VanEck Office and Commercial REIT ETF (DESK) Dividend History

Company News

• Goldman Sachs: The Worst For Commercial Real Estate Market May Be Over, But 'It Is Likely To Take Longer To Inflect Positive'

  The worst may be over for commercial real estate (CRE) assets, yet a full recovery is still some distance away, according to a recent report from Goldman Sachs. The analysis, shared by analyst Caitlin Burrows on Friday, indicates that while the annual decline in CRE transaction volumes has likely bottomed out, significant challenges remain for a meaningful country-wide rebound, though some cities are exceptions. CRE Market Has Bottomed, According To Goldman Sachs’s Burrows Goldman Sachs notes that leading indicators suggest the CRE market has seen the worst of its downturn. Drawing comparisons to the Global Financial Crisis (GFC), Burrows explained that it took eight quarters of year-over-year declines in transaction volumes before the market saw a positive shift in the ninth quarter. Currently, the CRE market has experienced eight quarters of declines, starting from the third quarter of 2022. There have been some optimistic signs from leading indicators. Goldman Sachs highlighted that the OECD's U.S. Composite Business Confidence Index, which leads U.S. office leasing volumes by ...Full story available on Benzinga.com

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• 10 Real Estate Stocks Move On Thursday: Fed Rate Cut Possibility Sparks Rally For Troubled Sector

  The Federal Reserve’s indication of upcoming interest rate cuts injected optimism into the real estate sector, particularly benefiting stocks under pressure due to exposure to the office industry or elevated debt levels. A Shift Towards Speculation Thursday’s session suggests the rally has been more pronounced among real estate companies with higher debt levels This shift may signify a growing investor inclination towards speculative stocks within the real estate sector, banking on the premise that forthcoming rate cuts could provide a much-needed respite for real estate investment trusts (REITs) grappling with significant debt burdens. The Fed’s March dot plot hints at three rate cuts in 2024, with a further three anticipated the following year. This strategic direction is coupled with an upgraded growth ...Full story available on Benzinga.com

  Benzinga

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• Commercial Real Estate Grapples With $1 Trillion Refinancing Tsunami In 2024, Over $200 Billion In Office Debt

  A staggering $929 billion of commercial real estate (CRE) mortgages are on the brink of maturity in 2024, representing nearly a fifth of the sector’s overall $4.7 trillion debt, data from Goldman Sachs revealed Wednesday. This critical insight comes at a time when the CRE debt market grapples with double-digit interest rates, exceeding 12%, complicating refinancing efforts for industry players. The big question that is looming: Will the CRE sector weather the storm, or will the ticking debt time bomb detonate widespread financial spillovers? 2023: A Year of Dwindling Transactions and Rising Delinquencies The U.S. CRE market’s transaction volumes have plummeted, with January witnessing an 11% year-over-year descent, culminating in an approximate $23 billion. This is merely the tip of the iceberg. The full-year data for 2023 paints a dire picture, showcasing a staggering 50% tumble from the previous year. The industries hit hardest? Office and industrial leasing, shrinking by 25% and 28% year-over-year, respectively. “U.S. CRE transaction market continues to be muted, primarily driven by elevated interest rates, limited ...Full story available on Benzinga.com

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• Office Conversion Crisis: Prices Must Be Cut In Half For Residential Shift, Says Goldman Sachs

  The listing prices of struggling office properties remain prohibitively high and must fall by nearly half to make their conversion into multifamily homes economically viable. Those stark findings came from Goldman Sachs economists Elsie Peng and Vinay Viswanathan, who shed light on the deep impact of the shift toward hybrid work models, which has significantly reduced the demand for office space. “The office vacancy rate increased by 4pp over the last three years to 13.5%, the highest level since 2000,” Goldman Sachs noted, forecasting a further increase to 18% over the next decade. This structural decline has raised questions about the future of these spaces, especially in light of the ongoing residential housing shortage in the U.S. A Closer Look At Office Viability Goldman Sachs’ analysis identifies approximately 4% of U.S. office ...Full story available on Benzinga.com

  Benzinga
• 'The Greatest Real Estate Crisis Since The Financial Crisis': Office Property Troubles Spread To Europe

  Munich-based Deutsche Pfandbriefbank AG, or PBB, experienced a dramatic drop in its market value this week after it decided to ramp up its risk provisioning for potential losses in its loan portfolio tied to commercial properties. The move reflects growing concerns over the sector’s exposure and ongoing upheaval within the regional banking system. Shares of PBB, which specializes in commercial real estate finance with over 150 years of history, were down by more than 16.6% at last check Wednesday, Feb. 7. Its subordinated bonds mirror this sharp decline. The company’s risk provisioning for the year 2023 is expected to total between €210 million and €215 million. This substantial financial set-aside is in response to the “persistent weakness of the real estate markets,” according to the bank. ...Full story available on Benzinga.com

  Benzinga

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