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“Mirror, Mirror on the Wall; Who’s the Best Performing REIT Sector of All?”

According to an analysis by  REITCafe, multifamily REITs have “thrived,” helped by Echo Boomers among the various age cohorts. REITCafe is an on-line information service dedicated to providing investors and other participants in the REIT space with timely REIT research, data, and commentary.

Year-to-date through September 14th, the multifamily sector gained 16.4 percent as compared to 2.0 percent for the overall FTSE All Equity REIT Index. The 16 multifamily REITs comprise 17+/- percent of the value of the overall index.

Monday’s Numbers

The Trepp LLC survey showed spreads continuing at current levels, reflecting a “wait and see” attitude. Deals are getting done at slightly wider spreads as market participants wait out the impact of the Euro-credit crises on U.S, capital marekets.

Asking Spreads over U.S. Treasury Bonds in Basis Points

(10-year Commercial and Multifamily Mortgage Loans with 50% to 59% Loan-to-Value Ratios)

12/31/09

12/31/10

9/9/11

Office

342

214

220

Retail

326

207

212

Multifamily

318

188

210

Industrial

333

201

214

Average Asking Spread

330

203

207

10-Year Treasury

3.83%

3.29%

1.92%

We expect the Cushman & Wakefield Sonnenblick-Goldman Survey will be updated during the upcoming week.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage

Spreads For 5 Year Commercial Real Estate Mortgages

12/16/10

3/31/11

7/28/11

8/11/11

8/24/11

Multifamily – Non-Agency

+270

+245

+250

+255

+265

Multifamily – Agency

+280

+250

+240

+265

+250

Regional Mall

+280

+260

+280

+290

+290

Grocery Anchored

+280

+260

+270

+285

+285

Strip and Power Centers

 

 

+290

+300

+300

Multi-Tenant Industrial

+270

+265

+275

+295

+285

CBD Office

+280

+260

+275

+290

+290

Suburban Office

+300

+270

+295

+300

+300

Full-Service Hotel

+320

+300

+230

+320

+320

Limited-Service Hotel

+400

+325

+320

+340

+340

5-Year Treasury

2.60%

2.23%

1.49%

0.97%

0.96%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage

Spreads For 10 Year Commercial Real Estate Mortgages

12/1610

3/31/11

7/28/11

8/11/11

8/24/11

Multifamily – Non-Agency

+190

+180

+195

+240

+240

Multifamily – Agency

+200

+185

+190

+245

+230

Regional Mall

+175

+180

+205

+240

+255

Grocery Anchor

+190

+185

+195

+230

+250

Strip and Power Centers

 

 

+210

+250

+260

Multi-Tenant Industrial

+190

+190

+230

+240

+250

CBD Office

+180

+180

+225

+240

+255

Suburban Office

+190

+190

+235

+260

+260

Full-Service Hotel

+290

+230

+250

+275

+275

Limited-Service Hotel

+330

+260

+270

+295

+280

10-Year Treasury

3.47%

3.45%

2.97%

2.23%

2.16%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Floating-Rate Commercial Mortgage

Spreads For 3 – 5 Commercial Real Estate Year Mortgages

12/16/10

3/31/11

8/11/11

7/28/11

824/11

Multifamily – Non-Agency

+250-300

+225-325

+220-260

+200-250

+220-260

Multifamily- Agency

+300

+250-310

+230-270

+220-260

+230-270

Regional Mall

+275-300

+225-300

+220-270

+205-270

+220-270

Grocery Anchored

+275-300

+225-300

+210-275

+205-275

+210-275

Strip and Power Centers

 

 

+235-300

+225-300

+235-300

Multi-Tenant Industrial

+250-350

+250-350

+250-325

+230-325

+250-325

CBD Office

+225-300

+225-300

+235-300

+225-300

+235-300

Suburban Office

+250-350

+275-350

+265-325

+250-325

+265-325

Full-Service Hotel

+300-450

+350-450

+350-450

+350-450

+350-450

Limited-Service Hotel

+450-600

+400-500

+400-500

+400-500

+400-500

1-Month LIBOR

0.26%

0.22%

0.21%

0.19%

0.22%

3-Month LIBOR

0.30%

0.28%

0.29%

0.25%

0.31%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets
DJIA (1): -0.59%
S & P 500 (2):-3.31%
NASDAQ (3): -1.15%
Russell 2000 (4):-8.85%
MSCI U.S. REIT (5):+2.45%
_____
 (1) Dow Jones Industrial Average. (2) Standard & Poor’s 500 Stock Index. (3) NASD Composite Index.(4) Small Capitalization segment of U.S. equity universe. (5) Morgan Stanley REIT Index.

U.S. Treasury Yields

12/31/10

9/17/2011

3-Month

0.12%

0.00%

6-Month

0.18%

0.02%

2 Year

0.59%

0.17%

5 Year

2.01%

0.91%

10 Year

3.29%

2.05%