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Strategies & Market Trends : Commercial Real Estate tic.............tic,,, -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (81)	12/2/2008 2:50:35 PM
From: DebtBomb	Respond to of 442

Greed got the best of him....maybe he works for wall street now?

To: Smiling Bob who wrote (81)	12/2/2008 4:08:52 PM
From: Perspective	Read Replies (1) \| Respond to of 442

I noticed most of the REITs carry their properties "at cost." That used to be a positive, since they had likely appreciated. It should now be a hidden drag on the balance sheet. Have you seen any easy way of quickly tracking down which REITs have the greatest exposure to properties purchased in the 2005-7 time frame? Any reports of purchase activity over the past few years, for instance? `BC

To: Smiling Bob who wrote (81)	12/2/2008 4:19:36 PM
From: Perspective	Read Replies (1) \| Respond to of 442

Looks like SPG is levered about 5:1 based on debt of 17,879,266 and equity of 3,313,091. Taking their net income of 112,809 and adding back in depreciation of 235,915, it looks like their net cash margin is around 348724/935594 = 37%. A 10% drop in revenues (94,000) would virtually wipe out reported income, and reduce cash flow by 27%. Couldn't find much about their debt maturities in here: yahoo.brand.edgar-online.com Has anybody done similar analyses for other REITs? I want to know 1. which ones are most highly levered 2. which ones have the narrowest net margins I also don't understand how significant net income is vs. FFO for these guys. Seems like it wouldn't take much of a hit to revenues (occupancy) in order to really nail income, but cash flow would still look pretty good. `BC