Chasing the Yield
Investing for income through dividends and distributions
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Arbor Realty Trust (ABR) forecloses on Applesway Investment Group’s Texas apartments
The rapid rise in interest rates are pummeling real estate investment companies with adjustable rate loans. In Applesway’s case, at one property, the interest rate on the loan skyrocketed from 3.4% to about 8%. Two of their properties were also heavily leveraged with 80% debt. Arbor Realty Trust’s stock is down around 47% from a…
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Exxon in talks to buy Pioneer Natural Resources
Discussions between the two companies about a potential deal have been informal, the people said. But after posting record profits in 2022, Exxon is flush with cash and, according to people familiar with the company’s plans, has been exploring options that could reshape a swath of the U.S. oil and gas industry while pushing Exxon deeper…
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Apartments are the 2nd worst performing sector of real estate behind offices over the past year
Rising interest rates are taking the air out of bubbly property valuations. Apartment prices are down 21% over the past year, according to the Green Street Commercial Property Price Index. This makes them the second-worst performing category of real estate after offices, which have lost 25%. Institutional investors tend to own fewer individual family homes, where…
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Why almost all publicly traded banks are saddled with declining loan values
It’s a simple answer. Rising interest rates. Loans made when rates were low are much harder to sell than loans made at today’s rates. It’s a similar problem to what happened with Silicon Valley Bank and the government treasuries they held. This problem was created by virtually free money for almost a decade (near zero…
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After five years of exploration Exxon (XOM) abandons drilling off the coast of Brazil
After failing for the third time to find commercially viable amounts of crude there last year, the Texas oil giant has shifted geologists and engineers from working on the offshore acreage it began snapping up with partners for $4 billion in 2017 to other countries, including Guyana, Angola and Canada, these people said. Exxon hasn’t…
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Johnson & Johnson proposes $9 billion settlement in talc case
As an investor of J&J I would like to see this approved and get the company past this. Johnson & Johnson has proposed paying at least $8.9 billion to thousands of people who sued the company alleging that their use of J&J’s talc-containing powders caused cancer, in what would be one of the biggest product-liability settlements ever.…