As WE THE PEOPLE THE 99% IN US fight to rebuild our strong public health system for which we PRE-PAID to receive quality health care----please think of what health structures global neo-liberal 1% are building overseas----foreign citizens should be fighting for our REAL QUALITY US PUBLIC HEALTH STRUCTURES. As here in US you will not get that allowing these global 1% extreme wealth neo-liberals and neo-cons control our people's government.
Sadly, those nations above having had REAL UNIVERSAL HEALTH CARE ------are now being taken down to subprime US predatory and profiteering medicine.
It is our global corporate hedge fund IVY LEAGUE medical universities like Johns Hopkins who brought down our strong public health and fleeced it with profiteering and fraud----and today these same institutions are gradually becoming the only choice for our health care access. THIS WILL NOT END WELL FOR 99% OF WE THE PEOPLE black, white, and brown citizens
Jun 16, 2014 @ 10:55 PM 418,904 12 Stocks to Buy Now
U.S. Healthcare Ranked Dead Last Compared To 10 Other Countries
Dan Munro , Contributor
I write about the intersection of healthcare innovation and policy. Opinions expressed by Forbes Contributors are their own.
Turns out that many of those "other countries" (including France) score better than the U.S. in one key metric not included in Cadillac's TV spot — healthcare. At least that's according to The Commonwealth Fund in their latest report "Mirror, Mirror On The Wall — 2014 Update" (pdf here).
For this year's survey on overall health care, The Commonwealth Fund ranked the U.S. dead last .
1. United Kingdom
5. Germany & Netherlands (tied)
7. New Zealand & Norway (tied)
11. United States
It's fairly well accepted that the U.S. is the most expensive healthcare system in the world, but many continue to falsely assume that we pay more for healthcare because we get better health (or better health outcomes). The evidence, however, clearly doesn't support that view.
The report itself is fairly short (32 pages), but included prior surveys and national health system scorecards as well as data from the World Health Organization (WHO) and the Organization for Economic Cooperation and Development (OECD). The report also included a list of major findings -- including these:
Quality: The indicators of quality were grouped into four categories: effective care, safe care, coordinated care, and patient-centered care. Compared with the other 10 countries, the U.S. fares best on provision and receipt of preventive and patient-centered care.
Access: Not surprisingly — given the absence of universal coverage — people in the U.S. go without needed health care because of cost more often than people do in the other countries.
Efficiency: On indicators of efficiency, the U.S. ranks last among the 11 countries, with the U.K. and Sweden ranking first and second, respectively. The U.S. has poor performance on measures of national health expenditures and administrative costs as well as on measures of administrative hassles, avoidable emergency room use, and duplicative medical testing.
Equity: The U.S. ranks a clear last on measures of equity. Americans with below-average incomes were much more likely than their counterparts in other countries to report not visiting a physician when sick; not getting a recommended test, treatment, or follow-up care; or not filling a prescription or skipping doses when needed because of costs. On each of these indicators, one-third or more lower-income adults in the U.S. said they went without needed care because of costs in the past year.
Healthy lives: The U.S. ranks last overall with poor scores on all three indicators of healthy lives — mortality amenable to medical care, infant mortality, and healthy life expectancy at age 60. Overall, France, Sweden, and Switzerland rank highest on healthy lives.
Perhaps the biggest single takeaway was this one:
The most notable way the U.S. differs from other industrialized countries is the absence of universal health insurance coverage. Other nations ensure the accessibility of care through universal health systems and through better ties between patients and the physician practices that serve as their medical homes. The Commonwealth Fund "Mirror, Mirror On The Wall — 2014 Update"
Unfortunately, many still equate "universal healthcare" with "Government run" or "single payer" healthcare. It isn't (Universal Coverage Is Not "Single Payer" Healthcare — here).
All of which makes Cadillac's advertising chutzpah even more brazen. After all, it was just seven short months ago that the Government "bailout" of GM officially ended. One of the more commonly cited reasons for the dire financial predicament of the auto industry giant was always — yup — ballooning healthcare costs. Just as Starbucks SBUX +0.17%
spends more on healthcare benefits than coffee beans — GM (at least in 2005) spent more on healthcare benefits than steel.
The U.S. excels in many areas, but clearly population health (and all its related components) isn't one of them. N'est-ce pas?
We will start this real estate public policy discussion with an article from last post regarding expanding nursing home businesses seeking to pocket those hundreds of billions of revenue from our FEDERAL MEDICARE AND AFFORDABLE CARE ACT from aging BABY BOOMERS and next generation. All this expansion is predatory-----it has no oversight and accountability ----AND we see how real estate deals will take control of that 'local' nursing home into the hands of global investment firms tied to REIT. REIT is not new----it has been the scourge of selective taxation -----started mid-1900s by of course MARYLAND AND BALTIMORE. REIT is that tax tool having taken all tax revenue that should have been coming to our government coffers for broad community economic development ----there is not a major corporate real estate property in Baltimore and Maryland not tied to REIT. This is why we are told over and over Baltimore has no revenue to reverse what are third world conditions in our surrounding communities.
So now these REIT tax policies are being tied to privatized corporate PRE-K to career 'public' schools and all our public health facilities. When a problem occurs surrounding neglect of property and person, injury, rezoning a community---it is not the citizens in the community holding that real estate health facility accountable---our global Wall Street pols and 5% players are dealing with the REIT investment corporations holding the leases on these buildings in our communities.
These same real estate conditions occur when our development is tied to BOND AND LEVERAGE DEALS -----the real estate is in our communities providing valuable services but the citizens in these communities have NO CONTROL OF HOW THESE PROPERTIES function. As soon as global Wall Street and these REIT investment firms want to repurpose that real estate they simply do it having no concerns over what the citizens in those communities want AND our 5% to the 1% global Wall Street pols and players are listening to THEM ----NOT WE.
OH, THEY WOULDN'T LIKE THAT SAY BALTIMORE'S GLOBAL WALL STREET CLINTON/BUSH/OBAMA POLS AND PLAYERS.
Why are we allowing people who obviously want to skirt all SOCIETAL responsibilities from paying taxes to being accountable to consumers---be the one's controlling all our Federal, state, and local funding for health care?
This is how global 1% and their corporations are being handed all control of all our US real estate----now these PA nursing homes are in counties ---where in Baltimore that real estate is city. We have no jurisdiction over global corporations in US CITIES DEEMED FOREIGN ECONOMIC ZONES.
Mid-Atlantic Skilled Nursing Group Completes Sale-Leaseback with Sabra Health Care REIT
Signal Hill Capital Group LLC served as the exclusive financial advisor to the Sellers in a sale-leaseback of four skilled nursing facilities in the Mid-Atlantic region (the SNF Portfolio) to Sabra Health Care REIT, Inc. (Sabra) for $97.5 million in cash. The SNF Portfolio will be operated under a long-term lease with an initial yield on cash rent of 8.75%. The transaction closed August 1, 2011.
Based in Irvine, California, Sabra (NASDAQ: SBRA) is a self-administered, self-managed real estate investment trust (a REIT) that, through its subsidiaries, owns and invests in real estate serving the healthcare industry. Sabra leases properties to tenants and operators throughout the United States. As of June 30, 2011, Sabra's investment portfolio included 88 properties with a total of 9,793 licensed beds, spread across 20 states, and one mortgage note. The portfolio includes various types of assets such as skilled nursing facilities; combined skilled nursing, assisted living and independent living facilities; mental health facilities; an independent living facility; an acute care hospital and a continuing care retirement community.
This transaction was a collaborative effort between Signal Hill?s Real Estate Investment Banking team and Healthcare Investment Banking team. Combining the expertise of both practice areas enabled Signal Hill to provide the Sellers with superior execution and a successful outcome.
Here we see the THEY that local pols and 5% players are working----and we see MARYLAND as home base while headquartered in IRVIN CA----that is the same SILICON VALLEY -----
The 5% SHOW ME THE MONEY players are of course insider trading with these REIT CORPORATIONS thinking they are WINNERS----indeed these few decades they are getting those stock options as they hand complete control of ALL US real estate to those OLD WORLD MERCHANTS OF VENICE 1% ----of which our 5% think they are a BROTHERHOOD.
self-administered self managing MEANS it regulated and oversees itself----and 99% of WE THE PEOPLE just assume that will end well for public interest.
So, REIT has gone K-12 public schools being taken corporate AND it has been going public health these few decades now soaring in senior and poverty health care real estate.
Sabra Health Care REIT, Inc. (NASDAQ:SBRA), a Maryland corporation, operates as a self-administered, self-managed real estate investment trust (a "REIT") that, through its subsidiaries, owns and invests in real estate serving the healthcare industry. Sabra leases properties to tenants and operators throughout the United States and Canada'.
Who are about to lose their public pensions? OUR PUBLIC SCHOOL TEACHERS? Who is tied to promoting REIT because they are co-shareholders? OUR TEACHERS' UNIONS. This is how our labor unions are KILLING 99% of WE THE PEOPLE....with health care access that is LITERAL.
'Glass Lewis is owned by the Ontario Teachers' Pension Plan, and the Alberta Investment Management Corp'.
This tie of our teachers' pensions and other union pensions to REIT among other shareholder stock options is why they are bound to CLINTON RACE TO THE TOP EDUCATION REFORM tied to privatizing our public K-12.....the next generation will be totally captured by real estate owned by global 1% corporations having no property rights or ability to own land.
Glass Lewis Recommends Sabra Shareholders Vote “FOR” Proposed Transaction with Care Capital Properties
By GlobeNewswire, August 03, 2017, 06:00:00 PM EDT
Vote up A A A
IRVINE, Calif., Aug. 03, 2017 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. (Nasdaq:SBRA) (Nasdaq:SBRAP)
("Sabra" or the "Company") today announced that leading independent proxy voting advisory firm, Glass, Lewis & Co., LLC ("Glass Lewis"), has recommended that Sabra shareholders vote "FOR" the Sabra common stock issuance proposal in connection with the pending merger with Care Capital Properties, Inc. (NYSE:CCP) ("CCP") at the Company's upcoming Special Meeting of Stockholders on August 15, 2017.
In its August 3, 2017 report, Glass Lewis recognized the short term nature of Hudson Bay Capital ("Hudson Bay") and Eminence Capital's ("Eminence") positions, questioned their alignment with long-term Sabra shareholders and concluded:1
"In our view, though Hudson Bay and Eminence claim to have the interests of other Sabra shareholders in mind, given the short-term nature of their positions and likely investment horizons, accompanied by a lack of any alternative strategy for long-term value creation, we believe other shareholders of Sabra -- particularly those who actually owned Sabra stock before the CCP acquisition announcement -- should strongly consider the motivations of these new investors and whether their interests are aligned with the long-term interests of the Company and its other shareholders."
"…we also believe these opposing shareholders have misrepresented Sabra's strategic objectives and certain of its communications surrounding the CCP acquisition."
Glass Lewis also recognized that Sabra's Board of Directors and management team are well equipped to evaluate the transaction, manage CCP's portfolio and best serve the interests of Sabra shareholders:
"In general, we believe that management and the board are in the best position -- with more information and experts at their disposal -- to make decisions regarding a company's business strategy, operations and allocation of capital."
"…we believe that Sabra management has presented a compelling case that the merger remains reasonable and offers several strategic and financial benefits for the Company and its shareholders."
"Moreover, we believe the combined board and management team will be able to draw upon their vast experience as investors, owners and operators of healthcare facilities in navigating the near-term industry and integration issues while preserving the accretive nature of the transaction and the opportunity to significantly enhance shareholder value."
Glass Lewis also recognizes the appropriate valuation for the CCP transaction:
"Based on our analyses, the modest market premium, fair exchange ratio and low valuation multiples for an out-of-favor asset portfolio are all indicative of a reasonable deal from a valuation perspective."
"…we believe the premium is likely much lower than the opposing shareholders contend and that a modest premium would still be acceptable from a buyer's perspective given the expected scale, capital and synergistic benefits expected to be realized."
Commenting on the Glass Lewis recommendation, the Company issued the following statement:
We are pleased that Glass Lewis recognizes the compelling value created by our merger with CCP and has recommended that shareholders vote to approve the Sabra common stock issuance proposal.
The Sabra Board of Directors unanimously recommends that Sabra shareholders vote "FOR" the Sabra common stock issuance proposal at the upcoming Special Meeting of Stockholders. Sabra recommends shareholders submit their votes by Internet or by telephone following the instructions shown on their proxy or voting instruction cards. Shareholders may also vote by marking, signing and dating their proxy or voting instruction card and returning the card by mail.
Sabra shareholders who have questions or need assistance voting their shares may contact the Company's proxy solicitation agent, Innisfree M&A Incorporated toll-free at 1-888-750-5834.
Sabra Health Care REIT, Inc. (NASDAQ:SBRA), a Maryland corporation, operates as a self-administered, self-managed real estate investment trust (a "REIT") that, through its subsidiaries, owns and invests in real estate serving the healthcare industry. Sabra leases properties to tenants and operators throughout the United States and Canada.
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed merger of CCP with a wholly owned subsidiary of Sabra. In connection with the proposed merger, Sabra has filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission ("SEC"), which includes a joint proxy statement/prospectus with respect to the proposed merger. The registration statement has been declared effective by the SEC and Sabra and CCP have each mailed the definitive joint proxy statement/prospectus to their respective stockholders. The definitive joint proxy statement/prospectus contains important information about the proposed merger and related matters.
STOCKHOLDERS OF SABRA AND CCP ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT SABRA, CCP AND THE MERGER.
Stockholders can obtain copies of the joint proxy statement/prospectus and other relevant materials (when they become available) and any other documents filed with the SEC by Sabra and CCP for no charge at the SEC's website at www.sec.gov. Copies of the documents filed by Sabra with the SEC are available free of charge on Sabra's website at www.sabrahealth.com, or by directing a written request to Sabra Health Care REIT, Inc., 18500 Von Karman Avenue, Suite 550, Irvine, CA 92612, Attention: Investor Relations. Copies of the documents filed by CCP with the SEC are available free of charge on CCP's website at www.carecapitalproperties.com, or by directing a written request to Care Capital Properties, Inc., 191 North Wacker Drive, Suite 1200, Chicago, Illinois 60606, Attention: Investor Relations.
PARTICIPANTS IN THE SOLICITATION
Sabra and CCP, and their respective directors and executive officers and certain other employees, may be deemed to be participants in the solicitation of proxies in respect of the transactions contemplated by the merger agreement. Information regarding persons who may be deemed participants in the proxy solicitation, including their respective interests by security holdings or otherwise, is set forth, or incorporated by reference, in the joint proxy statement/prospectus relating to the proposed merger that has been filed with the SEC and mailed to Sabra and CCP stockholders. This document can be obtained free of charge from the sources indicated above.
Certain statements contained herein, including statements about Sabra's proposed merger with CCP, the expected impact of the proposed merger on Sabra's financial results, Sabra's ability to achieve the synergies and other benefits of the proposed merger with CCP and Sabra's and CCP's strategic and operational plans, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or future financial performance. We generally identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "continue" or "looks forward to" or the negative of these terms or other similar words, although not all forward-looking statements contain these words. Forward-looking statements are based upon our current expectations and assumptions of future events and are subject to risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements. Some of the risks and uncertainties that could cause actual results to differ materially include, but are not limited to: the possibility that the parties may be unable to obtain required stockholder approvals or regulatory approvals or that other conditions to closing the transaction may not be satisfied, such that the transaction will not close or that the closing may be delayed; the potential adverse effect on tenant and vendor relationships, operating results and business generally resulting from the proposed transaction; the proposed transaction will require significant time, attention and resources, potentially diverting attention from the conduct of Sabra's business; the amount of debt that will need to be refinanced or amended in connection with the proposed merger and the ability to do so on acceptable terms; changes in healthcare regulation and political or economic conditions; the anticipated benefits of the proposed transaction may not be realized; the anticipated and unanticipated costs, fees, expenses and liabilities related to the transaction; the outcome of any legal proceedings related to the transaction; and the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement. Additional information concerning risks and uncertainties that could affect Sabra's business can be found in Sabra's filings with the Securities and Exchange Commission, including Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2016. Additional information concerning risks and uncertainties that could affect CCP's business can be found in CCP's filings with the Securities and Exchange Commission, including Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2016.
We undertake no obligation to revise or update any forward-looking statements, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
Here is our international labor union in 2005 tying what is our HEALTH CARE LABOR WORKERS to REIT being shareholders in a CASINO STOCK MARKET. When we ask why have our labor pensions been left with no government contributions---this is it. This is how what should have been institutions working FOR THE 99% became tools of the global 1%. This affects not only those health care worker pensions tied to SEIU----it effects the lose of real estate---predatory real estate policies in our US cities now tied to expanding privatized senior and poverty business corporations.
What our labor unions should have done these few decades is fight for 100% funding of pensions in the safest of IRA/Bond investments then knowing the bond market was the next to be targeted for massive frauds moved those pensions from all investments and begin to send those pension assets NOW TO pension-holders.
REIT is tied to all major private hospitals and health clinics now expanding to senior care facilities. Who owns the real estate in US cities? The global investment firms holding the REIT deals. It is global Johns Hopkins and Maryland which pushed these corporate tax shelter policies.
'SEIU is a longtime advocate of responsible corporate governance practices and an active member of the Council of Institutional Investors, an organization of more than 130 pension funds whose assets exceed $3 trillion (USD)'.
Any citizen or organization trying to PRETEND they are promoting FAIR DEVELOPMENT while heavily invested in these REIT REAL ESTATE deals are LYING, CHEATING, AND STEALING both the community citizens' ability to affect how land in their communities is developed AND the loses to labor member pensions we have known are MOVING FORWARD for these few decades.
We have AFL-CIO Trumka, AFT Weingarten, SEIU Stern now Henry----all embracing these STOCK MARKET options making them team GLOBAL WALL STREET and not team WE THE PEOPLE THE 99%.
We CANNOT HAVE FAIR DEVELOPMENT with real estate policies like REIT====it was bad from the beginning and it is now transferring all US real estate to the global 1% and global corporations ---our labor union members will be those black, white, and brown 99% feeling these bad land deals as much as all others.
New Report: Risks for Potential Investors in U.S. REIT Maguire Properties Inc.;
Report by America's Largest Union, SEIU, Comes as Debt-Burdened Maguire Properties Inc. Seeks Investment Capital
July 13, 2005 09:00 AM Eastern Daylight Time
LOS ANGELES--(BUSINESS WIRE)--July 13, 2005
--With its plan to market interests in a reported $1.5 billion (USD) in real estate to Australian investors, U.S. real estate giant Maguire Properties Inc., (NYSE:MPG) could be putting potential investors at risk, according to a new report by America's largest union, SEIU. MPG, the largest commercial landlord in downtown Los Angeles, has a debt ratio among the highest of any publicly traded office real-estate investment trust (REIT) in the U.S. and the company's recent behavior has led to criticism from analysts, business partners, unions, and elected leaders in the U.S., as presented in a report, by the Capital Stewardship Program of the 1.8 million-member Service Employees International Union. SEIU members participate in pension funds with more than $1 trillion (USD) in assets.
"MPG faces a combination of concerns that potential investors should consider," said Dennak Murphy, Real Estate Director of SEIU's Capital Stewardship Program. "In our view those considering investing with Maguire Properties Inc. should evaluate for themselves the multiple issues that are raising the concerns of analysts, investors, and even elected leaders in the U.S." SEIU maintains a website and newsletter for MPG investors and analysts, MPG Monitor. The website is www.MPGMonitor.com.
“with the assets on a 6 per cent (or slightly lower) yield, even GPT would only break even post a 50:50 funding equity raising of circa $750 million at a 7.5 per cent yield and $750 million of debt at 4.5 per cent.”
This report lays out several factors that we believe could represent significant risks to current MPG investors and potential JV partners:
1) MPG's unusually high debt burden in the midst of a weak U.S. REIT market; 2) Co-CEO Robert Maguire's history of dealings with partners; 3) Corporate governance and potential conflict of interest issues; and 4) Political backlash over labor relations issues in the key L.A. market.
Despite initial optimism, Maguire Properties is finding its recent pitch to potential Australian investment partners a "tough sell," according to the Australian Financial Review, Australia's leading business publication. According to the paper, the Maguire Properties team recently returned to Los Angeles after marketing their $1.5 billion office portfolio to Australian listed property trusts. The Financial Review quoted a Merrill Lynch broker, who said that only GPT Group could afford to buy the deal, but added that "with the assets on a 6 per cent (or slightly lower) yield, even GPT would only break even post a 50:50 funding equity raising of circa $750 million at a 7.5 per cent yield and $750 million of debt at 4.5 per cent." Merrill Lynch speculated that Maguire would attempt to market the portfolio in the U.S.
The report was commissioned by the Capital Stewardship Program of the Service Employees International Union (SEIU). SEIU represents 1.8 million health care, property services, and public sector workers who participate in pension funds with more than $1 trillion (USD) in assets. These funds invest more than $62 billion (USD) in real estate. SEIU is a longtime advocate of responsible corporate governance practices and an active member of the Council of Institutional Investors, an organization of more than 130 pension funds whose assets exceed $3 trillion (USD).
Maguire Properties Inc. (MPG) is the largest owner and operator of Class A office properties in the Los Angeles Central Business District, and has several other significant holdings in the Los Angeles region. MPG is a full service real estate company that operates as a Maryland REIT. Chairman and co-CEO Robert Maguire owns 18.8% of MPG, and he owned and developed many of MPG's properties prior to MPG's public offering in 2003.
ContactsCapital Stewardship Program of SEIU
This is what we are shouting these few decades against US CITIES AS FOREIGN ECONOMIC ZONES DEVELOPMENT and how all that development is right on water's edge or near ports/ocean marine terminals.
If we KNOW climate change will see high sea levels and stronger storms-----then the REAL LEFT SOCIAL PROGRESSIVE policy as usual is to allow those real estate closest to water's edge be NATURAL -----this is where we would plant trees able to withstand soil saturation and parks which are cheaply repaired. Baltimore Harbor should be that design------we have HILLS surrounding the city center----the development whether high rise business or residential should ALL BE approaching the tops of those hills or beyond. Having trees and parks from water-front upwards of those hills allows for saturation of water whether brackish sea water or fresh rain water ------no public or business property damage and public health is PROTECTED.
What we have are REIT-DRIVEN development right on our water-fronts----these are all global corporate campuses that will expand to global factories and we can bet those expansions will not be protected by hills and high-level real estate. This is where storm water finds its way to our 99% of citizens' communities and housing.
So, for the next several decades as climate change gradually intensifies these REIT REAL ESTATE properties will be controlled by global 1% and global investment firms -------when after several decades climate change becomes DAMAGING to these properties -----the land will find its way into portfolios of 99% STOCK MARKET INVESTORS IN REIT. That is what happened these several decades of REIT---and it will now happen again with of course 99% home-owners/renters being right in the way of severe weather and sea level rises.
'When completed, the development will include 599 apartment units (mapped for condominiums) in four phases of approximately 150 units per phase'.
Four Transformative REIT Redevelopment Projects
A look at four REITs’ transformative redevelopment projects.
11/2/2015 | By Keith LoriaPublished in the November/December 2015 issue of REIT magazine.
The Philadelphia Naval Shipyard served as a hub of activity for the U.S. Navy for more than a century. During World War II, the facility employed approximately 40,000 workers engaged in building and repairing battleships for the U.S. fleet.
Over time, however, the Navy’s need for the shipyard dwindled to the point that it effectively discontinued operations there in the late 1990s. The city of Philadelphia took ownership of the site in 2000 and set out to re-make it into a mixed-use economic epicenter for the surrounding area.
Liberty Property Trust (NYSE: LPT) has spent the last 11 years working with the city to make that vision a reality. Thousands of employees currently report to work daily in the offices housed in the development, now known simply as the Navy Yard.
Liberty is one of a number of REITs engaged in redevelopment projects to transform outmoded assets into viable business and residential space. Along with Liberty’s project at the Navy Yard, here are a few examples of their handiwork.
Essex’s Station Park Green, San Mateo, Calif. In March, residential REIT Essex Property Trust (NYSE: ESS) acquired 1700 S. Delaware St. in San Mateo, Calif. The property previously served as home to a shuttered Kmart store and was fully approved for a 599-unit, mixed-use project for $67 million.
“This is a very rare 12-acre infill site, which when completed will fit into the existing neighborhood seamlessly,” says John Eudy, Essex Property Trust’s co-chief investment officer and executive vice president of the development. The new building will include 35,000 square feet of retail and office mixed-use space.
When completed, the development will include 599 apartment units (mapped for condominiums) in four phases of approximately 150 units per phase. Units will range in size from a junior one bedroom to three bedrooms. Amenities will include a one-acre park at the center and several smaller parks throughout the property. A resident-only pool, fitness center and clubrooms will also be included.
In addition, the community will have 25,000 square feet of retail on the corner of Delaware and Concar Avenues. A key selling point for Station Park Green, which is situated between San Francisco and Silicon Valley, is its proximity to public transportation options, including the Caltrain rail line.
With demolition of the Kmart that was on the site now complete, building is expected to begin in the first quarter of 2016.
QTS’s Sun-Times Press Facility, Chicago, Ill.In July 2014, QTS Realty Trust (NYSE: QTS) acquired the former Sun-Times press facility in Chicago, with designs on providing premium data centers to the country’s third-largest city.
“We are transforming the legacy newspaper building from a legacy means of communication to a future means of mass communication,” says Brian E. Johnston, CTO of QTS. “The Sun-Times building was once a critical force in the local and regional economy, and with our redevelopment, the structure will again play a major role.”
Johnston describes the facility as “underutilized,” and he says the surrounding infrastructure will enable QTS to engage in the redevelopment at “below-market costs.”
Development plans for the site include approximately 215,000 square feet of raised floor capacity and 37 MW of power. Additionally, further expansion can take place on the property’s 30 acres.
“We are a big believer in recycling and reuse,” Johnston says. “Also, this is a great area of downtown Chicago. We hope to have a positive effect on the surrounding area by taking a vacant building and transforming it into an industry-leading mega data center.”
While QTS has seen significant data center development in the outskirts of Chicago, virtually nothing has come online in the city’s downtown area.
“We will help meet the healthy demand for data center services as well as bring jobs to the downtown corridor,” Johnston says. “Access to Chicago’s diverse talent pool played a role in our decision to add a location in the city. This new data center downtown comes where there has been little capacity or competition for years.”
The project is under active development and is expected to open in the third quarter of 2016.
The diversity of the businesses in Chicago makes it an appealing new market for QTS, according to Johnston.
“As a Tier 1 data center market, Chicago offers strong wholesale, retail colocation and cloud opportunities for customers from high-tech, financial services, health care, media, government and education industries,” he says. “QTS is proud to join such a vibrant marketplace.”
Liberty Property Trust’s Philadelphia Navy Yard
The city of Philadelphia focused on utilizing the industrial side of its historic Navy Yard when it took ownership of the property in 2000.
Liberty and its joint venture partners won the rights in 2002 to develop 70 acres at the front of the Navy Yard into a campus-style office park. However, that was just the beginning for Liberty and the city.
“We finalized our agreement with the city’s economic development agency in 2003, and part of that was to come up with a joint master plan for the entire 1,000 acres,” says Brian Cohen, vice president and city manager of Liberty’s Philadelphia office. “We commenced construction on our first project in 2004, and this was the start of what’s been 11 years of successful development.”
As of today, the Navy Yard has approximately 12,000 employees working on-site. The facility is estimated to have generated $77 million in local and state taxes in 2012, when its managers conducted their last economic study.
“We, with our joint venture partners, have developed 12 buildings, one of which was a built-to-suit for sale, totaling approximately 1.3 million square feet,” Cohen says. “In addition to that, there are several other buildings that are either owner-occupied or occupied by the Navy.”
This summer, Liberty broke ground on its 14th new office building at the site, designed by the same architect behind Two World Trade Center. Cohen says Liberty expects to start three more offices this year. In addition to the buildings, a large part of Liberty’s plan concerns using notable landscape architects to design unique parks and public spaces. Along those lines, Liberty recently completed a 4.5-acre park called The Central Green, which was built to target millennials.
“It’s an active park that becomes another place for people to work—whether it’s working in a hammock or bringing the meeting outside,” he says. “Those types of spaces have created a unique place.”
Its amenities include an amphitheater, table tennis and outdoor conference areas, surrounded by botanical landscaping, Cohen says.
“Our vision is to really build upon Liberty’s history and experience in doing both suburban campuses as well as urban development and to try and come up with an urban/suburban campus that could be an alternative to companies in the suburbs who were not interested in a downtown setting, but interested in what the city had to offer, including a growing labor force,” Cohen says. “Our high-quality design and architecture is what separates these buildings in the region.”
Looking ahead, there is no end date in site for the Navy Yard project, as things will be updated, redeveloped and improved over the years.
“In order for a campus development like this to be successful, the master plan needs to be flexible, and it never ends,” Cohen says. “It’s a dynamic plan that we continue to think about in terms of development over time.”
DCT Central AvenueLike QTS, DCT Industrial (NYSE: DCT) has a major redevelopment project in the Chicago area. The industrial REIT is building a new 172,000-square-foot, 235-door truck terminal
at 4800 South Central Ave. It’s a build-to-suit project for an undisclosed Fortune 100 company, which has signed a 15-year lease.
The site currently houses three older buildings, which are set to be demolished. Actual work is expected to start in late 2015 or early 2016.
Jess Knigge, DCT Industrial’s regional vice president for development, notes that the finished project will consist of 53.6 acres. It will feature a 13,500-square-foot office building, a 21,000-square-foot maintenance shop and a fueling station on-site.
“From our standpoint as the developer, the excitement is about creativity,” Knigge says. “We are able to go in here, put together several parcels on a leaseback basis and our team was able to find a great long-term tenant.”
The neighborhood is historically an industrial corridor, and many of its facilities are similar. None is as large or as modern as what DCT Industrial is planning to build, which Doyle says is a bellwether of things to come.
Doyle adds that its location makes it ideal for those coming in. The site sits approximately a quarter mile from an entrance to I-55, which Doyle says is the highest-traveled truck route in Chicago.
DCT’s new building is expected to be delivered by late 2016 or early 2017.
This is of course why our Caribbean Island real estate was developed now becoming uninhabitable----REAL left social progressives were shouting in the 1970s climate change would kill public health and public assets. These REIT investment corporations earned billions placing development there as they did in Houston, New Orleans, Miami ---now doing the same on East and West Coast.
Who takes the losses if buildings or real estate is damaged and becomes unusable, as earthquake, floods, fire? THE REIT SHAREHOLDERS IN THE LOWER TIER INVESTMENT....that's WE THE PEOPLE THE 99% black, white, and brown citizens.
REIT Redevelopment Projects Are Transforming Communities ...www.reit.com/news/reit-magazine/november-december-2015/reit-redevelopment-projects-are-transforming-communities Nov 6, 2015 ... Community redevelopment is the real estate equivalent of this metamorphosis. REITs have helped communities change and grow by ...
Keep in mind it was mainly since CLINTON/BUSH/OBAMA that real estate development became PROFIT OVER PEOPLE.....we had flood-plane laws ----we had forest fire land restrictions for development---until all those laws were ignored and the only thing that mattered was PROFITS TO DEVELOPERS. When developing on land known to be compromised----what do those global Wall Street 1% players do? They use REIT to control real estate ownership making sure in good times all the benefit goes to the global 1% ---and in bad times that land is owned by 99% of WE THE PEOPLE.
People asking WHY ARE THEY DEVELOPING HUGE US FOREIGN ECONOMIC ZONES along a CA coast known to be ready for super-duper earthquakes---all the while PRETENDING to protect buildings with engineering that WILL NOT PROTECT THOSE BUILDINGS? Those global 1% are BETTING those super-duper earthquakes will not happen these several decades and don't care if they do----all real estate is tied to REIT.
THIS IS WHAT HAS BEEN ATTACHED TO ALL OUR AFFORDABLE HOUSING THESE FEW DECADES WITH FEDERAL HUD UNDER CLINTON/BUSH/OBAMA MAKING SURE THESE HOUSING ARE ON THE MOST COMPROMISED REAL ESTATE.
Affordable Housing REIT’s Mission Is to Ensure Economic Vitality
Susan Piperato | Jun 30, 2015
Community Development Trust (CDT), the first and largest REIT for affordable housing in the United States, is turning 16 this summer. The New York City-based REIT’s mission is to provide long-term capital in the form of debt and equity investments to support the preservation of affordable multifamily housing nationwide. CDT believes affordable housing is essential to a community’s economic vitality and is key to providing the necessary foundation for families and individuals to succeed in their careers or at school, as well as to thrive in retirement.
NREI spoke with Joseph F. Reilly, CDT’s president and CEO, about how the REIT has performed since its founding, and what he expects for the affordable housing industry in the future. An edited transcript of that interview follows.
NREI: How has the affordable housing field changed since CDT's founding, both in terms of need and investment levels?
Joseph F. Reilly: Since CDT’s first investment nearly 16 years ago, we have seen the demand for affordable housing continue to grow. Our first deal in affordable housing impacted just 35 families, while our most recent investment has extended our total reach to more than 35,000 families.
Across the country, low-income Americans continue to struggle to afford their homes. This is especially true in large, high-cost areas where it can be very difficult to preserve affordable housing because the high demand puts added pressure on market rate housing. This creates problems not just for low-income families, but also for local economies. It is critical for local economies to have housing available at different price points. Everyone who works in an office building—whether they are a CEO, an accountant, an administrative assistant, or a janitor—should have access to housing that doesn’t force them travel from the fringes of a city just because their income is lower than market rate affordability. There is a lot of opportunity for investment in affordable housing and we will continue to work with our partners to identify the right projects, wherever they are.
NREI: Why affordable housing as an investment vehicle?
Joseph F. Reilly: CDT was formed as a real estate investment trust with a public purpose to provide long-term capital for the preservation and development of affordable housing. Our success and growth is intimately tied to the demand and need for affordable housing. Our focus on community development helps us to realize positive returns for our investors as well as the communities in which we invest. Since our first investment we have paid about $57 million in dividends to our investors while also providing the capital for affordable housing that’s impacted about 35,000 families across the country. We pride ourselves not just on our investment choices, but also on the consistency and quality of our work. We put value in creating relationships for the long-term and that is apparent in both our work and in our investor relations.
NREI: How many people would you say CDT is housing at present?
Joseph F. Reilly: CDT’s investments, which have surpassed the $1 billion mark, have financed the development and preservation of more than 35,000 units. We estimate that we are providing over 100,000 people, including families, seniors and individuals, with safe, affordable housing and we look forward to growing that number in the years to come.
NREI: Describe CDT as a company for us.
Joseph F. Reilly: The success of CDT rests squarely on the vision, talent, and dedication of our management and staff. CDT draws on a wealth of knowledge from its management team under the guidance of our board of directors, which is composed of many of the nation’s top experts in affordable housing, residential real estate, finance and community development. Without their dedication, CDT would not be the success it is today.
NREI: How are CDT’s investments split?
Joseph F. Reilly: As a national investor in affordable housing, CDT works with local, regional and national partners to make long-term equity investments and to originate and purchase long-term mortgages. Our investments are about evenly split between equity properties and mortgage loan investments.
On our equity side, we invest for the long term, providing the capital necessary to restructure a property’s ownership, address capital needs, replace major systems and add amenities such as recreational facilities and community centers. On our debt side, we are a national direct lender and secondary market purchaser of permanent mortgages in support of the development and preservation of affordable multifamily communities. As a secondary market for permanent loans, we also purchase mortgages made by CDFIs, community banks and other affordable housing lenders. This a critical component in our mission to expand the supply of capital to affordable communities throughout the country.
NREI: Last January, CDT made a $100 million commitment to the U.S. Department of Housing and Urban Development Rental Assistance Demonstration program, which allows private investment in public projects. How does this work, and how is it going so far this year?
Joseph F. Reilly: The Rental Assistance Demonstration (RAD) program, developed by the U.S. Department of Housing and Urban Development (HUD), was designed to supplement congressionally allocated funds that alone have been insufficient to keep up with the capital needs of public housing units across the country. Now, projects currently funded under the public housing and Section 8 Moderate Rehabilitation programs can convert their assistance to long-term, project-based Section 8 rental assistance contracts. This enables public housing agencies and private owners to obtain private debt and equity to address capital needs while also ensuring that existing tenants will remain in their homes. The RAD program has been tremendously valuable, and through our $100 million commitment, we are increasing public housing financing options while positively impacting the lives of residents.
CDT’s most recent and approved long-term forward commitment was for a permanent first mortgage of $4.4 million for the Ribicoff Cottages, a 55-unit multifamily housing development in New Haven, Conn. This was a two-phase project that required demolition of the existing structures, originally built in the 1950s, and the construction of the new 106-unit Ribicoff Apartments. Once the second phase is complete, the community will consist of one-, two-, three- and four-bedroom units of townhouses and small cottages. This mixed-income community will serve a full range of low- and middle-income families working in New Haven and surrounding neighborhoods.
Working with our partners, we look forward to our continued involvement in the RAD program and this new opportunity to transform communities across the country.
NREI: What are some of the largest recent transactions CDT has seen?
Joseph F. Reilly: In 2013, CDT acquired Ocean Towers, a 360-unit property in the Coney Island section of Brooklyn, in a joint venture with Proto Property Services. Originally constructed under the Mitchell-Lama Program in 1973 and located in an area hit particularly hard by Hurricane Sandy in 2012, the $52 million acquisition and rehabilitation project secured the preservation of 360 affordable housing units. CDT provided $10 million in equity for the project, one of CDT’s largest investments to date and its first in New York City. Improvements to the property included new high-efficiency boilers installed above Sandy flood levels, individual electric meters, full elevator replacement, new building entry, parking lot resurfacing and new entry gate, new unit entry doors and common area improvements. In addition to these significant renovations, current residents could remain in their homes with as little disruption as possible over the life of the work. CDT worked with a diverse group of funding sources to make this investment possible, including the Enterprise Community Loan Fund, New York City Acquisition Fund, Community Preservation Corp., New York City Department of Housing Preservation and Development, New York City Employee Retirement System, State of New York Mortgage Agency, Brooklyn Borough President’s Office and NYSERDA.
While we always aim for market rate returns for our investors, CDT also prioritizes the social impact of our investments. Each project is reviewed to ensure the safety, quality, and longevity of affordable housing for current and future residents. Our work at Ocean Towers meets both those criteria, and for that reason, it is a project of which we are especially proud.
NREI: What do you see for CDT’s future—and for the future of affordable housing, which some believe is heading to a crisis point?
Joseph F. Reilly: Over the last 16 years, CDT has seen growth in terms of the size of our portfolio and also in the complexity of our projects. We see a lot of opportunity for greater investment in affordable housing and we will continue to work with our partners across the country to identify the right projects.
As the demand for affordable housing continues to grow, especially in cities with strong local economies, it will become increasingly important for public policy to help shape opportunities for investment in affordable housing. At CDT, we look for the long-term investment opportunities. Our objective is to invest and stay invested. This means that we can provide long, steady returns to our investors and also fulfill our double bottom line mission of providing the communities in which we invest with sizeable social impact returns.
CDT-----Community Development Trusts started 16 years ago being tied to what used to be HUD----PUBLIC HOUSING---this handed control to global investment firms tied to REIT. That was end of Clinton era beginning of Bush era ----this is why those high-rise public housing real estate are just being handed to private global Wall Street investment firms.
We have talked at length against these housing policies that are simply GLOBAL CORPORATE HOUSING ------where workers live where they work. We KNOW right now the development plans being installed by Baltimore City Council----and Mayor written by global Johns Hopkins, Baltimore Development, Greater Baltimore Development are going to have the most ADVERSE CONSEQUENCES for 99% of WE THE PEOPLE in US CITIES FOREIGN ECONOMIC ZONES. Our 5 % to the 1% global Wall Street Baltimore Development players know this too. THEY DON'T CARE.
So, REIT has been tied to HUD tied to AFFORDABLE HOUSING tied to global corporate campus housing tied to the most compromised real estate MOVING FORWARD CLIMATE CHANGE. Yet all of this is being called SUSTAINABLE DEVELOPMENT----
Here we see today the actions of REIT, LOCAL US FED, and what are being called COMMUNITY DEVELOPMENT, SMALL BUSINESS DEVELOPMENT, HUD AFFORDABLE HOUSING------we have in Baltimore the development of BROWNFIELDS never having toxicity mitigated and this is how these several decades all the damage to homes, communities, and local government tied to these real estates fall on the 99% of citizens ----the 99% of taxpayers----while global 1% investment firms walk away.
Here in Baltimore we have an incubator small business real estate right in the most industrial communities of CANTON----these same small business incubators in UnderArmour west Baltimore all tied to what will become the most compromised real estate. Our 99% of citizens will relocate and buy housing there ---our affordable housing will be built there and these are the same conditions present in HOUSTON, NEW ORLEANS, MIAMI---when we shake our fists at a President like Trump ---all that development damage was done a few decades ago.
An Innovative Brownfields Initiative Catches Fire in Pennsylvania
By Sid Johnston
Incubators Nurture Small
Wilkes-Barre Banks Land
Training Counts on Bank
Eastern College Announces
Represent Unmet Credit
10 Regulators Offer Y2K
Checklist for Bank
11 Calendar of Events
12 CEDRIC Is Now Available
on the Web
A newsletter from the Philadelphia Federal Reserve Bank about consumer credit and community reinvestment
LISC Launches Community
Blighted and contaminated lands
are a significant problem both
in Pennsylvania and in the nation.
However, a new private-sector ap-
proach to financing these properties
holds great promise.
The Financing Initiative for En-
vironmental Restoration, or FIER
(pronounced “Fire”), is an innova-
tive vehicle for addressing the barri-
ers to financing the cleanup and re-
development of brownfields. By re-
storing these impaired lands to pro-
ductive use, FIER will achieve envi-
ronmental cleanup on a significant
scale, spur sustainable economic re-
vitalization in urban areas, help en-
courage smart growth, and reduce
Conventional financial institu-
tions have, for the most part, stayed
away from financing the cleanup
and redevelopment of brownfields.
The inherent risks (both real and
perceived) can be an institutional
lender’s worst nightmare. Rightly or
wrongly, brownfields are often
viewed as too risky on their own to
meet prudent investors’ safety and
FIER will marshal the collective
resources of member financial insti-
tutions and corporations. Its design
and creation will be a collaborative
effort, with input from public and
nonprofit entities. The new initia-
tive will be a financially sound vehi-
cle for private-sector participation in
the recycling of blighted lands.
FIER intends to leverage private-
sector financing with public-sector
sources in order to maximize its im-
A financing intermediary, such
as FIER, could be structured to serve
these types of projects by:
•providing a risk-sharing mech-
•creating a centralized source of
dedicated expertise to mitigate
transaction costs on complicated
and higher risk transactions;
•facilitating regulatory approv-
als in a centralized way;
•providing a shield from legal
liability for participants; and
•generating economies of scale
and portfolio diversification to fur-
ther mitigate risk.
The Phoenix Land Recycling
Company has formed a partnership
with the Development Fund to use
its expertise in creating large-scale
financing intermediaries. The Penn-
sylvania Department of Environ-
mental Protection (DEP) and The
William Penn Foundation are the
lead funders for the creation pro-
cess. Dede Myers, vice president
and Community Affairs officer, Fed-
eral Reserve Bank of Philadelphia,
has expressed both enthusiasm for
the initiative and a willingness to
play an ongoing role in assisting
these efforts. Banks and corpora-
tions in the state will be aked to join
The Phoenix Land Recycling
Local Initiatives Support Corpo-
ration (LISC) has launched the
Community Development Trust,
Inc. (CDT), the first real estate in-
vestment trust (REIT) to specialize
in acquiring community develop-
ment assets. CDT, a private REIT,
will acquire debt and equity in
projects that satisfy CDT’s goal of
preserving and increasing the stock
of affordable housing. A REIT oper-
ates much like a mutual fund for
real estate in that multiple investors
obtain the benefit of a diversified
portfolio. REITs typically invest in
mortgages or in equity; some, called
hybrid REITs, do both. CDT will op-
erate as a hybrid REIT.
LISC, the nation’s largest com-
munity development intermediary,
created CDT to further its broad
support for community develop-
ment initiatives and finance.
LIMAC, a LISC affiliate created in
1987, was the predecessor for CDT’s
current mortgage acquisition activi-
ties. CDT will build upon the na-
tional network of relationships that
LISC and its affiliates have built
during the past 20 years with
An Innovative Brownfields Initiative...
continued from page 1
Company is a nonprofit organiza-
tion created to encourage the reuse
of brownfield sites in Pennsylvania,
often by playing a direct role in re-
We have shouted against LAND TRUSTS being pushed by FAKE ALT LEFT groups just because of these ties with CD REITS =======the 99% of citizens in communities are sold this is a way to keep real estate locally controlled when that is the opposite of where LAND TRUSTS will go. LAND TRUSTS are tied to global banking investors through these REITS and this is how what is sold as locally controlled affordable housing property ends in the hands of the global corporate campus being built around it. All the REIT/global investors need do is create the Wall Street conditions for the REIT transfer of land from local citizens to those corporate campuses----THEY HAVE DONE THAT OVER AND OVER AND OVER AGAIN----this is what is driving the privatization of our high-rise US city public housing.
Community Development Real Estate Investment Trusts (CD REIT)
Community Development Real Estate Investment Trusts
FRBSF Community Investments (pdf, 71 kb)
Judd S. Levy, Community Development Trust
A real estate investment trust (REIT) combines the capital of many investors to acquire or provide financing for real estate. A REIT also permits real estate investors to obtain the benefits of a diversified portfolio. A CD REIT acquires debt and equity in projects that satisfy the definition of community development in the CRA regulation. Investments in CD REITs are carried as investments on the investing institution’s balance sheet in accordance with Generally Accepted Accounting Principles (GAAP).
So, 99% of citizen housing will be located on real estate with the most compromised flood plan flow of water ergo what we see on TV during storm, fire, earthquake disasters. Below we see all those 5% to the 1% Baltimore City pols and players pretending they are working for community development for 99% of citizens in these Baltimore communities. Decades from now when all these communities are UNDERWATER----shake your fists at these global Wall Street players.
This is why citizens are always pushed out of their communities or end up living in the most compromised real estate in US cities.
Community land trusts make their pitch
Natalie ShermanContact ReporterBaltimore Sun
Community land trusts make their pitch December 1, 2015
When longtime renter Ben Peterson first saw the listing for a small two-bedroom rowhouse in Frederick, the 36-year-old was struck by the price, which appeared within his grasp even though a career in nonprofits left him with only moderate income and savings.
That deal, it turned out, was precisely the point.
Peterson's home, which he purchased in August for about $154,000, is one of the first in Maryland to be sold by a community land trust — but several groups in Baltimore hope there will be more.
Activists in Baltimore are working to create at least three new community land trusts, nonprofits that develop or oversee affordable housing and other community assets such as playgrounds, parks and gardens. The organizations retain some stake in the homes they sell with ground leases and agreements that may split any price appreciation between the trust and the buyer or cap any resale price. The idea is to keep the homes affordable for the next buyer.
"This is a new model," said Rachel Kutler, an organizer at the United Workers Association, an advocacy group for low-wage workers that has convened a roundtable on housing issues since 2013.
In McElderry Park, Charm City Land Trust Inc. closed on its first house last month, a Luzerne Street foreclosure that Wells Fargo sold to the group for $1.
The trust, which got its start 16 years ago acquiring vacant lots in the neighborhood, is looking for funding and talking to contractors about renovating the house, with the hope of selling it next year, said Ayrika Fletcher, a real estate attorney and board member who helped start the group during her days as a community organizer.
The Northeast Baltimore Housing Initiative is working on a business plan for a community land trust and also hopes to acquire a couple of properties to sell to income-qualified families next year, said the Rev. Ty Hullinger, a member of the group who oversees three Roman Catholic parishes in Northeast Baltimore, including St. Anthony of Padua.
In Park Heights, Will J. Hanna II of the New Park Heights Community Development Corp. also has founded a nonprofit with similar goals.
Advocates say land trusts are a way to bridge the gap between two parts of Baltimore's housing crisis — the struggles faced by the city's many rent-burdened or homeless families and the neighborhoods hurt by an abundance of vacant and foreclosed housing stock — without ceding control of communities to investors.
"We know we have to start small," Hullinger said. "We're going to have to prove ourselves."
The groups face questions about their financial viability — as well as doubts about using such programs in a city where many neighborhoods continue to experience population decline, less because of pricing pressures than because of disinvestment, and concerns about safety or poor schools.
Chris Ryer, president of the Southeast Community Development Corp., said he thinks the idea is worth exploring but that he has reservations.
"I'm not sure it's the right fit for Baltimore," he said. "I hate to put a homeowner, especially a low- or moderate-income homeowner, in a situation where they can't capture the equity in their house that every other American does."
"You've got to focus on the quality-of-life issues and the things that make good neighborhoods," he added.
James J. Kelly Jr., a clinical professor of law at Notre Dame Law School, helped start the Charm City Land Trust more than 15 years ago when he lived in Baltimore and worked at the University of Baltimore Law School.
Kelly said he also was initially skeptical about starting a land trust in Baltimore, but said a community-led model is important, given Baltimore's history of urban-renewal projects that displaced residents, especially residents of African-American neighborhoods.
Land trusts have "always been about community democracy to some extent and direct community control, even in areas where, quite honestly, gentrification isn't a presenting issue but the fear is quite understandable and justifiable based on people's historic experiences," Kelly said. "That's another reason why the land trust model should be thought of sooner rather than later."
More than 200 community land trusts exist across the United States, representing more than 10,000 rental and for-sale units, according to the National Community Land Trust Network. The idea has been gaining attention nationally as rising rents prompt concerns about gentrification.
Community land trusts tend to be associated with places such as Boston, where they've been used to preserve affordable pockets in pricey housing markets, or resort communities, where second-home buyers skew housing markets, paying prices that year-round residents cannot, Kelly said.
They're most effective if started when land is still cheap, especially if rents are expected to rise, as is the case in many cities today, said Susan M. Wachter, a professor of real estate at the University of Pennsylvania's Wharton School and co-director of the Penn Institute for Urban Research.
"It's an extremely important model, especially in cities that are on the cusp or in neighborhoods that are on the cusp of becoming not affordable," she said, citing the long-term nature of the model. "This should be taking off now. This is exactly the right set of circumstances."
Until 2010, when the General Assembly changed state law, community land trusts couldn't really exist in Maryland, a holdover from the rules governing ground leases.
Advocates for community land trusts have faced lingering suspicion related to a history of abuses of ground leases. A 2006 investigation by The Baltimore Sun found some investors were trading the leases and sometimes using small unpaid rents as a way to seize homes.
The organizations also face questions about whether they have the money and staying power to achieve their goals.
Julia Day, deputy commissioner at Baltimore Housing, said the department is open to the idea and helping groups find properties that might be suitable for land trusts, but she was more hesitant to commit to funding.
City Councilman Bill Henry, who organized a council hearing on the trusts last summer, also said he likes the idea and the way it secures permanent affordability, but given the limited funds available for community development, he isn't sure giving funds to a land trust is best policy.
"I would love to see the city take a larger role in more community development across the board. Should we specifically fund land trusts over funding more traditional community development corporations? I don't know that I could make the case for that," he said. "They're new for us, and we're just kind of trying to wrap our heads around them."
If the community land trusts move forward, the groups will face other challenges.
It takes time to find buyers who meet the income limits and have the financial wherewithal to take on a mortgage, said Jennifer Minnick, director of the Frederick County Affordable Housing Land Trust, cited as Maryland's first up-and-running affordable housing land trust. In Frederick County, prospective buyers had to earn less than 80 percent of the county's $107,000 median household income.
Some potential buyers were put off by the resale limits, she said. It varies by land trust, but in Frederick's case, the homeowner earns only 40 percent of the home's appreciation — a split that allows the land trust to subsidize the next buyer.
Appraisers and lenders were wary, too, she said.
"I've had to do a lot of community outreach to get folks to understand the benefits of the program," she said.
Peterson bought the second of two homes sold this year by the trust, an affiliate of Habitat for Humanity that also received county support to get started. The trust has two more homes under contract and expects to reach an agreement on a third this month, Minnick said.
Peterson, who works at the Humane Society and earns about $40,000 a year, said land trusts were new to him, and he was uncertain at first about some of the restrictions the agreement entailed but decided the opportunity was too good to pass up.
"I didn't think I would ever possibly be able to purchase a house," he said. "I'd recommend it to anyone who's in a similar financial situation as me."
Charm City Land Trust board member Gary Dittman, pastor at McElderry Park's Amazing Grace Lutheran Church, said the organization is still working out the details and he knows there are many challenges — especially since his group hopes to sell the home for far less than those in Frederick County.
But he said he hopes to prove that McElderry Park — not far from the Johns Hopkins medical campus and other more affluent parts of Southeast Baltimore can flourish, while keeping its longtime residents.
"To me, we have the most unique possibility to be a truly mixed-income, walk-to-work neighborhood. We could be a stellar model of that," he said. "The climate right now is ripe."
Hmmmmm, that Baltimore City council DORSEY from the NE LAND TRUST community ---no wonder he is slated to be that next O'MALLEY----placing land deals in our communities right into the hands of global 1% CD REITS---and on real estate slated to be that global corporate campus----reverting to that global corporate campus once built---same happening in South West Baltimore.
The Northeast Baltimore Housing Initiative is working on a business plan for a community land trust and also hopes to acquire a couple of properties to sell to income-qualified families next year, said the Rev. Ty Hullinger, a member of the group who oversees three Roman Catholic parishes in Northeast Baltimore, including St. Anthony of Padua.
In Park Heights, Will J. Hanna II of the New Park Heights Community Development Corp. also has founded a nonprofit with similar goals.
US citizens buying real estate and building homes along flood plains tied to rivers or coastlines are NOT being given long-range flood guidelines by our FEMA these few decades because FEMA has been under control of CLINTON/BUSH/OBAMA---what we are seeing these few decades are homeowners thinking they are covered by flood insurance---or thinking their homes are NOT in a flood plain when in fact they are.
This article shows Baltimore and those waterfront real estate going up the hills of city center----but they do not show where those flood plains will be as climate change makes these storms more severe---as sea levels rise and that is only 50 years from now.
How does all this affect housing on global corporate campuses those few miles of Baltimore East and West? Global corporate campuses are massive concrete and building with road infrastructure that no matter how much global Wall Street 1% tell us they have engineered to mitigate flooding----THEY DO NOT. There is no wetland mitigation under miles of road, concrete, in what are valley real estate.
This is FEMA acting as FDA which recently officially stated that fracking was contaminating our fresh water ground and aquifer AFTER ALL THAT CONTAMINATION OCCURRED. These Federal agencies are staffed with 5% global Wall Street players whose job is to make sure 99% OF WE THE PEOPLE never know what the real outcome of development will be
New FEMA Flood Maps Could Mean Insurance Rate Adjustments for Coastal Marylanders
By Dani Shae Thompson September 25, 2014
Anne Arundel County property owners wait in a long line in the cafeteria of South River High School in Edgewater, Maryland.See how flood maps have changed in this interactive graphic.
ANNAPOLIS — A long line of anxious property owners snaked through the cafeteria, past a sign-in table and down the hall—each of them waiting to be told whether they were in or out.
Floodplain maps have been redrawn by the Federal Emergency Management Agency in Maryland, Virginia, Pennsylvania and Delaware, a change that could shift properties into or out of a flood risk zone.
The updated maps are used to calculate flood insurance rates, so for homeowners whose properties moved into FEMAs designated flood risk areas, the map change could mean paying more for flood insurance.
Likewise, for properties that are no longer in a flood risk area, flood insurance costs may be lowered or insurance may no longer be required.
A FEMA Open House sign in the lawn of South River High School in Edgewater, Maryland, on Sept. 9.Over 200 Anne Arundel County residents attended a FEMA community open house in Edgewater’s South River High School on Sept. 9 to find out whether their property was among those affected.
One by one, attendees were directed to a long table of computers, monitors, and printers staffed by FEMA outreach team members.
Vivian and Harry Crispell, a couple from Churchton, were among those waiting in line to hear the news.
“We’ve lived in our home for 30 years and have always had flood insurance,” said Vivian Crispell.
During that time she has seen the price of that insurance slowly climb.
She and her husband lived in their home during Hurricane Isabel in 2003. The water came up to their house, set back about 500 feet from the shoreline of the Chesapeake Bay, but didn’t do any damage.
A FEMA outreach representative (far right) shows property owners a map of the new floodplain on a computer monitor in the cafeteria of South River High School in Edgewater, Maryland.There on the monitor, new digital flood insurance rate maps displayed two images of their property on the screen—before and after snapshots that showed an aerial view of where the floodplain was and where it had been moved in relation to the property.
A series of colorful, shaded regions on the maps denote areas of high risk, moderate risk, low risk and no risk.
“Looks like we’re in the clear!” Harry Crispell said.
According to the previous version of the flood insurance rate maps, the Crispells’ home was in a low-risk flood area. Now, their property is shown in a no-risk zone.
Anne Arundel County redrew its floodplain maps in 2012, and FEMA followed last year. For some other counties, the new digital versions are replacing paper floodplain maps that date back 10, 20 or even 30 years. The need for updated and more accurate maps prompted FEMA’s coastal flood hazard analyses in Maryland, Virginia, Pennsylvania and Delaware.
The agency’s extensive study began in 2009 and made use of more modern digital mapping technologies and storm surge modeling.
FEMA completed its newest versions of the maps in Maryland county by county, starting in 2013. New digital flood insurance rate maps have already gone into effect for Baltimore County, Baltimore and Kent County, and will be effective in 14 other Maryland counties by early 2016.
Garrett, Allegany, Washington, Frederick, Montgomery and Howard counties are not being remapped as part of the study.
Although most of the digital maps are available online, regional FEMA representatives have been touring the coasts of Maryland, Virginia and Delaware to hold open house events like the one in Edgewater.
Open houses have already been held in all affected counties except Talbot, where a meeting will be scheduled for 2015.
The goal is to spread awareness and educate property owners about the changes to the maps—changes that could better identify their risk during flooding events.
Richard Hull from Edgewater, Maryland, holds up his FEMA map printout. His home has moved out of a FEMA flood risk zone.Like the Crispells’, neighbors Richard Hull and Steve Boccabello also received good news about their homes near the Loch Haven marina in Edgewater.
According to the previous flood zone map, both of their properties were within the low-risk zone, meaning their mortgage lender could require them to get flood insurance.
Now, both have moved out of the risk zone completely, meaning their flood insurance rates could be reduced or no longer necessary — a result that was common for many open house attendees in Edgewater.
About 3,000 properties in Anne Arundel have moved out of flood risk zones, while only 435 are moving in, according to the county’s Office of Planning and Zoning.
The Federal House, City Dock Coffee, The Pink Crab and Maria’s Sicilian Ristorante & Café in downtown Annapolis are no longer in a FEMA flood risk zone.Among those properties moving from moderate risk to no risk on FEMA’s new map is a row of businesses on Market Place Street near the Annapolis Harbor.
For Karen Johnson-Gedney, owner of City Dock Coffee on Market Place Street, moving out of the flood zone doesn’t mean she will be opting out of her flood insurance.
“I will likely keep some degree of flood insurance simply because I lived through Hurricane Isabel in 2003 and I remember the devastation. They say that was a ‘once in a lifetime’ storm, but who knows,” she said.
A small plaque on the wall near the register marks where about a foot of water flooded the coffee shop.
While hurricane Isabel was one of the worst storms in recent memory for Marylanders, it was not the only storm that caused significant flood damage.
Hurricane Floyd in 1999 also hit Annapolis hard, flooding the city docks with 11 inches of rain and badly damaging the Liberty Tree, an Annapolis landmark.
“People who were around during Isabel or Floyd know how bad the damage was and even if they aren’t in a high-risk area they want to feel protected, “ said Greg Clem, customer service representative for Henry M. Murray Agency Inc. in Annapolis.
“It’s peace-of-mind coverage.”
Clem said he has received a large volume of calls from flood insurance customers asking about changes to their coverage.
On average, properties moving into lower-risk flood zones see a one-third reduction in their flood insurance cost, Clem said.
And insurance for those properties now considered at higher risk of flooding could be three times higher.
Reduced insurance rates for those in flood risk zones may be obtained if a community participates in the National Flood Insurance Program, a program that helps residents obtain lower-cost, federally backed flood insurance—so long as that community enforces FEMA flood development regulations.
Maryland has 141 communities participating in the National Flood Insurance Program. The full list can be found at http://www.fema.gov/cis/MD.html.
For participating communities, properties changing from low risk to high risk may be able to save money with the program’s “grandfather rule,” which allows homeowners to lock in their current insurance rate, so that it will not significantly increase right after the new maps go into effect.
Many factors go into determining flood insurance rates, but property owners can contact their mortgage lender and insurance agent to determine whether their rates will change as a result of the new digital maps.
For more information about the National Flood Insurance Program, visit https://www.floodsmart.gov/.
To view your property on the Digital Flood Insurance Rate Map, visit http://riskmap3.com/MD.
So, we see affordable housing moving to a HUNT VALLEY---valley meaning lowland----we see affordable housing along the east and west waterfront----we see affordable housing in the valley around Mt Washington.....Park Heights/Lutherville
We gave known for these few decades that flood maps have been left to be outdated---AND they never show coming climate change weather and sea level rise-----so here we are in 2017 with NPR telling us just that but guess what? Most of these coastal communities were the first to be developed----as in Baltimore's downtown----Harbor East and West---if one even mentions changing MOVING FORWARD MASTER PLAN development in city center one gets silenced and heads for the door.
Between coastal flooding and global corporate campus development in what are Baltimore's surrounding communities tied to the lowest valley real estate -----this MOVING FORWARD US CITIES DEEMED FOREIGN ECONOMIC ZONE MASTER PLANS as in Baltimore----will have all these real estates both corporate campus and 99% of citizens' homes built in what will be zones of PUBLIC HEALTH AND PROPERTY RISK.
NPR's MARKETPLACE MONEY in charge of all NPR news especially after the 2008 economic collapse knows very well the ties of REIT AND CD REIT to these very bad and dangerous developments------NPR knows our US cities deemed Foreign Economic Zone development these several years of OBAMA was this very coastal flood plain tied to ports yet it only comes forward in 2017.
You mean all that development along Port of Baltimore East and West will be subjected to what NPR reports in this article? They have been MOVING FORWARD this development these few decades with no intentions of stopping a MASTER PLAN----SAYS GREATER BALTIMORE DEVELOPMENT, BALTIMORE DEVELOPMENT LED BY GLOBAL JOHNS HOPKINS.
Mapping Coastal Flood Risk Lags Behind Sea Level Rise
July 27, 20174:53 PM ET
Heard on All Things Considered
Sea levels are rising and climate scientists blame global warming. They predict that higher seas will cause more coastal flooding through this century and beyond, even in places that have normally been high and dry.
But mapping where future floods will strike has barely begun.
The Federal Emergency Management Agency maps where people are at moderate or high risk of flooding. Most people with property in hazardous areas — where the annual risk of a flood is one in a hundred or more — are required by law to buy federal flood insurance from FEMA's National Flood Insurance Program.
But FEMA's insurance maps are based on past patterns of flooding. Future sea level rise — which is expected to create new, bigger flood zones — is not factored in.
So some communities are doing the mapping themselves. Like Annapolis, the state capital of Maryland.
About 40 times a year, the Chesapeake Bay floods this port city, where Lisa Craig is chief of historic preservation. As she and I walk downtown near the city dock on a sunny summer day, we soon encounter sheets of water on the street.
"You can see we're not quite at high tide and we've already topped," she says. This overflow onto the streets wasn't caused by a storm.
"This is just a normal high tide," Craig says.
Flooding is now "normal" in Annapolis. So construction crews are installing metal flood gates in doorways, and vents in floors to drain floodwater from buildings that were built centuries ago, when this area was usually high and dry.
Such measures are fine for this kind of "sunny day" flooding. But Michael Dowling, an architect who works on flood protection in Annapolis, says a big storm will push water higher as sea level rises.
"That's the thing to remember," he says. "Sea level rise is one thing. As our mean water level goes up, if you put a storm on top of that you're going to have a different situation."
By "different situation" he means new flood zones. But where exactly will they be when sea level rises?
City planners in Annapolis asked the Army Corps of Engineers to show them how the flood zone would expand if sea level here rises 3.7 feet — a midrange prediction for 2100. They found that a flood from a one-in-a-hundred year flood would be almost twice as high as it would be if such a storm hit now.
It would be 8.2 feet high – "about the top of that piling," Dowling says, pointing to a wooden piling that rises well above our heads near the water's edge. Where we're standing would be well underwater. And so would a big part of downtown — parts of Annapolis that have never flooded before.
Craig says she wants property owners here to think more about that future. "I think it's going to come down to when the property owner is required to make some changes, they will," she says, adding that "we'll have to incentivize, encourage" people to do that. Because right now they don't have to buy flood insurance — they're not in FEMA's current flood hazard zone.
And getting property owners to buy in to that idea won't be easy.
"Ninety percent of the people that have called me over the past 20 years want to get out of paying for flood insurance," says David Guignet. He's a floodplain engineer for the state of Maryland and coordinates the state's participation in FEMA's flood insurance program.
Given how hard it is to get people to buy flood insurance now, he says, Maryland isn't about to require insurance for people who may end up in future flood zones.
But Guignet does want people to know if their property lies in the path of sea level rise. He says a homeowner may look at his or her property on a map and decide, " 'In 30 years, if the sea level rise is going to get to that point, well then I might decide that I want to move by then,' " he says, " 'or maybe do other things when I modify my house so the next [addition] I build is higher.' "
On a computer screen in Guignet's Baltimore office, we look at a map of Oxford, Md. Lots of coastal properties there lie in FEMA's flood zone. Guignet clicks an icon to add 3 to 5 feet of sea level rise. Most of those properties on the map are suddenly covered in blue: permanently submerged. And that's calm water; a big storm would push water even farther inland.
And if sea level rises more than 5 feet? The screen shows what happens.
"Now it looks like Oxford is gone when you have the 5- to 10-foot level on top," Guignet says.
Five to 10 feet of sea level rise isn't likely, but Guignet says homeowners should be able to see the full range of risk scenarios that scientists are applying to coastlines.
FEMA isn't making maps like these, although Guignet says they helped Maryland with the data and technical support do it. In fact, the agency is still struggling to update its existing flood maps.
Roy Wright, FEMA's flood insurance chief, told a Senate hearing recently that almost half its maps are "credible," but not "precise." Precision, Wright said, "comes down to how much we can afford to buy. It's a resource question. Precision costs more money."
Last year, FEMA got $311 million to spend on mapping, about three quarters of what the agency said it needed. President Trump's new budget would cut the mapping budget even more.
This comes years after independent flood experts – FEMA's Technical Mapping Advisory Council — told the agency to start paying more attention to sea level rise.
What does FEMA need to fix its existing maps and start factoring in future risks from climate change?
"I must have elevation data that is digital to do any of the [mapping] products," Roy Wright tells me, "including the future risk pieces that you're mentioning."
Elevation data show how high buildings and land are above sea level. The best data come from airborne lasers, called LIDAR, and the technology is expensive. Wright says so far he only has precise elevations for half the country.
While maps that FEMA uses to decide who must buy insurance don't include sea level rise, the agency is advising local governments on where it might be risky to build in the future, and encouraging them to build "stronger and higher." But Wright says it's not FEMA's job to require people to insure themselves against future risk.
"Communities have the option to include future risk on their maps," he says. "It's their choice."
FEMA's role, Wright adds, is to inform people of their risks. And the agency isn't yet communicating true flood risk to the public the way he'd like to, he says.
"It hasn't worked effectively enough yet," he says. "I think that's one of the public policy challenges. What will the reality be for that homeowner 10 years down the road, 20 years down the road?"
Meanwhile, scientists say the rate of sea level rise is accelerating.
Here we see the global monopoly on real estate sent soaring during CLINTON/BUSH/OBAMA-----not only does REIT push the development of real estate known to be compromised it has an INSURANCE BRANCH to cover those properties AND it has control of FEMA charting flood plains.
What we saw during CLINTON/BUSH/OBAMA were the 99% of home and business owners pushed onto land known to be flood plain at a time climate change was going to create DISASTER. What occurred when disaster happened on REIT-OWNED real estate? Flood insurance was not paid because those developments were on a flood plain. The exact situation is now unfolding in US cities like Baltimore. Our Baltimore City Council not only passes those zoning laws allowing for development on what will be FLOOD PLAIN---it no doubt has REIT CD====REIT INSURANCE tied to all of these developments.
This same situation goes for those global corporate campus factories being built in what are low-lying valleys surrounding city center.
DELIBERATELY, WILLFULLY, AND WITH MALICE ALLOWING THESE KINDS OF DEVELOPMENTS HITTING 99% OF WE THE PEOPLE ADVERSELY AND DOING GREAT HARM IS ILLEGAL AND PUBLIC MALFEASANCE
Those global Wall Street 5% are hawking all these REIT real estate deals as hard as they can to be PLAYERS. That includes those 5% FAKE RELIGIOUS freemason groups------no one religious would set the stage for these disasters.
Global Real Estate Investment Trust
Flood insurance premium savings of $114,000; adding $1.6 million in property value.
A real estate investment trust engaged AmeriFlood Solutions, Inc. (AFSI) to audit the elevation certificates for a property, where the combined annual premiums for six insured structures exceeded $118,000. AFSI found that the National Flood Insurance Program (NFIP) policies were incorrectly rated due to significant errors and omissions on the elevation certificates. AFSI facilitated the preparation, completion and review of new elevation certificates, which reduced the annual cost of premiums by more than 95 percent.
The data provided by an elevation certificate is critical to the process of properly rating a structure for coverage commensurate with the actual flood risk. AFSI deploys a team of flood and land professionals to audit new and existing elevation certificates; and coordinates a national network of licensed surveyors and engineers to collect accurate data, free from errors and omissions that increase the cost of coverage.
Is your elevation certificate free from errors and omissions? If not, you may be paying too much or not enough for flood coverage. Contact AFSI for an elevation certificate review or quote.
Real Estate Investment Trust (REIT) Insurance*
Our policy forms are written specifically for this class of business.
* We do not try to modify a DP3 or HO3 form and endorse it to fit some of the exposures leaving you EXPOSED to Uncovered Risks.
* Our Policy covers the exposures that will be incurred by this type of property. YES, we cover Vandalism for Vacant Property!
* We Issue a Master Policy, you add and delete properties, sight unseen by the carrier. NO Underwriter Turn Downs!
* There is no need to submit for approval prior to adding each property. Yes, your read that correctly!
* Residential Dwellings, Manufactured Homes, Commercial Property, Vacant Land, Scheduled Vehicles and Collateral
* All Classes Occupied or VACANT
Motorcycle Insurance - use current information
Boat Insurance - use current information
Storm Impacted Markets Provide Demand Lift For Timber REITs And Self-Storage REITs
Sep. 15, 2017 9:27 AM ET
Includes: EXR, LSI, PCH, WY
Anne Anderson, CFA
Research analyst, REITs, dividend investing, growth at reasonable price
Storm impacted markets in Texas and Florida provide demand lift for Timber REITs and Self-Storage REITs.
Flood driven renovations should benefit demand for 6 months to 1 year.
Recommending Timber REITs Weyerhaeuser and Potlatch, as well as Self-Storage REITs Extra Space Storage and Life Storage.
Flood recovery in Texas from Tropical Storm Harvey and in Florida from Hurricane Irma will take many months to start and complete. Insurance claims take weeks or months to process in full, while renovations may be delayed by design requirements and availability of local labor resources. As a result, investors should assume that there is plenty of time to take advantage of the expected demand increment.
Here are 4 stocks to enable income investors to benefit from storm related construction and renovation spending :
1) Timber REIT Weyerhaeuser (WY) UP +10% year to date
2) Timber REIT Potlatch (PCH) UP +16% year to date
3) Self-Storage REIT Extra Space Storage (EXR) UP +1% year to date
4) Self-Storage REIT Life Storage (LSI) DOWN (7%) year to date
Timber REITs should see the benefit of both higher total industry demand for board feet of lumber, as well as higher prices for lumber and wood products of all types. Eventually, sawlog demand and sawlog prices should benefit as well.
While most storm damaged homes may require little more than ample sheetrock replacement, others will require new windows, awnings, roofs and garages. Some homeowners may decide to sell their storm-damaged homes as is, if they view their insurance claim reimbursement as inadequate, applying funds received for a down payment on a new home in a neighborhood less exposed to flood damage. Thus, demand for new homes is likely to increase, driving incremental lumber demand from homebuilders. Previous forecasts indicated US new home starts at 1.25 million for 2017, up 3.6% from 2016; this number now appears low by as much as 1%-2%. In short, strong storms such as Tropical Storm Harvey in Texas and Hurricane Irma in Florida are good news for Timber REITs.
Why are 'SUSTAINABLE' growth policies creating a falling market in TIMBER REITS? Because those timberlands privately owned but tied to REIT so no taxes were paid are now BURNING UP due to climate change so of course there will be no REIT-OWNED LAND OR REIT INSURANCE tied to a burning West Coast-----who now is charged with the costs of maintaining and fighting these forest disasters? TAXPAYERS. Who took the losses for REIT investments in real estate known to be heading UP IN SMOKE? REIT SHAREHOLDERS----who are REIT shareholders? The 99% of investors tied to lower-tier REIT investments.
It is those 5% black, white, and brown citizens getting that little REIT stock dividend in US cities that will PRETEND to be those low-income community citizens' PROTECTORS ----especially in AFFORDABLE HOUSING AFFORDABLE HOUSING SAVING OUR COMMUNITIES ----profiteering from these bad real estate deals these few decades----
SHOW ME THE MONEY AND WE WILL BUILD HOUSTON AND NEW ORLEANS TO GO UNDER WATER----AND MOVE FORWARD THE SAME IN BALTIMORE TOO!
Timber REITs Are Falling
Increasing non-commercial competition and unsustainable growth strategies are sending timberland REITs straight to the furnace.Zach Carvalho
Jan 17, 2014 at 10:48AM
Plum Creek (NYSE:PCL) is one the largest names in the U.S. timber industry, especially in the northwest where it has planted its Seattle headquarters. Despite a strong brand name, Plum Creek, as well as other timber REITs, are facing considerable hurdles in the near future.
One of the main issues facing the timber industry is a lack of newly available and harvestable timberland. While most timberland is already earmarked as wildlife preserves or commercially utilized territories, there are still available lands; however, a relatively new surge in non-commercial competition has made these lands poor investments. According to the CEO of Potlatch (NASDAQ:PCH), major universities continue to increase funding for forestry programs and as a result are able to consistently outbid commercial cutters like Plum Creek in order to use those lands for the private use of the university. Conclusions similar to this are also supported by studies from the USDA and local forestry agencies.
In addition, companies like Rayonier (NYSE:RYN) have attempted to fuel growth by better utilizing their existing timberland. Rayonier began utilizing the pulpwood from its lands to produce pellets for use in stoves acting as alternatives to traditional wood stoves. While popular in Europe, the growth of these pellet stoves appears to be idling and with Rayonier already the primary U.S. competitor in that market the cost of developing an influence in the area is likely to keep competitors away from entering the region. In a recent note, Deutsche Bank's Mark Wilde stated "recent contract negotiations suggest a drop in 2014 cellulose specialties (CS) and slower transition to CS."
A natural inclination among financial managers faced with the prospect of essentially no remaining positive net present value projects may be to bid for competitors. The timber industry is already largely consolidated, however, with only four major publicly traded timberland REITs including Plum Creek, Rayonier, Weyerhaeuser (NYSE:WY), and Potlatch. These four companies have seen stable appreciation in their stock price since 2008 as the U.S. housing industry has recovered; however, with minimal growth prospects and P/E ratios around 29, 15, 27, and 24 times, respectively (remember that Rayonier at 15 times also earns much of its revenue from pulpwood pellets that are in declining demand), it appears that the entire industry is poised for declining share prices.
As REITs, all four of these companies pay 90% of funds from operations to shareholders in the form of dividends as mandated by the IRS. In order to help boost these dividend payouts in recent years the timberland REITs have turned to selling what are known as higher-and-better-use (HBU) properties. These properties are generally classified as those that could generate more revenue if used for non-logging purposes (imagine felling timber around a hot spring that could instead be surrounded by a hotel, restaurant, and its very own gift shop). As the REITs continue to sell HBU properties their supply is certain to run out eventually and along with those HBU properties may go a substantial portion of recently boosted dividends.
Avoid the timberland REITs
The timber industry faces a number of challenges including increased activity among non-commercial timberland purchasers and limited investment in new or innovative timber-based technologies. While typically an industry more concerned with the stability of the housing market than the potential for growth opportunities, the timberland REITs recent reliance on HBU sales doesn't bode well for the future of the company's dividends. Additionally, high valuations could lead owners of the shares into more trouble as prices decline. For now, it appears that the timber industry has gotten ahead of itself and may be poised for a correction.