Good afternoon, investors. In today’s real estate news- we’ll take a look at the Government Accountability Office’s attempt to create safer leasing practices to both foreign and domestic tenants, as well as the proposal to free Fannie Mae and Freddie Mac from U.S. control.
Why Investors Remained Buoyant on: Apollo Commercial Real Estate Finance, Inc. (ARI), BB&T Corporation (BBT)
In-depth studies by both investors and traders shines light on the attractiveness of Apollo Commercial Real Estate Finance, Inc. and BB&T. Whose price-to-sales ratios of 7.19 and 3.23 are attractively lower than their industry’s average.
An independent review by the Government Accountability Office (GAO) has recently brought to light the leasing practices of high-security tenants in foreign-owned buildings by the General Services Administration (GSA). In fact, under current law the GSA is only required to determine if a prospective lessor is a ‘responsible party,’ which typically only focuses on the lessor’s financial ability to perform.
With a U-6 Unemployment rate that has fallen to a low of 8.4 percent since 2007, concerns continue to rise with regards to senior housing and care. A continuously growing labor force and low jobless rates will continue to make it difficult to attract and retain qualified staff.
A Bloomberg proposal for freeing Fannie Mae and Freddie Mac from U.S. control is facing criticism from investors who fear that doing so would ruin the mortgage-bond market. The proposal includes limiting the amount of federal money available to offset Fannie and Freddie loses to $150 billion.