Let's hope the bad days are in the past and we will see long term growth in the future. Granted I would like the price to stay down a while longer while I accumulate.
PARSIPPANY, N.J., April 17, 2015 /PRNewswire/ -- As tenants continue to scour New Jersey for the best available options, a flight to quality is buoying the state's office market, according to Transwestern's first-quarter 2015 Office Market report. Despite large move-outs nudging the state's vacancy rate to 16.3 percent, from 16.2 percent the previous quarter, increased leasing velocity resulted in tightened occupancy in 13 of New Jersey's 21 submarkets. Other sectors of the office market are also performing well:
•Class A leasing outpaced vacated space for the fourth consecutive quarter, with more than 2.6 million square feet absorbed during the past 12 months.
•Of New Jersey's 21 submarkets, 17 recorded positive absorption year-over-year, while 13 saw positive absorption quarter-over-quarter.
•Despite a slight quarterly setback, asking rents continued to trend upward when compared year-over-year. At $24.91 per square foot, the first-quarter 2015 average is $0.25 higher than a year ago.
•Since first-quarter 2014, the Parsippany Region in Morris County outperformed all other submarkets, absorbing nearly 640,000 square feet of office space, primarily in buildings that have been upgraded with enhanced amenities.
•Large corporations continue to sell office product in which they have been longtime occupants. In sale-leaseback cases, investors benefit from having a quality tenant in place, while in other cases, the new owner may see value-add opportunities to purchase a well-located, distressed asset at a discounted basis and redevelop it or lease at very aggressive rental rates.
Ok, I have a question on that and I know I should know the answer but I don't. I am not certain Blackstone owns any shares. Correct me if I am wrong, but is it that a fund put together by Blackstone bought Hilton and if the Hilton does go up from the price paid Blackstone gets a profit percentage/carried interest. And Blackstone LP itself does not own any direct shares. Granted they could own some of the fund that bought Hilton in addition to the carried interest. Just asking because it is something I always wondered about.
It is interesting. I am accumulating. I think it was this morning the WSJ had an article on another Chinese insurance company buying a Boston office building. I would bet they paid more than a 10 cap but from my quick scan I don't think they got into the metrics. I just have to think that once income starts to move up again that this will have a 14 FFO price. I am buying it like a bond with a land bank and large opportunities for stable growth into the future. I sure hope I am not way wrong for accumulating..
First off, I am very long and own a lot. But I do want to vent. Does anyone else lease from Equity Office? I have been in a beautiful B Plus building for about 15 years. Equity has owned it for several years. They have 'fixed" it up to I presume sell it. But they turned a B plus to a C plus. Who does that? They went with the Costco public restrooms look for the bathrooms. Put in fixtures that you can't wash your hand with. This causes everyone to twist the water spout which torques Equity because they say it is striping the pipes. They took off beautiful bricks and repainted with #$%$ painted walls. The door fixtures have big gaps. Pure #$%$ that they spent good money on that could have gone to the LP holders.
OK, done venting. Go BX!
And it is down today because I bought more. I guess it is OK that the price has stayed down as I seek to accumulate. Lord I hope income turns and the residential projects pay off.
Back in the day, pre 2009, BEE paid a dividend of I believe 93 cents per share. When the wheels started coming off the tracks, former CEO Lawrence Geller said "the dividend is safe". A few months later the common and prefs. all had the dividends eliminated as BEE had a near death experience. During the subsequent years, old man Geller would say things like how important the dividend is for people and it would be restored as soon as possible. But the name of the game for all reits these days is to delverage and so BEE has been paying down debt, issuing more shares to pay off the prefs. and all things related to lowering the risk of leverage. But at the present BEE has NOLs left over form the dark days and since they don't have taxable income, no requirement to pay a dividend. Now they have changed their tune from "we will reinstate the dividend as soon as possible" it has become "we asked the richest man in the world, Bill Gates, about the dividend, and he does not want it reinstated." Granted I guess it does make sense not too. So that in a nutshell is the history of the dividend.
Yes, on the concentration part especially sine they said in the last CC they wanted elsewhere so they did not have a concentration risk. But, it is the Montage. Good interview with the Hotel Del manager in a Coronado paper yesterday. January revpar was up 20%. I sure hope that can stay.
The La Jolla Light finally came out with this story. I was going to give them the heads up. Anyhow, this is an incredible location. The only problem is it will take hundreds of years for the historical Red Rest and Red Roost to fall in on itself. But this is going to be fascinating to see what can be done. Granted it my be my great, great, great, great grandchildren that see it happen. Sorry I can't do a link.
Given that strategic hotels just paid 1.4 million per room for the Montage in Laguna I am really curious about the LJ cove hotel aiv Bought. Granted it is not the same, I do wonder what the potential is. Granted its present use is probably best for now.
Well, I don't think it is a plus or a minus. I had hoped they would pay cash for the new four seasons and I think the market liked that plan. Hopefully they have plans for another acquisition . It would also be nice to refi the st. Francis at a lower rate and then reinstate a decent dividend.
I was thinking about the fuel thing as well. I have some more dividends coming in in a few days, maybe I will pick some more up.
I greatly appreciate Tony Abbot trying to school our moronic president on Climate Change. The efforts of the Aussies in trying to roll back the insanity is greatly appreciated!
I take it you are a millennial. It was interesting, Reason Magazine did a survey of millennials and found that they used the word socialist, but had no idea what it meant.
Yup. At the time it seemed insane. I really can't believe the Fing board went ahead and approved that moron's plans.
I was going to buy for the credit, but the price seems high. I think I will hold off until I think I may be going on another cruise. But does anyone else think the price is a tad high? I have 60 shares. Who, knows, maybe I should have gone in and closed on the rest that I need.
What could he have done differently? It seems like it would have been worse not to move I to multi family. Granted I really don't know New Jersey.
There is no way they can raise prices more. The only hope is group stays strong with onsite spending.
I don't think you can get more than 14 times FFO. 20 times FFO does not get you to $20.