|Day's Range||2.7000 - 2.7000|
Office REIT Mack-Cali said it does not plan to renominate four Bow Street-nominated directors to its board. Bow Street says Mack-Cali is showing “blatant disregard for even the most basic principles of corporate governance.”
WhyHotel is bringing its pop-up hotel rooms to another Ballston apartment building. The temporary lodging startup will soon offer 125 units for travelers at 4000 N. Fairfax Drive, the apartment tower that took the place of the popular Carpool bar. The Arlington County Board gave the company the green light on Saturday to open in the building.
The real estate sector includes companies that own, develop, and manage residential, commercial, and industrial properties. Each of these three real estate segments includes publicly traded real estate investment trusts (REITs).
Commercial real estate experts agree it’s too early to tell how or when vulnerabilities will come to the fore as the global economy implodes under the strains of the COVID-19 pandemic, but what’s clear is the dominoes are in motion.
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
(Bloomberg) -- Toys “R” Us Inc. creditors filed a lawsuit accusing the defunct retailer’s executives and private-equity owners of fraud and breach of fiduciary trust.Former Chief Executive Officer David Brandon and other directors misrepresented the toyseller’s ability to repay creditors after it filed for bankruptcy in 2017 while collecting millions in bonuses and advising fees, according to the complaint filed in New York Supreme Court. The case is being brought by a trust created for creditors, including toymakers.Toys “R” Us liquidated in 2018, leaving those vendors and workers scrambling for funds too limited to meet all claims. That’s prompted years of recrimination against onetime owners KKR & Co., Bain Capital, and Vornado Realty Trust, who bought the company in 2005 in a deal that critics said left the retailer unable to make investments to remain competitive.A lawyer representing Toys’ former executives and directors called the lawsuit “baseless” and said the group would defend against it “vigorously.”“At all times, the former directors and officers of Toys “R” Us and members of management acted in the best interests of the company and its stakeholders. Because none of the named defendants has any financial exposure, this lawsuit is just a misguided effort to pressure insurance carriers to pay meritless claims,” Bob Bodian of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C. said in an emailed statement.No HopeThe suit claims that the company’s stewards didn’t disclose that Toys had to meet certain milestones it had no hope of achieving when it took on a $3.1 billion bankruptcy loan, and that it misrepresented the company’s financial situation to avoid losing that funding.“The DIP financing strategy was not only a foolish gamble, it was a very expensive gamble,” the complaint says, claiming that it cost Toys more than $700 million in financing fees, interest, professional fees, and additional operating losses that were borne not by Bain, KKR, and Vornado, but trade creditors and employees.Managers assured suppliers that Toys wouldn’t default and that they could continue shipping on credit right up until the company announced its liquidation, resulting in more than $600 million in losses to vendors, the suit says.“The directors gave no consideration -- none at all -- to assessing the probability that the DIP financing strategy would fail,” the creditors say, and refused to consider alternatives such as selling parts of the company. Nor did executives make needed cost cuts, even as sales withered and the company’s chances for recovery narrowed.Unusually ContentiousThe situation has been unusually contentious, according to Greg Dovel, one of the lawyers who brought the case, which he said came months after negotiations among the parties stalled. Dovel said in an interview that he spoke with more than 100 parties while preparing the litigation.“We talked to a lot of trade creditors in gathering evidence,” he said. “Years later, they still have a great deal of anger over this. They really want their day in court.”The suit also asserts that Brandon and other executives awarded themselves $16 million in bonuses on the eve of the company’s bankruptcy filing, while KKR, Bain and Vornado collected more than $250 million in advising fees from the time of their acquisition, including after the company became insolvent in 2014.Executives on an earnings conference call in December 2017, “failed to mention the disastrous holiday results,” and Brandon spoke of the company’s plan to emerge from bankruptcy and its “bright future,” according to court papers. The company also misrepresented its situation when it met manufacturers at a major industry trade show that February -- though at that point they knew a significant lender group was in favor of a liquidation, creditors said in court documents. Instead, Brandon told attendees at a roundtable that the company would emerge from bankruptcy.The company didn’t stop ordering goods until March 14, the day before it announced it was liquidating.After the company’s collapse left 33,000 workers without severance, its owners came under intense pressure from former employees and high-profile politicians like former presidential candidates Elizabeth Warren and Cory Booker to create a fund to pay severance. KKR and Bain created a $20 million fund in late 2018.To contact the reporter on this story: Lauren Coleman-Lochner in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, Nicole BullockFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Sustainability Accounting Standards Board, which hopes to standardize how companies report their environmental and social impact, said it has received a flood of new interest since investment giant BlackRock Inc touted it an open letter to CEOs this year. SASB CEO Janine Guillot said the group is now working to translate the new traffic into more data reporting. "It is surprising how much a little letter from Larry Fink can generate," said Guillot, referring to BlackRock's CEO.
JBG Smith Properties sold a 50% stake in its 552,000-square-foot Central Place office tower in December for $220 million, the Bethesda-based firm disclosed in its 2019 annual report released Tuesday. The sale to PGIM Inc. of the Rosslyn asset netted JBG Smith (NYSE: JBGS) $53.4 million and comes as the company seeks to both shed properties outside of its core business and fuel a development pipeline. In all, JBG Smith sold or recapitalized around $426 million last year, above previously stated expectations of around $400 million, according to the regulatory filing.
Toby Millman is no stranger to the commercial real estate industry, having worked for the likes of EYA, Abdo Development and Vornado Realty Trust (NYSE: VNO) among others, but it's his latest roll that has him tackling development on a whole new level. Brookfield Properties (NASDAQ: BPR) recruited Millman from Ditto Residential in March to help the company digest its $11.4 billion acquisition of Forest City Realty Trust Inc., and while he's still in the development game, it's not just buildings he's working on these days — it's neighborhoods.
Last week, you might have seen that Vornado Realty Trust (NYSE:VNO) released its annual result to the market. The...
Vornado Realty Trust’s (NYSE: VNO ) fourth-quarter conference call suggested an 8% decline in 2020 adjusted funds from operations. The bankruptcy filing by Forever XXI in the US poses additional downside ...
Vornado's (VNO) Q4 performance reflects decent same-store NOI performance of the New York portfolio as well as theMART and 555 California.
NEW YORK, Feb. 18, 2020 -- VORNADO REALTY TRUST (NYSE: VNO) reported today: Quarter Ended December 31, 2019 Financial Results NET INCOME attributable to common shareholders.
Low Treasury yields make it difficult to find attractive yield investments. We don't complain; instead, we roll up our sleeves and look for equities that offer good yields, asserts Todd Shaver, editor of BullMarket Report.
While Regency Centers' (REG) Q4 results will likely reflect gains from focus on premium grocery-anchored shopping centers, a dismal retail real estate environment might have curbed its growth tempo.
While UDR's Q4 performance will likely reflect efforts to boost operating margins on innovative technological solutions and process enhancement, high supply of new units might have been a spoilsport.
Federal Realty's (FRT) Q4 results to likely reflect adverse impact of secular industry headwinds, including store closures and bankruptcies, despite focus on enhancing portfolio and tenant mix.
Omega Healthcare (OHI) Q4 results to likely reflect top-line growth backed by its diversification efforts, strategic investments amid favorable demand and supply conditions in the company's markets.
Though Simon Property's (SPG) Q4 results will likely reflect benefits of active portfolio restructuring and the company's omni-channel strategy, the choppy retail environment concerns us.
(Bloomberg) -- Sandeep Mathrani knows what it’s like to lead a company out of trouble.His former employer, General Growth Properties, had been flattened by the economic recession of 2008. GGP, the second-biggest owner of shopping malls in America, named Mathrani as chief executive officer in 2011 as it was emerging from what was then the biggest real estate bankruptcy in U.S. history.Six years later, Mathrani sold the business to Brookfield Property Partners LP in a deal valued at about $15 billion. The project won him a reputation as a corporate turnaround artist. “I’ve had plenty of opportunities and plenty of luck,” he said last year during an acceptance speech for a real estate industry award.That luck will surely be tested in his new job at WeWork. The troubled co-working company appointed Mathrani, 57, as CEO on Saturday. He’ll report to Marcelo Claure, the executive chairman at WeWork and operating chief at SoftBank Group Corp., WeWork’s majority owner. In a statement, Claure praised Mathrani’s “turnaround expertise.”Mathrani is a fixture in the clubby world of commercial real estate, but he also has some experience working with startups. At Brookfield, he led an investment in Industrious, a WeWork rival. “While real estate is full of some very dry, very conservative characters, Sandeep is very much not that,” said Jamie Hodari, co-founder and CEO of Industrious. “If WeWork wanted to bring in someone with serious real estate chops but who was a little closer to the WeWork spirit, he seems to fit that bill.”However, WeWork poses a very different challenge from the shopping center business. Adam Neumann, its larger-than-life co-founder, started WeWork in 2010 to rent trendy office spaces to companies and freelancers. He pitched it as a hybrid real estate and technology business, a “physical social network.”Investors bought into Neumann’s vision, giving him billions of dollars and mostly unchecked authority to set up offices around the world. SoftBank, a Japanese technology conglomerate, was the biggest believer and drove the valuation of the business up to $47 billion.But when they tried to take the parent company We Co. public last year, the plan quickly crumbled under scrutiny from Wall Street. WeWork was spending far more than it was generating in revenue and had a litany of apparent conflicts of interest with Neumann, who received loans from WeWork as it paid him rent on buildings he owned. WeWork pulled the IPO in September and agreed to sever ties with Neumann, netting him an exit package worth more than $1 billion. SoftBank said it would rescue the company by arranging about $9.5 billion in financing.The appointment of Mathrani has parallels to the situation at another unicorn startup once beset by crisis. Uber Technologies Inc., which also counts SoftBank as its largest shareholder, replaced its controversial co-founder with Dara Khosrowshahi in 2017. Khosrowshahi, an Iranian immigrant who rose to the top job at online travel provider Expedia Group Inc., was asked to tame Uber’s raucous workplace culture and its boom-or-bust financial model. Both CEOs were respected in their fields but largely unknown outside. And both had solid reputations as business operators capable of increasing profit at a steady pace and earning accolades from public investors.Mathrani was born into a wealthy family in India. In the early 1980s, his father sent him to the prestigious British boarding school Eton, but he soon left to attend public high school in suburban Philadelphia as an exchange student, Mathrani recounted during the 2019 awards ceremony speech. By age 20, he had earned engineering and business degrees from Stevens Institute of Technology, whose campus in Hoboken, New Jersey, overlooks the New York City skyline.His first foray into real estate came when he made $20,000 from flipping an apartment he’d bought for $55,000 two years earlier. For a young engineer, that was a lot of money, Mathrani said in the speech. “Wow, I made 20 grand, hallelujah,” he recalled thinking at the time. “Real estate is a good business!”Mathrani said he applied for whatever real estate jobs he could find. He was hired as a mall designer and began rising through the ranks. In 1994, he went to Forest City Ratner Cos., the development company owned at the time by real estate titan and former Brooklyn Nets owner Bruce Ratner, who would become one of Mathrani’s mentors, according to Women’s Wear Daily. In 2002, Mathrani joined Vornado Realty Trust, the largest owner of real estate in New York City, where he ran the company’s retail division.Eight years later, the call came to lead GGP. There, Mathrani had to overcome the aftershocks of the recession, a retail industry in decline and the sharp rise of Amazon.com Inc. Mathrani focused on high-end properties and courted internet-native brands like Warby Parker and Tesla Inc. to his malls. He was rewarded by becoming one of the highest-paid executives in real estate.In broadcast interviews and speeches, Mathrani is soft-spoken and understated. For the speech last year, he wore a plain suit, patterned tie and rimless glasses, his hair slightly out of place, looking the part of a college professor. He spoke about his fortune in life and finding success in America.In a statement, Mathrani said WeWork “has redefined how people and companies approach work with an innovative platform.” Under Mathrani, WeWork will refocus on office rentals and walk away from passion projects started by Neumann. It has sold business units and other holdings, including a large stake in female-focused co-working startup the Wing. WeWork also said it would terminate about 2,400 jobs.Staff morale at WeWork is low, and it’ll likely take years to get the company’s finances in order. A recent business plan set a target for positive cash flow by 2023. It could take even longer to change the company’s image in the minds of public investors.Mathrani’s role at WeWork is designed to complement Claure, a longtime telecommunications executive who was abruptly thrust into the WeWork debacle a few months ago when he was named chairman. Claure recently tweeted a photo of an inspirational message that he said reminded him of his first few days learning the real estate industry. The message read: “Be brave enough to suck at something new.”To contact the reporters on this story: Gerrit De Vynck in New York at firstname.lastname@example.org;Ellen Huet in San Francisco at email@example.comTo contact the editors responsible for this story: Mark Milian at firstname.lastname@example.org, ;Alistair Barr at email@example.com, Vlad SavovFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
NEW YORK, Jan. 29, 2020 -- Vornado Realty Trust (NYSE: VNO) today announced that its financial results for the three months ended December 31, 2019 will include the items.