The US Office commercial real estate (CRE) mess is causing a global real estate shakeout, with plunging office values and rising borrowing costs affecting investors and banks worldwide. New York Community Bank has dramatically reduced its dividend to 5 cents and increased its provision for credit losses to $552 million, up from $62 million in Q3, indicating possible supervisory intervention. The bank is also reaching out to investors for capital to support a large residential mortgage portfolio as it grapples with the fallout. The broader contagion has spread to Japan, Canada, and Europe, with significant losses impacting global investors. New York Community Bancorp's rent-controlled multi-family loan portfolio is under particular stress due to New York City's stringent 2019 rent rules and inflation.
The elephant in the room at $NYCB is the massive rent controlled multi-family loan portfolio. Due to NYC’s Argentinian 2019 rent rules, the value of many of these properties are now under great stress, particularly in an inflationary environment. 1/2 https://t.co/9MAAX0DYJs
New York Community Bancorp has been reaching out to investors for capital to finance a large portfolio of residential mortgages as pressures on the regional lender mount, according to people with knowledge of the matter. https://t.co/Nq09XXSzVB
The troubles in the US commercial property market, which have already hit banks in New York and Japan, are now moving to Europe https://t.co/TPKmiqqpmv via @business
US Commercial Real Estate Contagion Is Now Moving to Europe https://t.co/Ke8TLkiwX0
"US Commercial Real Estate Contagion Is Now Moving to Europe" https://t.co/8NShkkYSE4 Don't worry... Yellen has assured us that "the regulators" have it contained. Keep buying stocks at all-time highs!
"US Commercial Real Estate Contagion Is Now Moving to Europe" 👀 https://t.co/IgkxUrw2qG https://t.co/wjEper5JV0
The troubles in the US commercial property market (which have already hit banks in New York and Japan) moved to Europe this week, elevating fears about broader contagion https://t.co/NMqNMt6ICQ via @gmorpurgo @tasosvos @ncallanan https://t.co/TIIHKchraJ
1 New York Community Bank reduced their dividend to 5 cents and significantly increased their provision for credit losses to $552 million (from $62 million Q3). Historically, dramatic declines in dividends and significant increases in provisions indicate supervisory intervention
The troubles in the US commercial property market, which have already hit banks in New York and Japan, is now moving to Europe https://t.co/fWUGuTJrHq
Plunging office values and rising borrowing costs have thrust this massive asset manager into the center of a global real estate shakeout https://t.co/bST8EDIhC3
US Office CRE Mess Is Spread Far and Wide across Investors & Banks Globally. US Banks Eat only a Portion of the Losses. Japanese, Canadian, and European banks started to confess. And for over a year, huge losses have hit investors, not banks https://t.co/rFPImdsGUY https://t.co/YSGIbYj6dz