The apartment sector led the way in the drop of commercial mortgage-backed securities delinquencies in April, according to Fitch Ratings. It reported that in general CMBS delinquencies dropped to their lowest level in five years. Multifamily delinquencies dropped from 8.91% in March to 8.38% in April. The office sector’s delinquency rate fell to 8.39% in April, from 8.5% in March.
A proposed converged lease-accounting standard introduced by the Financial Accounting Standards Board and the International Accounting Standards Board would require companies to add the value of their lease obligations to their balance sheets. The proposed standard would set up a two-track system in which the costs of leasing real estate would be recognized evenly over the term of the lease, while costs of leasing other items would be more front-loaded. Critics said the standard would increase debt held on companies' balance sheets by hundreds of billions of dollars.
General Growth Properties sold its half stake in a retail center in Las Vegas, netting $410 million from the transaction. The 774,000-square-foot property is the Grand Canal Shoppes. GGP will continue to handle its leasing and management.
The Empire State Realty Trust is closer to becoming a reality with 99.3% of the investors having voted for it, according to a regulatory filing. The REIT would hold more than 18 properties including the Empire State building.