Real eState

Warning on U.S. commercial real estate drags German bank shares lower – MarketWatch

Published

12 months ago

November 8, 2023

Shares of a German lender fell as much as 14% after a profit warning due to the struggling commercial real estate market in the U.S.

Deutsche Pfandbriefbank shares
PBB,
-11.42%
slumped as the German lender late on Tuesday said it would increase its risk provisions due to “persistent weakness in the commercial real estate market.” It now sees pretax profits for the year between €90 million ($96 million) and €110 million, versus its guidance at the beginning of the year for a pretax profit between €170 million and €200 million. The bank, informally called PBB, also cancelled its special dividend.

In a presentation, Deutsche Pfandbriefbank said structural changes in locations and preferences were leading some tenants to avoid central business districts. “At time of origination, all U.S. office properties financed by PBB were in A-locations – now, ~5-10% are considered B-locations,” the bank said. However, it also said about 80% of the market correction is assumed to have happened. “Many ex-prime locations are likely to achieve prime status again in expected market recovery,” the bank said.

The property values of the non-performing loans it has have dropped 41% on average, the bank said, and even those of its performing loans fell 24%. At the end of September, 63% of its U.S. portfolio was in New York, with another 12% in Chicago, 8% in Washington and 5% in San Francisco.

PBB wasn’t the only bank struggling — ABN Amro shares
NL:ABN
slumped 8% as the Dutch lender said its net interest income rose a weaker-than-forecast 20% due in part to a deposit migration to higher-yielding products. Its net interest income of €1.53 billion lagged the Visible Alpha-compiled consensus of €1.61 billion.

The broader European stock market moves were muted, with a small rise for the U.K. FTSE 100
UK:UKX
and a slight decline for the German DAX
DX:DAX
and French CAC 40
FR:PX1.
U.S. stock futures were mixed.

Other movers of note: Ahold Delhaize shares
AD,
-8.25%
slumped 7% as the owner of Stop & Shop reported a weaker-than-forecast third-quarter profit.

Marks & Spencer shares
MKS,
+8.66%
rallied 10% as the U.K. retailer resumed dividends — albeit to just 1 pence a share — after its first half adjusted pretax profit rose 75%.

ITV shares
ITV,
-6.28%
lost 6% as largest U.K. commercial television broadcaster said its total advertising revenue for the year is expected to fall by 8%, compared to the 6.5% decline expected by analysts.

Adblock test (Why?)

Source link

Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

Source link

Real eState

Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

Source link

Real eState

B.C. voters face atmospheric river with heavy rain, high winds on election day

Published

3 weeks ago

October 17, 2024

Anne Joseph

VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.

Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.

The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.

Wednesday was the last day for advance voting, which started on Oct. 10.

More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.

Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.

An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.

This report by The Canadian Press was first published Oct. 17, 2024.

Source link