. “Historically this hasn’t been part of the startup culture in the U.S.” She adds that the FCA is more attuned to these issues and wields “a far greater influence” in the U.K. than regulators do in the U.S. “While attitudes toward financial inclusion and customer outcomes are shifting over there, I believe if they had started thinking earlier about it as a proposition, they would have attracted further investment and customers. It’s a missed opportunity for the U.S.” America’s biggest bank has taken notice of the particular advantages the U.K. market offers too. On Sept. 21, JPMorgan Chase launched its digital bank, Chase, in the U.K., marking the commercial bank’s first foray outside the U.S. in its 222-year history. It is attempting to attract U.K. consumers in the competitive market with a range of cash-back and savings offers. The bank has indicated it is in it for the long haul, and is prepared to spend hundreds of millions of dollars to become profitable in the U.K. Burbidge isn’t planning on leaving London anytime soon either, and remains its biggest cheerleader. “It’s a city with a massive commercial center, but it’s also the policymaking hub of the U.K. and additionally so creative and diverse that it’s as if you combined all of San Francisco, New York City, Washington, D.C., and Los Angeles all into one megacity,” she says. “It’s hard to beat.” —With reporting by Eloise Barry/London.....»»

Category: topSource: timeOct 1st, 2021

KRE set to break ground for third tower as Journal Square building boom rocks on

KRE Group is set to break ground for its third of it Journal Square apartment towers in Journal Square. Mayor Steve Fulop will do the honors at a ceremony next week marking the completion of Journal Squared Tower 2 and the start of Journal Squared 3.  Journal Squared 2 at... The post KRE set to break ground for third tower as Journal Square building boom rocks on appeared first on Real Estate Weekly. KRE Group is set to break ground for its third of it Journal Square apartment towers in Journal Square. Mayor Steve Fulop will do the honors at a ceremony next week marking the completion of Journal Squared Tower 2 and the start of Journal Squared 3.  Journal Squared 2 at 615 Summit Avenue in Jersey City is a 68-story tower standing 754 feet tall and comprising 704 residences. That building shattered New Jersey leasing records after The Marketing Directors led a campaign that saw all 740 luxury apartments rented within five months of the building opening. Developed by KRE Group and National Real Estate Advisors, the Journal Squared development is part of a construction boom in the neighborhood that will bring thousands of new apartments. In 2010, the city council approved the Journal Square 2060 Redevelopment Plan aimed at sparking redevelopment in the area’s central business district and encouraging new housing, offices commercial and public open space. Rendering of the new Justice Complex As part of that plan, the historic Loews Jersey Theater is being transformed into a $72 million state-of-the-art performance venue, and a new five-story courthouse complex designed by Rafael Viñoly Architects will include a 75-seat public food court, a self-help law library, a children’s play area, training spaces, and a 459-space parking garage. A new museum is also being developed in partnership with France’s Centre Pompidou at the historic Pathside Building at 25 Sip Avenue. Among the developers busy in the neighborhood, Ironstate, in partnership with Panepinto Properties and Kimmel LLC, is building a second Urby tower at 532 Summit Avenue. The company’s first Urby in Downtown JC – built in partnership with Mack-Cali – was completed two years ago. Also in the mix in New York-based HAP, which is building a 42-story tower at 500 Summit Avenue with 902 rental units, retail space and a municipal park, which will be deeded to Jersey City upon completion. Sequoia Development and GRID Real Estate are building a 16-story tower at 289 Jordan Place with 300 rental units and 4,000 s/f of retail space; Namdar Group is behind a 20-story rental at 26 Cottage Street, one of six new towers designed by C3D Architecture the company is developing in and around Journal Square. Namdar Group’s 618 Pavonia Avenue will join the 20-story 26 Cottage Street, where construction is nearing completion, and the 27-story 26-28 Van Reipen Avenue, all high rises that will be connected by Homestead Plaza, a pedestrian plaza within walking distance of the PATH station. Located at the intersection of Pavonia and Summit Avenues with direct access to the Journal Square Transportation Center, the three-tower Journal Squared development will ultimately total 1,840 rental residences and 36,000 s/f of retail and restaurant space in 53-, 60- and 68-story buildings. With thousands of residents living in the two completed residential towers, the development includes Whealth Kitchen, a catering company, café, and bakery owned by David Trotta and Gina Cassese serving the community out of the retail space, and a new pedestrian plaza providing public open space. The post KRE set to break ground for third tower as Journal Square building boom rocks on appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklySep 30th, 2021

Futures Slide, Nasdaq Plunges As Yields Surge And Oil Tops $80

Futures Slide, Nasdaq Plunges As Yields Surge And Oil Tops $80 For much of 2021, a vocal contingent of market bulls had claimed that there is no way the broader market could sell off as long as the gigacap tech "general" refused to drop. Well, it looks like that day is finally upon us because this morning US equity futures are sliding again, continuing their Monday drop as yields from the US to Germany again, the 10Y TSY rising as high as 1.55%, driven to an extent by Fed tapering fears but mostly by the surge in oil which has pushed Brent above $80, the highest price since late 2018. The dollar gained amid the deteriorating global supply crunch from oil to semiconductors. The surge in oil sparked a new round of stagflation fears, sending Nasdaq futures down 240 points or 1.3% as the yield on the benchmark 10-year U.S. Treasury climbed sharply. S&P 500 and Dow Jones futures also retreated, with spoos sliding below 4,400 as to a session low of 4,390. Rising bond yields prompted a shift from growth to cyclical stocks in the United States, in a move that analysts expect could become more permanent after a prolonged period of supressed bond yields. The premarket selloff was led by semiconductor stocks which tracked similar falls for European peers, as a rising 10-year Treasury yield puts pressure on the tech sector. Applied Materials Inc. led a slump in chip stocks in New York premarket trading while Nvidia was down 2.6%, AMD -2.1%, Applied Materials -2.9%, Micron -1.6%. Meanwhile retail trader favorite meme stock Naked Brand Group, an underwear and swimwear retailer, rises again after having surged 40% in the past two trading sessions after Chairman Justin Davis-Rice said in a letter to shareholders that he believes the company has found a “disruptive” potential acquisition in the clean technology sector. Frequency Electronics also soared after being awarded a contract by the Office of Naval Research to develop an atomic clock. Chinese stocks listed in the U.S. were mixed and semiconductor stocks declined. Here are some of the other notable U.S. movers today: iPower (IPW US) shares rise as much as 61% in U.S. premarket trading after the online hydroponics equipment retailer posted 4Q and FY21 earnings Alibaba (BABA US) rises 2.5% in U.S. premarket trading after the company’s shares listed in Hong Kong rose, adding to the Hang Seng Tech Index’s gains Frequency Electronics (FEIM US) soars 20% in U.S. premarket trading after being awarded a contract by the Office of Naval Research to develop an atomic clock Concentrix (CNXC) jumped 5.9% in Monday after hours trading after setting its first dividend payment and buyback program since being spun off from from Synnex in December Brookdale Senior Living (BKD US) shares fell in extended trading on Monday after announcing a $200 million convertible bond offering Altimmune (ALT US) rose as much as 4.2% in Monday postmarket trading on plans to announce results for an early stage study of ALT-801 in overweight people on Tuesday Ziopharm Oncology (ZIOP US) fell in extended trading after company said it cut about 60 positions, or a more than 50% reduction in personnel, to extend its cash runway into 1H 2023 Montrose Environmental Group (MEG US) was down 2.8% Monday postmarket after offering shares via JPMorgan, BofA Securities, William Blair The main catalyst for the stock selloff was the continued drop in Treasurys which sent the 10-year Treasury rising as high as 1.55% while shorter-dated rates surged toward pre-pandemic levels. This in turn was driven by the relentless meltup in commodities: overnight Brent roared above $80 a barrel - on its way to Goldman's revised $90 price target - on louder signs that demand is running ahead of supply and depleting inventories as the world finds itself in an unprecedented energy crisis. The international crude benchmark extended a recent run of gains to hit the highest since October 2018, while West Texas Intermediate also climbed. Oil’s latest upswing has come with a flurry of bullish price predictions from banks and traders, forecasts for surging demand this winter, and speculation the industry isn’t investing enough to maintain supplies. The jump to $80 also is adding inflationary pressure to the global economy at a time when prices of energy commodities are soaring. European natural gas, carbon permits and power rose to fresh records Tuesday, with little sign of the rally slowing. As Bloomberg notes, traders have begun reassessing valuations amid multiplying global risks, while Fed officials have communicated increasingly hawkish signals in recent days as supply-chain bottlenecks threaten to keep inflation elevated. China’s growth slowdown which saw Goldman lower its q/q Q3 GDP forecast to a flat 0.0%, and a debt crisis in the nation’s property market.have also fueled the risk-off shift. "Central bankers have set out how they want to normalize monetary policy for some time,” Chris Iggo, chief investment officer for core investments at AXA Investment Managers, said in a note. “That process could start soon. The realization of this has the potential to provoke some volatility in rates and equities." Elsewhere, European stocks also declined with the Stoxx Europe 600 dragged down most by technology shares. Europe’s Stoxx Tech Index drops as much as 2.8% to a five-week low after falling 1.5% on Monday having previously touched its highest level since 2000 earlier in the month. Single-stock downgrades also weighed. Stocks which performed particularly well this year are among the biggest fallers, with chip equipment makers BE Semi -4.6% and ASML -4.4%, and chipmaker Nordic Semi down 4.2%. Among other laggards, Logitech drops as much as 8.5% after being downgraded to underweight at Morgan Stanley. Earlier in the session, Asian stocks fell for the first time in four days as declines in technology names overshadowed a rally in energy shares.  The MSCI Asia Pacific Index dropped as much as 0.7%, with a jump in U.S. Treasury yields weighing on richly-valued tech stocks. That’s even as the region’s oil and gas shares climbed amid signs of a global energy crunch. Chipmakers Taiwan Semiconductor Manufacturing and Samsung Electronics were the biggest drags on the Asian benchmark. “The climb in yields led to the selling of growth stocks that have been strong, with investors rotating into names that are sensitive to business cycles - not unlike what happened in U.S. equities,” said Shutaro Yasuda, an analyst at Tokai Tokyo Research Center.  Asian equities have been recovering after being whipsawed by concerns over any fallout from China Evergrande Group’s debt troubles. As worries over the distressed property developer abate, the pace of rise in Treasury yields and global inflation data are being closely watched for clues on the U.S. Federal Reserve’s policy stance. Australia’s equity benchmark was among the biggest losers in Asia Tuesday, dragged down by losses in mining and healthcare stocks. Still, broad-based gains in oil explorers and refiners helped mitigate the Asian market’s retreat. In South Korea, importers and distributors of liquefied petroleum gas and liquefied natural gas rallied as the price of natural gas jumped. The future of Evergrande is being forensically scrutinized by investors after the company last Friday did not meet a deadline to make an interest payment to offshore bond holders. Evergrande has 30 days to make the payment before it falls into default and Shenzen authorities are now investigating the company's wealth management unit. Without making reference to Evergrande, the People's Bank of China (PBOC) said Monday in a statement posted to its website that it would "safeguard the legitimate rights of housing consumers". Widening power shortages in China, meanwhile, halted production at a number of factories including suppliers to Apple Inc and Tesla Inc and are expected to hit the country's manufacturing sector and associated supply chains. Analysts cautioned the ongoing blackouts could affect the country's listed industrial stocks. "What we see in China with the developers and the blackouts is going to be a negative weight on the Asian markets," Tai Hui, JPMorgan Asset Management's Asian chief market strategist told Reuters. "Most people are trying to work out the potential contagion effect with Evergrande and how far and wide it could go. We keep monitoring the policy response and we have started to see some shift towards supporting homebuyers which is what we have been expecting." In rates, as noted above, the selloff in Treasuries gathered pace in Asia, early Europe session leaving yields cheaper by 3.5bp to 5.5bp across the curve with 20s and 30s extending above 2% and 10-year through 1.50%. Treasury 10-year yields traded around 1.53%, cheaper by 4.5bp on the day after topping at 1.55%, highest since mid-June; in front- and belly, 2- and 5-year yields remain near cheapest levels in at least 18 months; in 10-year sector, gilts lag by 3bp vs. Treasuries while German yields are narrowly richer. Gilts underperformed further, where long-end yields are cheaper by up to 7.5bp on the day. Treasury futures volumes over Asia, early European session were at more than twice usual levels, with most activity seen in 10-year note contract; eurodollar futures volumes were also well above recent average. With recent aggressive move higher in yields, threat of convexity hedging has exacerbated moves as rate hike premium continues to filter into the curve after last week’s FOMC. Auctions conclude Tuesday with 7-year note sale, while busy Fed speaker slate includes Fed Chair Powell. In FX, the Bloomberg dollar index reached the highest level in more than a month as rising energy costs drove up Treasury yields for a fourth session. The dollar gained against all its peers; Japan’s currency slid for a fifth day against the greenback before a speech Tuesday from Fed Chair Jerome Powell who will say inflation is elevated and is likely to remain so in coming months, according to prepared remarks. Treasury two-year yields rose to the highest since March 2020. “Dollar-yen saw the clearest expression of Treasury yield increases and we attributed this divergence to the surge in energy prices,” says Christopher Wong, senior foreign-exchange strategist at Malayan Banking in Singapore. U.S. natural gas futures soared to their highest since February 2014 on concern over tight inventories. Brent oil topped $80 a barrel amid signs demand is outrunning supply. The euro slipped to hit its lowest level since Aug. 20, nearing the year-to-date low of $1.1664. The Treasury yield curve bear steepened; euro curves followed suit, with the yield on U.K. 10-year notes soaring past 1% for the first time since March 2020 on the prospects for Bank of England policy tightening. In commodities, Crude futures extend Asia’s gains. WTI rises as much as 1.6% to highs of $76.67 before stalling. Brent holds above $80. Spot gold trades around last week’s lows near $1,740/oz. Base metals are mixed: LME aluminum outperforming, rising as much as 1.1%; nickel and copper are in the red. Looking at the day ahead, one of the main highlights will be the appearance of Fed Chair Powell, and Treasury Secretary Yellen at the Senate Banking Committee. Otherwise, central bank speakers include ECB President Lagarde, Vice President de Guindos, and the ECB’s Schnabel, Panetta and Kazimir, along with the BoE’s Mann and the Fed’s Evans, Bowman and Bostic. US data highlights include the US Conference Board’s consumer confidence indicator for September and the FHFA house price index for July. Market Snapshot S&P 500 futures down 0.7% to 4,403.50 STOXX Europe 600 down 1.2% to 456.83 MXAP down 0.4% to 200.06 MXAPJ down 0.4% to 641.05 Nikkei down 0.2% to 30,183.96 Topix down 0.3% to 2,081.77 Hang Seng Index up 1.2% to 24,500.39 Shanghai Composite up 0.5% to 3,602.22 Sensex down 1.4% to 59,209.94 Australia S&P/ASX 200 down 1.5% to 7,275.55 Kospi down 1.1% to 3,097.92 Brent Futures up 0.8% to $80.15/bbl Gold spot down 0.4% to $1,742.61 U.S. Dollar Index up 0.20% to 93.57 German 10Y yield rose 2.7 bps to -0.196% Euro down 0.1% to $1.1681 Top Overnight News from Bloomberg Chinese authorities are striving to signal to traders that whatever happens to China Evergrande Group, its debt crisis won’t spiral out of control or derail the economy Brent oil roared above $80 a barrel, the latest milestone in a global energy crisis, on signs that demand is running ahead of supply and depleting inventories As the dust settles on Germany’s election, control over the finances of Europe’s largest economy could fall to a 42-year-old former tech entrepreneur who wants to lower taxes and tighten spending Wells Fargo agreed to pay $37 million in penalties and forfeiture to settle U.S. claims that it overcharged almost 800 commercial customers that used its foreign exchange services, the latest in a series of scandals at the bank A more detailed look at global markets courtesy of Newsquawk Asian equity markets traded mixed following on from a Wall Street lead where value outperformed growth and tech suffered as yields rose. ASX 200 (-1.5%) was the laggard with losses in healthcare, gold miners and tech frontrunning the declines which dragged the index beneath 7300. Nikkei 225 (-0.2%) was lacklustre and briefly approached 30k to the downside but then bounced off worse levels amid a softer currency, while the KOSPI (-1.1%) also declined following a suspected North Korean ballistic missile launch and with a recent South Korean court order to sell seized Mitsubishi Heavy assets as compensation for wartime forced labour, threatening a flare up of tensions between Japan and South Korea. Hang Seng (+1.2%) and Shanghai Comp. (+0.5%) were underpinned after the PBoC continued to inject liquidity ahead of the approaching National Day holidays and with Hong Kong led higher by strength in property names after the PBoC stated it will safeguard legitimate rights and interests of housing consumers which also provided Evergrande-related stocks further reprieve from their recent sell-off. Finally, 10yr JGBs retreated on spillover selling from T-notes after yields rose on the back of further Fed taper rhetoric and with prices not helped by the uninspiring 2yr and 5yr auctions stateside, while weaker results at the 40yr JGB auction also provided a headwind for prices. Top Asian News Top-Performing Global Luxury Stock Seen Cooling After 680% Gain China Power Price Hike Sought Amid Supply Crunch: Energy Update Macau Evacuates Airport Quarantine Hotel After Outbreak Iron Ore Dips Again as China Power Crisis Adds to Steel Curbs Bourses in Europe extended on the losses seen at the cash open and trade lower across the board (Euro Stoxx 50 -1.7%; Stoxx 600 -1.7%) as sentiment retreated from a mixed APAC handover as month-end looms alongside tier 1 data and a slew of central bank speakers. US equity futures have also succumbed to the mood in Europe alongside the surge in global yields – which takes its toll on the NQ (-1.5%) vs the ES (-0.8%), YM (-0.4%) and RTY (-0.3%). From a more technical standpoint, ESZ1 fell under its 50 DMA (4,431) and tested the 4,400 level to the downside, whilst NQZ1 briefly fell under 15k and the YMZ1 inches towards its 100 DMA (34,489). Back to Europe, the FTSE 100 (-0.4%) sees losses to a lesser extent vs its European peers as energy prices and yields keep the index oil giants and banks supported – with some of the top gainers including Shell (+2.8%), BP (+2.1%). Sectors in Europe are predominantly in the red, but Oil & Gas buck the trend. Sectors also portray more of a defensive bias, whilst the downside sees Tech, Real Estate, and Travel & Leisure at the foot of the bunch, with the former hit by the rise in yields, which sees the US 10yr further above 1.50%, the 20yr above 2.00% and the UK 10yr hitting 1.00% for the first time since March 2020. In terms of individual movers, Smiths Group (+3.8%) is at the top of the Stoxx 600 following encouraging earnings. ING (+0.3%) holds onto gains after sources noted SocGen's (-0.6%) interest in ING's retail banking arm. Finally, chip-maker ASM International (-3.5%) has succumbed to the broader tech weakness despite upping its guidance and announcing capacity expansion by early 2023. Top European News U.K. 10-Year Yield Rises Past 1% for First Time Since March 2020 Goldman’s Petershill Unit Valued at $5.5 Billion in U.K. IPO Go-Ahead Sinks as U.K. Takes Over Southeastern Rail Franchise Hedge Funds and Private Equity Are Targeting European Soccer In FX, It took a while for the index to breach resistance ahead of 93.500, but when US Treasuries resumed their bear-steepening run and the intensity of the moves in futures and cash picked up pace the break beyond the half round number was relatively quick and decisive. Indeed, the DXY duly surpassed its post-FOMC peak (93.526) and a prior recent high from August 19 (93.587) on the way to reaching 93.619 amidst almost all round Dollar gains, as 5, 10, 20 and 30 year yields all rallied through or further above psychological levels (such as 1%, 1.5% and 2% in the case of the latter two maturities). However, petro and a few other commodity currencies are displaying varying degrees of resilience in the face of general Greenback strength that is compounded by buy signals for September 30 rebalancing on spot month, quarter and half fy end. Ahead, trade data, consumer confidence, more regional Fed surveys, speakers and the 7 year auction. NZD/CHF/JPY/AUD - The Kiwi was already losing altitude above 0.7000 vs its US counterpart and 1.0400 against the Aussie on Monday, so the deeper retreat is hardly surprising to circa 0.6975 and 1.0415 awaiting some independent impetus that may come via NZ building consents tomorrow. Meanwhile, the Franc has recoiled towards 0.9300 in advance of comments from SNB’s Maechler and the Yen continues to suffer on the aforementioned rampant yield and steeper curve trajectory on top of a more pronounced 1+ sd portfolio hedge selling requirement vs the Buck, with Usd/Jpy meandering midway between 110.94-111.42 parameters irrespective of renewed risk aversion due to same bond rout dynamic. Back down under, Aud/Usd has faded from around 0.7311 to the low 0.7260 area, though holding up a bit better in wake of not quite as weak as forecast final retail sales overnight. CAD/EUR/GBP - All softer against their US rival, but the Loonie putting up a decent fight with ongoing help from WTI crude that has now topped Usd 76.50/brl, and Usd/Cad also has decent option expiry interest to keep an eye on given 1.2 bn rolling off at 1.2615 and an even heftier 3 bn at 1.2675 compared to current extremes spanning 1.2693-1.2652. Elsewhere, the Euro has lost its battle to stay afloat of multiple sub-1.1700 lows even though EGBs are tumbling alongside USTs and the same goes for Sterling in relation to the 1.3700 handle irrespective of the 10 year Gilt touching 1% for the first time since March 2020. SCANDI/EM - Brent’s advances on Usd 80 brl have been offset to an extent by soft Norwegian retail sales data, as the Nok pares more of its post-Norges Bank gains, while the Sek looks somewhat caught between stalls following a recovery in Swedish consumption, but big swing in trade balance from surplus to larger deficit. However, the Try is taking no delight from the costlier price of oil or remarks from Turkey’s Deputy Finance Minister contending that interest rates can move lower by reducing the current account and budget deficits, or conceding that Dollarisation is a problem and steps need to be taken to enhance confidence in the Lira. Conversely, the Cnh and Cny are still holding a firm line following another net injection of 2 week funds from the PBoC and the Governor saying that China will lengthen the period for the implementation of normal monetary policy, adding that it has conditions to keep a normal and upward yield curve, as it sees no need to purchase assets at present. In commodities, WTI and Brent futures have extended on the gains seen during APAC hours, which saw the Brent November contract topping USD 80/bbl, albeit the volume and open interest has migrated to the December contract – which topped out just before the USD 80/bbl mark. WTI November meanwhile advanced past the USD 76/bbl mark to a current peak at USD 76.67/bbl (vs low USD 75.21/bbl). Desks have been attributing the leg higher to tight supply – with the UK fuel situation further deteriorating amid a shortage of drivers coupled with panic buying. It's worth bearing in mind that the demand side of the equation has also seen supportive, with the US announcing the lifting of international travel curbs recently alongside the economic resilience to the Delta variant heading into the winter period. Traders would also be keeping an eye on the electricity situation in China, which in theory would provide tailwinds for diesel demand via generators, although this could be offset by a slowdown in economic activity due to power outages. There has also been growing noise for OPEC+ to hike output beyond the monthly plan of 400k BPD, with some African nations also struggling to ramp up production due to maintenance issues and lack of investments. Ministers recently noted that the plan would be maintained at next week's confab. As a reminder, the OPEC World Oil Outlook is set to be released at 13:30BST/08:30EDT, although the findings may be stale given the recent developments in crude dynamics. Major banks have also provided commentary on Brent following Goldman Sachs' bullish call recently, with Barclays upping its forecast for both benchmarks due to supply deficits, whilst Morgan Stanley maintained its forecast but suggested that the USD 85/bbl Brent scenario clearly exists. MS also noted that oil inventories continue to draw at high rates and suggest that the market is more undersupplied than generally perceived; the analysts see the market undersupplied into 2022 amid its expectation for further OPEC discipline. Nat gas also remains in focus, with prices +11% at one point, whilst Russia's Kremlin said Russia remains the safeguard of natural gas to Europe and Gazprom is ready to discuss new gas supply contracts with increased volumes to meet rising European demand. It's also worth being aware of the increasing likelihood of state intervention at these levels as nations attempt to save or at least cushion consumers and company margins. Elsewhere, precious metals are under pressure as the Buck remains buoyant, with spot gold still under USD 1,750/oz as it inches closer to the 11th August low of USD 1,722/oz. Spot silver remains within recent ranges above USD 22/oz. Overnight Chinese nickel and tin prices extended losses with traders citing subdued demand, whilst coking coal and coke futures leapt on tight supply. US Event Calendar 8:30am: Aug. Advance Goods Trade Balance, est. -$87.3b, prior -$86.4b, revised -$86.8b 8:30am: Aug. Retail Inventories MoM, est. 0.5%, prior 0.4%; Wholesale Inventories MoM, est. 0.8%, prior 0.6% 9am: July S&P CS Composite-20 YoY, est. 20.00%, prior 19.08% 9am: July S&P/CS 20 City MoM SA, est. 1.70%, prior 1.77% 9am: July FHFA House Price Index MoM, est. 1.5%, prior 1.6% 10am: Sept. Conf. Board Consumer Confidence, est. 115.0, prior 113.8 Expectations, prior 91.4 Present Situation, prior 147.3 10am: Sept. Richmond Fed Index, est. 10, prior 9 Central Bank Speakers 9am: Fed’s Evans Makes Welcome Remarks at Payments Conference 10am: Powell and Yellen Appear Before Senate Banking Panel 1:40pm: Fed’s Bowman Speaks at Community Bank Event 3pm: Fed’s Bostic Discusses the Economic Outlook 7pm: Fed’s Bullard Discusses U.S. Economy and Monetary Policy DB's Jim Reid concludes the overnight wrap What a difference a week makes. You hardly hear the word Evergrande now. We asked in a flash poll last week whether we would still be talking about it in a month or whether it would be a distant memory by then. Maybe we should have narrowed the time frame to a week! We’ve quickly moved on to rate hikes and rising bond yields as the topic de jour. A further rise in the Bloomberg Commodity Spot Index (+1.87%) to a fresh high for the decade helped reinforce the move. Indeed, sovereign bond yields moved higher once again yesterday amidst a sharp rise in inflation expectations, with those on 10yr Treasury yields rising +3.6bps to 1.487%, their highest level in over 3 months. Meanwhile the 2yr yield rose +0.8bps to 0.278%, its highest level since the pandemic began, which comes on the back of last week’s Fed meeting that prompted investors to price in an initial rate hike from the Fed by the end of 2022. The moves in Treasury yields were almost entirely driven by higher inflation breakevens, with 10yr breakevens up +3.7bps. That echoed similar moves in Europe, where the German 10yr breakeven (+4.7bps) hit a post-2013 high of 1.653%, and their Italian counterparts (+3.9bps) hit a post-2011 high. The biggest move was in the UK however, where the 10yr breakeven (+13.2bps) reached its highest level since 2008, which comes amidst a continued fuel shortage in the country, alongside another rise in UK natural gas futures, which were up +8.20% yesterday to £190/therm, exceeding the previous closing peak set a week earlier. We were waiting for the wind to blow in this country to get alternatives back on stream and boy did it blow yesterday but with no impact yet on gas prices. Lower real rates dampened the rise in yields across the continent, though yields on 10yr bunds (+0.5bps), OATs (+0.9bps), BTPs (+1.3bps) and gilts (+2.7bps) had all moved higher by the close of trade. Those spikes in commodity prices were evident more broadly yesterday, with energy prices in particular seeing a major increase. Brent crude oil prices were up +1.84% to $79.53/bbl, marking their highest closing level since late-2018, and this morning in trading they have now exceeded the $80/bbl mark with a further +0.94% increase. It was much the same story for WTI (+1.99%), which closed at $75.45/bbl, which was its own highest closing level since 2018 too. And those pressures in UK natural gas prices we mentioned above were seen across Europe more broadly, where futures were up +8.92%. With yields moving higher and inflationary pressures growing stronger, tech stocks struggled significantly yesterday, with the NASDAQ down -0.52%. The megacap tech FANG+ index fell -0.15% on the day, but was initially down as much as -1.7% in early trading. The NASDAQ underperformed the S&P 500, which was only down -0.28%, but that masked significant sectoral divergences, with interest-sensitive growth stocks struggling, just as cyclicals more broadly posted fresh gains. More specifically, energy (+3.43%), bank (+2.29%) and autos (+2.19%) led the S&P, while biotech (-1.65%) and software (-1.39%) shares were among the largest laggards. European equities were also pretty subdued, with the STOXX 600 down -0.19%, though the DAX was up +0.27% following the results of the German election, which removed the tail risk outcome of a more left-wing coalition featuring the SPD, the Greens and Die Linke. Staying on the political scene, we are now less than 72 hours away from a potential US government shutdown as it stands. As was expected, Republicans in the Senate blocked the House-passed measure to fund the government for another 2 months and raise the debt ceiling for 2 years. While Democrats have not put forward their alternative strategy if Republicans refuse to vote to lift the debt ceiling, their only option would be to attach it to the budget reconciliation plan that currently makes up much of the Biden economic agenda. In an effort to keep all party members on board, Speaker Pelosi moved the vote on the $550bn bipartisan infrastructure bill to Thursday in order to give all sides more time to finish the larger budget bill and pass both together. It is a going to be a very busy Thursday, since Congress will have to also pass the funding bill that day. Republicans and Democrats already agree on a funding bill to keep the government open that does not include the debt ceiling increase so it is just a matter of how exactly the debt ceiling provision goes through without a Republican Senate vote. Overnight in Asia, equity indices are seeing a mixed performance. On the one hand, most of the region including the Nikkei (-0.24%) and KOSPI (-0.80%) are trading lower as investors begin to price in tighter monetary policy from the Fed. However, the Hang Seng (+1.50%), Shanghai Composite (+0.53%) and CSI (0.38%) have all advanced after the People’s Bank of China said that they would ensure a “healthy property market”. Looking forward, US equity futures are pointing to little change, with those on the S&P 500 down just -0.05%, and 10yr Treasury yields have risen +1.9bps this morning to trade above 1.50% again. Back to the German election, where the aftermath yesterday saw various party leaders assess the results and stake their claims to participate in a new coalition. As a reminder, the SPD came in first place with 25.7%, but the CDU/CSU weren’t far behind on 24.1%, making it mathematically possible for either to form a government in a coalition with the Greens and the FDP. The SPD’s chancellor candidate, Finance Minister Olaf Scholz, appealed for the Greens and FDP to join him in forming a government, and told the media that he wanted to form a coalition before Christmas. Meanwhile Green co-leader Robert Habeck said that “Of course there is a certain priority for talks with the SPD and the FDP”, but said that this didn’t mean they wouldn’t speak with the CDU/CSU either. As the SPD were calling for an alliance, the tone sounded more negative from the CDU’s leadership, even though Armin Laschet said that he had not given up on the idea of forming a government. Notably, Laschet said that no party was able to draw a clear mandate from the result, including the SPD, and this echoed remarks from the CSU leader Markus Söder, who said that the conservatives had no mandate to form a government, though they could “make an offer out of a sense of responsibility for the country.” Meanwhile, attention will turn to the FDP and the Greens to see which way they’re leaning when it comes to forming a government. FDP leader Lindner said that he would hold preliminary talks with the Greens, after which they would be open to invitations from either the SPD or the CDU/CSU for further discussions. Back on the UK, there was an interesting speech from BoE Governor Bailey yesterday, where he echoed the line from the MPC minutes last week, saying that “all of us believe that there will need to be some modest tightening of policy to be consistent with meeting the inflation target sustainable over the medium-term”. However, he also said that their view was that “the price pressures will be transient”, and that “monetary policy will not increase the supply of semi-conductor chips … nor will it produce more HGV drivers.” He then further added that tighter policy “could make things worse in this situation by putting more downward pressure on a weakening recovery of the economy”. So a bit of a mixed message of backing rate hike expectations but warning about its impact on growth. Over in the US we heard from a host of Fed speakers with Governor Brainard saying that while “employment is still a bit short of the mark” of “substantial further progress”, she expects that the labour market will recover enough to start tapering asset purchases soon. Separately on the inflation debate, Minneapolis Fed President Kashkari argued that this year’s pickup in US inflation has been a byproduct of the supply disruptions associated with Covid and that policy makers should not react to it just yet. He cited the need to get US employment back up as the Fed’s “highest priority”. New York Fed President Williams agreed with his colleague, saying that “this process of adjustment may take another year or so to complete as the pandemic-related swings in supply and demand gradually recede.” And Chicago Fed President Evans is even worried about downside inflation risks, as he is " more uneasy about us not generating enough inflation in 2023 and 2024 than the possibility that we will be living with too much.” Lastly, news came out yesterday that Boston Fed President Rosengren will retire this week due to health concerns. He was due to step down in June regardless as there is a mandatory retirement age of 65. Dallas Fed President Kaplan also announced his retirement yesterday, which will take effect October 8th. Both officials have drawn scrutiny in recent days stemming from their recent disclosure of trading activity over the last year, though the activity did not violate the Fed’s ethics code even as Fed Chair Powell announced an official review of those rules. The Boston Fed President will be a voting member on the FOMC next year, and the Dallas Fed President in 2023. Running through yesterday’s data, the preliminary reading for US durable goods orders in August showed growth of +1.8% (vs. +0.7% expected), and the previous month was also revised up to show growth of +0.5% (vs. -0.1% previously). Meanwhile core capital goods orders grew by +0.5% (vs. +0.4% expected), and the previous month’s growth was revised up two-tenths. Finally, the Dallas Fed’s manufacturing activity index for September came in at 4.6 (vs. 11.0 expected) – its lowest reading since July 2020. To the day ahead now, and one of the main highlights will be the appearance of Fed Chair Powell, and Treasury Secretary Yellen at the Senate Banking Committee. Otherwise, central bank speakers include ECB President Lagarde, Vice President de Guindos, and the ECB’s Schnabel, Panetta and Kazimir, along with the BoE’s Mann and the Fed’s Evans, Bowman and Bostic. US data highlights include the US Conference Board’s consumer confidence indicator for September and the FHFA house price index for July. Tyler Durden Tue, 09/28/2021 - 07:52.....»»

Category: blogSource: zerohedgeSep 28th, 2021

To Avoid "Messy Collapse", Beijing Prods SOEs To Buy Evergrande Assets Including World"s Largest Soccer Stadium

To Avoid "Messy Collapse", Beijing Prods SOEs To Buy Evergrande Assets Including World's Largest Soccer Stadium Last Friday, when we reported that "China Steps In To Ensure Evergrande Funds Used To Complete Housing Project, Not Pay Creditors", we asked if this was the start of China's not-so-stealthy rescue of Evergrande. The answer appears to be yes because as Reuters reports this morning, Beijing is increasingly prodding government-owned firms and state-backed property developers such as China Vanke to purchase some of Evergrande's assets. Or rather "assets", because the company has tried and failed to sell all sellable assets before. It is now Beijing's hope that by forcing SOEs to purchase these underperforming assets, that Evergrande's liquidity situation is improved at least for the time being. As we discussed previously, hoping to avoid the optics of yet another full-blown bailout, the central government is unlikely to intervene directly to resolve Evergrande's crisis in the form of a bailout. Instead, "Beijing hopes that asset purchases will ward off or at least mitigate any social unrest that could occur if Evergrande were to suffer a messy collapse." Not surprisingly, what Beijing wants it gets and according to a source, a handful of government-owned enterprises have already done due diligence on assets in the southern Chinese city Guangzhou. In one example, Guangzhou City Construction Investment Group is close to acquiring Evergrande's Guangzhou FC Soccer stadium and surrounding residential projects. Set to cost around 12 billion yuan ($1.9 billion), the stadium has been designed to seat more than 100,000, making it the world's largest venue built for soccer by capacity. Of course, in keeping with the epic charade that this is not Beijing funneling cash into the broke developer but "third parties", the potential buyers of Evergrande's core assets in Guangzhou have been "arranged" with "both political and commercial considerations" in mind, the Reuters source said, adding that authorities don't want to see just a few companies bidding for the same assets. Vanke and China Jinmao Holdings are among government-backed property developers that have been asked to purchase assets from Evergrande. China Resources Land has also been asked, one source said. Vanke, which is one-third owned by Shenzhen's state-owned subway operator, said in August it has talked with Evergrande about cooperating on various projects. While expectations are high that it will undergo one of the largest-ever restructurings in China, government bodies have been largely silent on the potential for a bailout or how they might deal with a collapse. The reason is simple: Beijing which has been engaged in a years-long deleveraging campaign, does not want to show to the world that even a modest hiccup will force it to go back to square one, and so it is engaging in this elaborate charade where it refuses to let Evergrande fail but will never admit it is indirectly bailing it - if not its shareholders - out. Indeed, Beijing has worked to curb any downstream effect on the financial system from Evergrande’s troubles, with the central bank pledging on Monday to protect consumers exposed to the housing market and injecting more cash into the banking system. One of the first signs of an official inquiry into the real estate giant came this week when the Shenzhen government's financial regulator said an investigation had been opened into an Evergrande wealth management unit. Reuters reported that local governments have been asked to mediate with government-backed groups and companies so they can participate in Evergrande's reorganization and asset sales. That said, any action taken by local governments will depend on the extent of Evergrande's presence in those areas and the local finances of that particular province or city, the sources also said. They added that regulators will first assess the funding situation of all Evergrande's businesses before taking any action on its liquidity situation. "What kind of committee should be set up is a second story; it depends on the debt situation," said one regulatory source. * * * Separately, having missed the payment of $83.5 million in interest to offshore bondholders last week, Bloomberg reports that some holders of a bond issued by a company called Jumbo Fortune Enterprises are forming a committee to press their claims in the event of a default because they maintain China Evergrande Group is a guarantor of the debt. The $260 million note from Jumbo Fortune Enterprises matures Oct. 3, according to data compiled by Bloomberg. The dollar note is guaranteed by China Evergrande Group and its unit Tianji Holding. Jumbo Fortune is a joint venture whose owners include Hengda Real Estate, Evergrande’s main onshore unit, according to a local bond prospectus published in April by Hengda. Notably, unlike last week's coupon payment which has a 30 day grace period, the effective due date on the bonds is the following day. The guarantees from Evergrande and Tianji Holding constitute direct, unconditional and unsubordinated obligations and rank on at least on an equal footing with the other unconditional and unsubordinated obligations of the guarantors, according to the people. Five business days would be allowed if any failure to pay were due to administrative or technical error, though beyond that there would be no grace period, the people said. This would mean that the deadline is Evergrande’s largest debt test since regulators recently urged the company to avoid defaulting on dollar bonds. Tyler Durden Tue, 09/28/2021 - 08:25.....»»

Category: blogSource: zerohedgeSep 28th, 2021