Investing In Green-Building Real-Estate Companies Becoming More Viable

17 aUG, 2010 - Not everyone who believes in the future of green buildings can build one themselves, but investing in real estate companies that share this conviction is an increasingly viable option.

Real estate companies and real estate investment trusts have been boosting the environmentally friendly credentials of their buildings, often turning to the U.S. Green Building Council's Leadership in Energy and Environmental Design rating system.

Out of 135 REITs, 52, or about 38%, have some space that they disclose as having a LEED certification of some type. This accounts for about 9% of the total space owned by public REITs, according to Uniplan Investment Counsel Inc., an investment advisory firm.

"One thing that's interesting is even despite the downturn, real estate investors have remained focused on energy efficiency" said David Wood, Director of the Initiative for Responsible Investment at Harvard University. "In part that is because it is something they can focus on. You can work on benchmarking their performance even while the market is fairly frozen."

Some REITs say that over the last few years they have constructed all-new buildings to a LEED standard and are looking to renovate existing buildings to make them greener. Since buildings are a long-term asset, these REITs say sustainability is a good long-term investment since the future looks green.

Jack Rizzo, chief sustainability officer for ProLogis (PLD), said building green increases the value of the property long-term and improves tenant retention rates. ProLogis is a REIT that owns warehouse facilities. It has 45 million square feet certified as green building out of a total portfolio of 475 million square feet worldwide.

The company made an official commitment in 2008 to build all new buildings in an environmentally friendly way. It has therefore obtained a listing on green indexes like the Dow Jones Sustainability Index, which has offered up a new set of investors, Rizzo said.

Publicly traded real estate company Thomas Properties Group Inc. (TPGI) Executive Vice President Randy Scott said green buildings mean lower operating cost and more efficient operation.

"Those savings end up being shared with the tenants who lease our building," Scott said. "It becomes a competitive advantage for us. We believe LEED-rated buildings have an advantage in the marketplace."

Thomas Properties has 15.4 million square feet under management and 13.4 million feet are buildings considered Energy Star-rated, which is an Environmental Protection Agency energy efficiency standard. Also, 4 million square feet of its portfolio is LEED-certified and another 5.3 million square feet is in the process of obtaining LEED certification. Scott also said investors have responded well to the company's green strategy.

Uniplan says that REITs that have a better Progressive Score--a rating system that the company uses that includes areas like sustainability, government relations and worker treatment--tend to have a higher return on invested capital over a complete real estate market cycle.

"This will normally result in share price outperformance relative to their lower-ranked peers," said Uniplan President Richard Imperiale.

The National Association of Real Estate Investment Trusts realized green buildings were becoming an important part of the industry and created the Leader in the Light award program in 2005 to recognize companies that had outstanding energy efficiency.

"Even in the challenging market conditions of recent years, more and more REITs have shown that a consistent focus on sustainability and energy efficiency is not only a positive for the company and the environment, but also for shareholders," said Sheldon Groner, executive vice president of finance and operations for NAREIT.

Steve Frankel, an analyst with Green Street Advisors, an independent research company that focuses on publicly traded real estate companies, said green buildings cost about 2% to 5% more to build, but the extra cost is made up through operational savings.

"Buildings in the future are going to have to have environmental elements and if you're not building a building that's environmentally friendly it might go obsolete quickly," Frankel said. "Also, you'll get a better net rent over time because it generates lower operating costs."

-By Sari Krieger, Dow Jones Venturewire; 212-416-2016; sari.krieger@dowjones.com
source: online.wsj.com

Real estate trouble in the Golden State?

08/17/2010 - Today: Southern California home sales plunge in July. Zynga buys a Boston game developer. Hewlett-Packard buys San Mateo software maker Fortify.

Real estate trouble?

Last week, we had a report from the National Association of Realtors of a second-quarter upturn in the real estate market -- especially in California metro areas such as San Jose and San Francisco.

That report, though, came with a warning of a summer slowdown, in part because of the expiration of federal tax credits of as much as $8,000 for many homebuyers.

Today, we definitely have evidence of a housing market slowdown in the Golden State. According to MDA DataQuick, the number of home sales throughout Southern California in July had its biggest year-over-year drop in two years.

In Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties, the number of sales was down 20.6 percent from the month before and 21.4 percent from July 2009.

"It appears some of the sales that normally would have occurred in July were instead tugged into June or even May as buyers tried to take advantage of the expiring tax credits," DataQuick President John Walsh noted today. 'Some of last month's underlying technical numbers were largely flat, indicating that the market is treading water."

Despite the drop in sales, the median home price in the region climbed 10.1 percent year over year to $295,000.

As for Silicon Valley and other counties in Northern California, we expect DataQuick to report data for July later this week.

Zynga buys Conduit Labs

Zynga, the San Francisco maker of Facebook games such as "FarmVille," has bought Conduit Labs, a social games upstart based in Boston.

Terms of the deal weren't disclosed, but Conduit Labs CEO Nabeel Hyatt will now be in charge of Zynga's Boston game studio. Conduit's titles include music games such as "Loudcloud."

"We have always had the desire at Conduit to build something ambitious, and we recognized that sometimes the best way to achieve these dreams is with a partner who can bring amazing resources to bear," Hyatt wrote today on his startup's official blog.

Conduit was founded in 2007; it has received funding from Charles River Ventures and Prism VentureWorks. According to TechCrunch, the two firms have poured $8.5 million into the startup in two funding rounds.

HP buys Fortify

Palo Alto tech giant Hewlett-Packard has acquired Fortify Software, a San Mateo software upstart founded in 2003 in the basement of Silicon Valley venture capital powerhouse Kleiner Perkins Caufield & Byers. Financial terms weren't disclosed.

Fortify makes software that helps businesses protect digital information, reduce risk and comply with financial regulations. The company initially operate as a stand-alone business, but will be integrated over time into HP's software and solutions unit.

"Fortify has always been committed to helping chief information security officers and application teams find, fix and prevent

security vulnerabilities before they can be exploited by attackers," Fortify CEO John Jack said in a news release. "Joining HP will allow us to further integrate our proven technology and security expertise with HP's solutions."

According to a recent Mercury News profile, Fortify has received more than $40 million in funding from Kleiner Perkins and other investors.

More tech headlines

Aruba Networks: The Sunnyvale maker of wireless equipment is expanding a partnership with Texas computer maker Dell. In a multiyear deal, Aruba's wireless networking technology will be sold under Dell's PowerConnect brand.

The deal with Aruba follows Dell's announcement yesterday that it intends to buy Fremont data storage provider 3Par for $1.15 billion.

Microsoft: The Redmond, Wash., software behemoth is linking its popular Xbox 360 video game console with its upcoming Windows 7 Phone software.

According to our friends at The Associated Press, Microsoft intends to deploy Xbox game developers to create titles for its smartphone platform. Microsoft also intends to make it more efficient for outside developers to make games for both the Xbox and Windows phones.

Silicon Valley tech stocks

Up: Apple, Google, Cisco Systems, Oracle, Intel, HP, VMware, eBay, Gilead Sciences, Yahoo and most Silicon Valley tech stocks were higher.

On Wall Street today, strong earnings from retail giants Walmart and Home Depot fueled investor enthusiasm.

The tech-heavy Nasdaq composite index: Up 27.57, or 1.3 percent, to 2,209.44.

The blue chip Dow Jones industrial average: Up 103.84, or 1 percent, to 10,405.85.

And the widely watched Standard & Poor's 500 index: Up 13.16, or 1.2 percent, to 1,092.54.
source: www.mercurynews.com

Best Obama’s Mortgage Loan Modification Program Today 2010

World economy has taken a major hit. People all over the world are having a hard-time managing their deteriorating finances. Job losses and demotions have become routine in all companies. In such a situation, mortgage loan has become a burden for many homeowners. If your savings are depleting, and monthly payments becoming a nightmare, then it is time to consider a obama mortgage loan modification.

What is loan modification?

It is a change in the terms of a mortgage, which is usually facilitated by the loss mitigation department of a lender when a borrower has missed (or expects to fall behind) on their mortgage payments. It is offered by the same mortgage company, unlike refinancing where one has to approach a different finder. Hence, closing fees is not charged. Also, it is easier to avail loan modification as compared to refinancing.

Homeowners can approach a loan modification service provider for professional assistance. This will boost their chances of a loan modification approval as they can negotiate with the lenders in a better manner. They assist the borrowers in filling out forms, writing the vital hardship letter, and handling the legal issues with ease. A homeowner in crisis may think of saving up on the fees to be given to the mortgage modification service providers by undertaking the procedure themselves. However, their assistance will prove beneficial because they can most probably grab a better deal for the debtors.

Obama’s Loan Modification Programs and Your Money with Mortgage Loan Modification

A loan modification benefits the defaulter in the following ways:

* interest rate on the loan may be decreased
* interest rate may be converted to a fixed rate rather than a variable one
* the repayment terms can be modified and stretched out to allow a longer repayment period
* the balance on the loan can be reduced if it is verified that the outstanding balance exceeds the existing value of the home
* one or more of the above conditions may be granted by the lenders

In the present scenario, home loan modification is offered by many lenders to help defaulters get back on track financially. It is in the interest of the lenders as well, because a foreclosure or bankruptcy can be avoided in the future.


source: www.mortgage11.com

Property Firm That Lost Value Sues Halliburton

AUGUST 5, 2010 - St. Joe Co., a large Florida real-estate developer that owns resorts on the Gulf of Mexico, filed suit against oil-services company Halliburton Co., seeking more than $1 billion in damages related to the Deepwater Horizon oil-rig explosion and subsequent oil spill.

In a complaint filed in state court in Delaware late Wednesday, St. Joe said that Halliburton, which provided key structural work on the oil well, "ignored multiple warning signs" that could have prevented the disaster.

St. Joe, which owns 577,000 acres of land in Florida mostly within 15 miles of the Gulf and is the biggest landholder in the Florida Panhandle, said the April disaster resulted in huge losses for the company when hundreds of tourists canceled vacation plans to stay at its resorts.

The company's stock price fell by 40% in the weeks after the blowout, resulting in a $1 billion decline in market capitalization. The shares have remained depressed even since BP stopped the gushing oil on July 15.

Although Halliburton had workers aboard the rig the day of the explosion, it was not responsible for making most decisions on the well.

Halliburton, in a statement, said it has not seen the lawsuit yet, but from what it has seen in the media, "it appears to be without merit and we will vigorously defend it."

Gulf Coast residents, businesses and environmental groups have filed hundreds of lawsuits against Halliburton, BP PLC, which operated the well, Transocean Ltd., the rig's owner, and others, seeking compensation for damage from the spill. The suit by St. Joe is one of the first by a publicly traded company claiming damages, in part, due to a loss of investor equity.

St. Joe sued Halliburton first, rather than BP, because it was the quickest way for the company to recoup the majority of its losses, said William Brewer, a partner with Dallas-based Bickel & Brewer, who is representing St. Joe. The company hasn't sued Transocean because Transocean has asked a federal court to cap its liability at $27 million, Mr. Brewer added. St. Joe said it still may file claims against BP, Transocean and other companies involved in the disaster.

In June, BP agreed to establish a $20 billion claims fund to address losses for Gulf Coast residents and business owners. Mr. Brewer said St. Joe wasn't seeking compensation from that fund because doing so might require the company to release BP from liability for any other claims. Mr. Brewer said St. Joe chose to target Halliburton because it considered it equally responsible with BP for the blowout.

"Our market cap has stayed depressed, our sales are impacted, and there is certainly an interruption in our business," Mr. Brewer said, adding that investors will avoid the Florida Panhandle for some time because of a perceived heightened risk.
source: online.wsj.com

Copper Drops in New York on Concern About Outlook for Chinese Real Estate

Aug 5, 2010 - Copper fell in New York and London on concern about the outlook for the real-estate market in China as the government assesses the risk of a possible property-price slump.

China’s banking regulator told lenders to include worst- case scenarios of prices dropping 50 percent to 60 percent in cities where they have risen excessively, a person with knowledge of the matter said. The country is the world’s biggest copper user. Construction accounts for a quarter of demand, according to the Copper Development Association.

Industrial metals were “weaker overnight on worries over the Chinese bank stress tests,” David Thurtell, a Citigroup Inc. analyst in London, said by telephone.

Futures for September delivery fell 2.65 cents, or 0.8 percent, to $3.378 a pound at 8:02 a.m. on the Comex in New York. The contract yesterday reached the highest intraday price since April 29. Copper for delivery in three months declined 0.7 percent to $7,455 a metric ton on the London Metal Exchange.

Prices also slid as orders to draw copper from stockpiles declined for a second day. “It’s the seasonal weak spot for consumption,” Thurtell said.

Chinese regulators have tightened real-estate lending and cracked down on speculation since mid-April, after residential real-estate prices soared 68 percent in the first quarter from a year earlier, according to estimates from Knight Frank LLP.

Demand Growth

Measures to prevent overheating in China are a “good thing to happen,” Rodrigo Toro, corporate senior sales vice president at Codelco, told reporters at the World Expo in Shanghai. They will cap China’s annual demand growth at 8 percent and may keep it at that rate in coming years, he said. Santiago-based Codelco is the world’s largest copper producer.

Canceled warrants, as the orders are known, tracked by the LME dropped 4.8 percent to 28,500 tons, daily exchange figures showed. Warrants are down 13 percent this month after falling 5.5 percent in July.

Copper stockpiles shrank for a second day, slipping 0.2 percent to 413,075 tons. They declined 8.3 percent in July, the most since June 2009, and are down 18 percent this year, on course for the first annual drop since 2004.

Aluminum for three-month delivery on the LME dropped 0.3 percent to $2,222.50 a ton. The contango, cash metal’s discount to the three-month contract, widened to $10.50 a ton yesterday from the prior session’s $10.25, according to LME data. It reached $10 on Aug. 2, the narrowest level since March 23, 2007.

Shift to Backwardation?

“It’s looking increasingly likely that the market could move into backwardation,” Gayle Berry, an analyst at Barclays Capital, said by e-mail yesterday, referring to a premium for cash metal to the three-month contract. “Limited availability of spot metal due to the strong recovery in demand, tight scrap supply and a lot of LME metal being tied up in financing deals” lie behind the shift, she said.

An estimated 70 percent of LME aluminum inventories are tied up in financing transactions, according to Mitsui Bussan Commodities, the industrial-metals trading arm of Mitsui & Co. Stockpiles of the lightweight metal in LME warehouses have dropped 4.9 percent this year to 4.40 million tons.

“I don’t think that financing deals will be broken en masse,” Berry said. “That would require a much tighter spread, especially since further out on the curve there is still a decent contango.”

Higher prices for longer-dated contracts give more scope to profit by buying physical metal and selling futures, provided financing, insurance and storage costs are less than the price difference between corresponding futures.

Tin, Nickel

Tin rose 1.3 percent to $20,560 a ton. The metal, mainly used in electrical soldering, climbed as high as $20,698, the highest intraday price since Aug. 27, 2008. LME inventories dropped to 14,715 tons, the lowest level since June 1, 2009.

A single party holds between 50 percent and 79 percent of stockpiled LME metal, according to exchange data as of Aug. 3. That was up from between 40 percent and 49 percent on July 27.

Lead fell 0.9 percent to $2,222 a ton and zinc slipped 0.1 percent to $2,118 a ton. Nickel gained 0.7 percent to $22,100 a ton after reaching $22,139, the highest since May 24.

source: www.bloomberg.com

Tokyo Shares End Higher As Exporters, Real Estate Stocks Rise

5 Aug, 2010 - TOKYO (Dow Jones)--Tokyo stocks rose Thursday as a weaker yen lifted major exporters, while real estate stocks like Mitsubishi Estate and Mitsui Fudosan gained sharply after data showed a fall in closely watched Tokyo office vacancy rates.

The overall market opened stronger after U.S. data showed a bigger-than-expected increase in private-sector jobs last month. Investors are paying close attention to Friday's U.S. payroll data for clues on the future course of the nation's monetary policy. Depending on the data, speculation may grow that the Federal Reserve might take additional easing steps next week, which could cause the dollar to fall.

"Investors may not take large positions until the FOMC meeting on Tuesday as there is a risk that exporters may fall," said Tsuyoshi Kawata, senior strategist at Nikko Cordial Securities, adding that the Nikkei may remain between 9300 and 9800 for the next few days.

The Nikkei 225 Stock Average rose 164.58 points, or 1.7%, to 9653.92. The Topix index of all the Tokyo Stock Exchange First Section issues rose 11.16 points, or 1.3%, to 857.09, with all 33 Topix subindexes closing in positive territory.

Exporters gained, as the dollar traded above Y86 today. Sony gained 2.6% to Y2,715 and Fanuc added 3.7% to Y10,380.

Real estate stocks staged a rally on data showing a decline in office vacancy rates in central Tokyo for the first time in 2.5 years as of end-July. Mitsui Fudosan gained 5.7% to Y1,340 while Mitsubishi Estate rose 5.5% to Y1,277. The Topix real estate subindex led the board with a gain of 4.9%.

Toyota Motor, which released strong first-quarter results after the market close Wednesday, rose to an intraday high of Y3,195 before ending up 0.5% at Y3,105. Analysts credited the good earnings figures as mainly due to substantial profits in the firm's finance business, however, noting that the operating profit margin stood at just 4.3%, fairly low compared with Toyota's rivals.

By contrast, Isuzu Motors jumped 6.0% to Y264 after it swung to a net profit for the April-June quarter and doubled its full-year net profit outlook.

Asahi Breweries gained 2.0% to Y1,597 and Kirin Holdings added 1.5% to Y1,181 on a Nikkei report that they are ramping up beverage production amid the summer heatwave.

On the other hand, Renesas Electronics dropped 3.4% to Y704 after Goldman Sachs cut its rating to Neutral, saying fix cost reductions are expected to remain between Y20 billion to Y30 billion, short of the brokerage's expectation of between Y40 billion to Y50 billion. The brokerage said as the company's break-even point has blurred, it is difficult to draw a picture of profit recovery until sales growth is confirmed.

September Nikkei 225 futures closed up 130 points, or 1.4%, at 9620 on the Osaka Securities Exchange.

-By Ayai Tomisawa, Dow Jones Newswires, 813-6269-2793, ayai.tomisawa@dowjones.com
source: online.wsj.com

Small Boost to Tokyo Real Estate Means Big Gains for Stocks

August 5, 2010 - Here’s another sign Japan’s fortunes are improving: More people seem to want offices.

The office vacancy rate in central Tokyo fell in July for the first time in two and half years, according to consulting and planning agency Miki Shoji. The improvement was modest at best — the average vacancy rate for five central wards in Tokyo fell 0.04 percentage point from June to 9.10%.

Still, investors seized on the slimly positive news, bidding up shares of real-estate companies. Mitsui Fudosan was up 5.7%, Mitsubishi Estate up 5.5% and Nomura Real Estate Holdings up 7%. “Once office vacancies bottom, a moderate recovery will likely continue for some time,” says Naoki Fujiwara, fund manager at Shinkin Asset Management. The Nikkei Stock Average was up 1.7%.

Mr. Fujwara cautioned that average rents will likely take much longer to show signs of recovery. “Rent (increase) contributions to profits are still far off, but at least we are finally starting to see some hope,” he said.
source: blogs.wsj.com
Real Estate Market Reference Center

Real estate now buyer's market

August 5, 2010 - Greater Vancouver's housing market has caught a chill in the middle of summer.

Residential property sales in Greater Vancouver tumbled 45.2 per cent in July from the same month in 2009, the Real Estate Board of Greater Vancouver said Wednesday. July 2009 is the highest selling July on record at the Greater Vancouver board. Sales last month also fell 24.1 per cent from June 2010, the board said.

"Home-sales activity in Greater Vancouver was quieter last month than most Julys over the past decade, with residential sales, prices, and the number of homes listed for sale trending downward in recent months," it said.

The benchmark price for all residential properties has fallen 2.8 per cent to $577,074 from the all-time high of $593,419 reached in April, the board said. Prices in July, however, remained 9.1 per cent higher than a year earlier.

The recent cooling translates into a buyer's market. "With the pace of home sales and listings easing off in our market, we've begun to see a levelling of home prices from the record highs seen in the spring, creating greater affordability," board president Jake Moldowan said.

The number of listings on the MLS last month fell 6.5 per cent from June 2010. Listings, however, are up 33 per cent from July 2009.

"It's currently taking home sellers . . . on average, 45 days to sell their property, which is a historically healthy time frame for both sides of a transaction," Moldowan said.

Year-over-year sales of detached properties fell 43.7 per cent in July, apartment sales dropped 42.7 per cent, and attached-property sales declined 53.5 per cent. pluke@theprovince.com twitter. com/provmoney
© Copyright (c) The Province

Real Estate Market Reference Center
source: www.theprovince.com

Lexington Housing Market Update

Monday, 02 August 2010 19:06
Are you interested in buying a new home here in Lexington any time soon?
Video Click Here
If so, you probably want to know how the real estate market is doing at the half-way point of 2010.

In 2009, the housing market in the United States faced one of it's toughest years...as many new homes simply just sat on the market for months with no buyers.
While that was the trend nationally...here at home in Lexington...that hasn't been the case.

"Interest rates have dropped and they are now at historical lows. They are low as they have been in fifty years and that's also bringing people into the market," says Mortgage Broker Bryan May

"We turned into a buyers market when things started going down hill. Inventory was up significantly and the people that are selling, have to sell most of the time, so they are kinda at the buyers mercy."

Holly Browning, who has been a realtor for many years says typically, when buying a home...it's the sellers market versus the buyers market...and with today's economy...if you're interested in buying that new dream home...your chances of getting one cheap...are pretty high.

"No matter how young or old you are. If you're in a stable position with your job and income, it's a good place to put your money," adds Browning

Browning admits with the world equestrian games headed to the bluegrass soon...that has helped the market locally as well

"'we've seen a lot of activity in the real estate with markets, with rentals but we're also had a few buyers that are coming here loving Lexington and buying some homes to come back to."

Loretta Fugate spent her Sunday afternoon house shopping for her sister who is planning to move Lexington.
Fugate say's she definitely keeps her eyes and ears open...on the up and down market

"when I see it going down, that terrifies me, so if the houses on my street," explains Fugate

SOT
"interest rates have dropped and they are now at historical lows. They are low as they have been in fifty years and that's also bringing people into the market."


Real Estate Market Reference Centersource: www.wtvq.com

Growth in Chinese manufacturing continues to slow

BEIJING (AP) - Expansion of Chinese manufacturing activity slowed for the third month in July, as production, new orders and purchasing prices all declined, a survey showed Sunday.

The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index, or PMI, fell to 51.2 in July from 52.1 in June. Numbers above 50 show manufacturing activity expanding.

The index, an indicator of future manufacturing trends, has remained above 50 for 17 straight months after slowing in late 2008 and early 2009. It was 53.9 in May and 55.7 in April.

Areas such as production, new orders and purchasing prices all declined, according to a summary of the survey posted on the federation's website. Meanwhile, the employment index was up.
The slowdown was expected given efforts to cool property prices by tightening credit, as well as a tapering off of government-backed stimulus spending on construction and other projects. Economic growth slowed to 10.3 percent over a year earlier in the second quarter, down from its blistering 11.9 percent first quarter pace.

The slowdown might weaken the global recovery if it cuts Chinese demand for imported iron ore, industrial machinery and other foreign goods.

"The foundation for investment and export growth is not steady enough. There is a possibility that the speed of growth in those areas could decline by a large margin," the summary quoted government analyst Zhang Liqun as saying.

However, Zhang predicted overall stable economic growth and expected growth for the whole year to be about 9.5 percent.
Real Estate Market Reference Centersource: