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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (170536)	12/11/2008 12:47:32 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

seems almost a certainty that GGP will go BK on friday, midnight...any thoughts on how this affects SRS? biz.yahoo.com Fitch has dim view on commercial property sector Wednesday December 10, 11:30 am ET Fitch Ratings lowers view for commercial property owners as US economy worsens NEW YORK (AP) -- Fitch Ratings lowered its industrywide outlook for commercial real estate owners Wednesday, citing a worsening economic outlook and tight credit markets. The rating agency downgraded its outlook for the real estate investment trust sector to negative from stable. The report applies to equity REITs, which invest in shopping malls, office buildings and other properties. ADVERTISEMENT These companies "are situated at the nexus of a recessionary economy, weakening property fundamentals, near-frozen debt capital markets, and stock prices that are, on average, approximately 60 percent below their peak level," wrote Fitch analyst Steven Marks. The report came after Fitch on Tuesday downgraded General Growth Properties Inc.'s credit ratings, saying default may be imminent for the Chicago-based shopping mall owner. Earlier this month, General Growth reached an interim agreement to extend the time it has to pay back $58 million in notes to Thursday, just days after the Chicago-based real estate investment trust got a two-week reprieve to pay off $900 million in mortgages The recession likely will only make matters worse, especially for office properties that are likely to be by job cuts and retailers that feel the brunt of falling consumer spending, Fitch said. Apartment and health care property investors have a better outlook, according to the report. Apartment operators still have financing from government-controlled mortgage finance companies Fannie Mae and Freddie Mac and health care companies are still positioned to benefit as the baby boomer population ages.