Fitch Ratings reported Monday that commercial lenders extended more loans in November, prompting a drop in delinquencies. Collateralized debt delinquencies fell from 3.13% in October to 2.8% last month.
As Ohio-based Developers Diversified Realty announced Monday that it could not close an $890 million sale as expected this month because of tight credit, General Growth Properties is negotiating with banks for an extension to keep from filing bankruptcy. General Growth is late on its payment of a $900 million bank loan.
The Internal Revenue Service issued guidance allowing REITs to enable their shareholders to receive dividends in a combination of REIT stock and cash, with the cash portion comprising no less than 10% of the total dividend. The measure will help REITs conserve cash in a credit-starved environment.
Cedar Shopping Centers reached an agreement with lenders to extend the date by which it needs to repay its $300 million secured revolving credit facility. The new due date of the facility, which is expandable to $400 million, is January 2010.
Centro Properties Group reached an agreement in principle with its banks to a two-year extension of its more than $5 billion of debt. Had Centro failed to reach a deal, it likely would have fallen into receivership.