by Calculated Risk on 2/07/2023 07:48:00 PM
From Dodge Data Analytics: Dodge Momentum Index Dips in January
The Dodge Momentum Index (DMI), issued by Dodge Construction Network, fell 8.4% in January to 201.5 (2000=100) from the revised December reading of 220.0. In January, the commercial component of the DMI fell 10.0%, and the institutional component receded 4.7%.
“The Dodge Momentum Index weakened in January, after 10 consecutive months of gains. While planning activity slowed, the Index remains elevated, and the volume of projects remains steady,” stated Sarah Martin, associate director of forecasting for Dodge Construction Network. “After such strong growth in 2022, we expect the Index to work its way back towards historical norms this year, in tandem with weaker economic growth. Overall, levels of planning activity remained comparatively strong over the month — which bodes well for the construction sector.”
Weakness in commercial planning in January was broad-based, with office, warehouse, retail and hotel activity declining. Slower activity in education and amusement projects drove down the institutional portion of the Index, nullifying the impact of gains in healthcare and public planning over the month. On a year-over-year basis, the DMI remains 32% higher than in January 2022. The commercial component was up 40%, and the institutional component was 16% higher.
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The DMI is a monthly measure of the initial report for nonresidential building projects in planning, shown to lead construction spending for nonresidential buildings by a full year.
emphasis added
Click on graph for larger image.
This graph shows the Dodge Momentum Index since 2002. The index was at 201.5 in January, down from 220.0 in December.
According to Dodge, this index leads “construction spending for nonresidential buildings by a full year”. This index suggests a solid pickup in commercial real estate construction into 2023.
Simon Property Group’s (SPG – Free Report) fourth-quarter and full-year 2022 results are scheduled to be released on Feb 6 after the closing bell. The company’s quarterly results are likely to exhibit year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Indianapolis, IN-based retail real estate investment trust (REIT) delivered a surprise of 1.37% in terms of FFO per share. The quarterly results reflected healthy operating performance and growth in occupancy levels. The retail REIT behemoth also raised the 2022 FFO per share outlook based on the quarterly results.
In the last four quarters, the company beat the Zacks Consensus Estimate on each occasion, the average surprise being 3.05%. This is depicted in the graph below:
Factors at Play
Per a report from CBRE Group (CBRE – Free Report) , retail real estate markets remained robust in the fourth quarter, with resilient demand driving the retail availability rate to 4.9% after hitting a high of 6.6% in fourth-quarter 2020.
The core retail sales, excluding motor vehicles, gasoline and auto parts, climbed 7.1% from the prior-year period. The non-store retail sales, which include e-commerce, grew 11.3% year over year.
The retail asking rent improved 2.5% year over year for the second consecutive quarter to $22.78 per square foot in the fourth quarter. This was primarily driven by strong demand and limited new supply.
Retail space absorption came in at 12.7 million square feet for fourth-quarter 2022, marking the ninth consecutive quarter of positive retail absorption per the CBRE Group report.
Simon Property, too, is anticipated to have benefited from the above-mentioned factors.
The increase in consumers’ preference for in-person shopping experiences following the pandemic downtime has been benefiting retail REITs as retailers continue to rent out more physical store spaces to meet this growing demand. This is likely to have driven demand for SPG’s properties, aiding its fourth-quarter cashflows.
Simon Property’s adoption of an omni-channel strategy and successful tie-ups with premium retailers are likely to have paid off well. In November, SPG announced that Leap, the retail platform for modern brands, would open numerous stores at its properties. The move is expected to help many digitally native brands to strategically expand as omnichannel retailers.
Further, its efforts to explore the mixed-use development option, which has gained immense popularity in recent years, is anticipated to have enabled it to tap the growth opportunities in areas where people prefer to live, work and play. In November, Nobu Hospitality and Simon Property celebrated the opening of Nobu Hotel & Restaurant Atlanta at the mixed-use development — Phipps Plaza — in Buckhead.
The Zacks Consensus Estimate for fourth-quarter lease income is pegged at $1.26 billion, up from $1.23 billion reported in the year-ago quarter. The consensus mark for management fees and other revenues is $28.79 million, up 2.5% from the prior-year quarter’s reported figure. In addition, the consensus estimate for quarterly revenues is presently pegged at $1.37 billion, indicating an increase of 3.1% year over year.
On the acquisition front, in December 2022, Simon Property closed its earlier announced strategic partnership with Jamestown, wherein the former acquired a 50% interest in the latter from its founding partners. Through the partnership, SPG will be able to drive its future densification projects with the help of Jamestown’s platform, making the buyout a strategic fit.
However, increasing interest expenses might have been a deterrent for Simon Property during the quarter.
The Zacks Consensus Estimate for FFO per share has been unchanged over the past month at $3.14. Nonetheless, the figure indicates a rise of 1.6% year over year.
For 2022, Simon Property projected FFO per share in the range of $11.83-$11.88.
For the full year, the Zacks Consensus Estimate for FFO per share has been unchanged at $11.68 over the past month. The figure indicates a fall of 2.2% year over year on revenues of $5.24 billion.
Earning Whispers
Our proven model does not conclusively predict a surprise in terms of FFO per share for SPG this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that’s not the case here.
Earnings ESP: Simon Property has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SPG currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
Stocks That Warrant a Look
Here are some other stocks that are worth considering from the retail REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Federal Realty Investment Trust (FRT – Free Report) is scheduled to report quarterly figures on Feb 8. FRT has an Earnings ESP of +0.32% and a Zacks Rank of 3 currently.
Regency Centers (REG – Free Report) is slated to report quarterly numbers on Feb 9. REG has an Earnings ESP of +0.47% and carries a Zacks Rank of 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represent FFO — a widely used metric to gauge the performance of REITs.
ACRES Commercial (ACR – Free Report) has recently been on Zacks.com’s list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock’s performance in the near future.
Shares of this commercial real estate investment trust have returned +12.4% over the past month versus the Zacks S&P 500 composite’s +4.8% change. The Zacks REIT and Equity Trust industry, to which ACRES Commercial belongs, has gained 14.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company’s business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company’s future earnings over anything else. That’s because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock’s fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, ACRES Commercial is expected to post earnings of $0.45 per share, indicating a change of +104.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.03 points to a change of +2,160% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $1.86 indicates a change of +80.6% from what ACRES Commercial is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock’s price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, ACRES Commercial is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company’s forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company’s financial health, nothing happens as such if a business isn’t able to grow its revenues. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it’s important to know a company’s potential revenue growth.
For ACRES Commercial, the consensus sales estimate for the current quarter of $12.2 million indicates a year-over-year change of +2.6%. For the current and next fiscal years, $42.3 million and $50.5 million estimates indicate +7.2% and +19.4% changes, respectively.
Last Reported Results and Surprise History
ACRES Commercial reported revenues of $11.13 million in the last reported quarter, representing a year-over-year change of +17.8%. EPS of $0.40 for the same period compares with -$0.36 a year ago.
Compared to the Zacks Consensus Estimate of $10.6 million, the reported revenues represent a surprise of +4.96%. The EPS surprise was +29.03%.
Over the last four quarters, ACRES Commercial surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock’s valuation, no investment decision can be efficient. In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects.
Comparing the current value of a company’s valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
ACRES Commercial is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about ACRES Commercial. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Mid-America Apartment Communities, Inc. (MAA – Free Report) — commonly known as MAA — is slated to report fourth-quarter and full-year 2022 results on Feb 1 after market close. MAA’s quarterly results are likely to reflect growth in revenues and funds from operations (FFO) per share.
The Germantown, TN-based residential real estate investment trust (REIT) delivered a surprise of 4.78% in terms of FFO per share in the last reported quarter. This residential REIT’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio.
MAA has a decent surprise history. Over the trailing four quarters, MAA surpassed the Zacks Consensus Estimate on all occasions, the average being 2.50%. This is depicted in the chart below:
Let’s see how things have shaped up for the announcement.
Factors to Consider
For the U.S. apartment market, low consumer confidence and high inflation have taken a toll, with net demand for apartments ending in negative territory for calendar 2022, per a report from the real estate technology and analytics firm RealPage. Despite solid job growth and wage gains, there was weak demand for all types of housing.
Amid this soft demand, new-lease apartment rents fell in December for the fourth consecutive month, declining another 0.4%. The cumulative rent drop was around 1.6% since September. Also, the national apartment vacancy surged from a record seasonal low of 2.5% one year ago to 5.0% in December 2022.
However, MAA’s diversified Sunbelt portfolio is well-poised to benefit from the favorable fundamentals of this market. The pandemic accelerated employment shifts and a population inflow into the company’s markets as renters seek more business-friendly, lower-taxed and low-density cities. These favorable longer-term secular dynamic trends are increasing the desirability of its markets.
The high pricing of single-family ownership units continues to drive the demand for rental apartments. Amid this, MAA is well-poised to capture recovery in demand and leasing compared to expensive coastal markets. In the fourth quarter, MAA is expected to have experienced strong rent growth and stable occupancy, thereby driving revenue growth.
MAA also continues to implement its three internal investment programs — interior redevelopment, property repositioning projects and Smart Home installations. The programs are expected to have helped the company capture the upside potential in rent growth, generate accretive returns and boost earnings from its existing asset base.
The Zacks Consensus Estimate for quarterly revenues is pegged at $525.5 million, suggesting a 13.36% rise from the year-ago quarter’s reported figure. Same-store revenues are projected at $517.65 million, indicating an increase from the $495.38 million reported in the prior quarter and $444.39 million in the year-ago period.
The consensus estimate for physical occupancy is presently pegged at 95.7% for the fourth quarter, slightly lower than 95.8% in the prior quarter.
MAA projects the fourth-quarter 2022 core FFO per share in the band of $2.19-$2.35, with $2.27 at the midpoint.
Before the fourth-quarter earnings release, the company’s activities were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has been revised a cent upward to $2.28 in the past month. This suggests year-over-year growth of 20%.
This residential REIT estimates 2022 core FFO per share in the range of $8.37-$8.53, with a midpoint of $8.45. This is backed by a projection for same-store property revenue growth of 13.0-14.0%, same-store property operating expense growth between 7.0% and 7.5% and same-store NOI growth anticipated between 16.0% and 18.0%.
For the full year, the Zacks Consensus Estimate for core FFO per share is pegged at $8.46. The figure indicates a 20.7% increase year over year on 13.5% year-over-year growth in revenues to $2.02 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for MAA this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
MAA currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are three stocks from the broader REIT sector — First Industrial Realty Trust, Inc. (FR – Free Report) , STAG Industrial, Inc. (STAG – Free Report) and Gladstone Commercial Corporation (GOOD – Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
First Industrial Realty Trust is slated to report quarterly numbers on Feb 8. FR has an Earnings ESP of +7.65% and carries a Zacks Rank of 3 presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
STAG Industrial, scheduled to report quarterly numbers on Feb 15, has an Earnings ESP of +2.89% and carries a Zacks Rank of 2.
Gladstone Commercial Corporation is slated to report quarterly numbers on Feb 22. GOOD has an Earnings ESP of +5.13% and sports a Zacks Rank of 1 presently.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Omega Healthcare Investors, Inc. (OHI – Free Report) is slated to report fourth-quarter and full-year 2022 results on Feb 2 after the closing bell. The company’s quarterly results are likely to display a year-over-year fall in revenues and funds from operations (FFO) per share.
In the last reported quarter, this healthcare real estate investment trust reported adjusted FFO per share of 76 cents, in line with the Zacks Consensus Estimate. OHI’s top line declined 14.9% year over year on asset sales and operator restructurings. However, lower expenses in the quarter were a tailwind.
The company’s FFO per share surpassed the consensus mark in one of the trailing four quarters, met the same in one and missed it in the other two, with the average beat being 0.36%. This is depicted in the graph below.
Factors at Play
Omega Healthcare invests in the long-term healthcare industry with a particular focus on skilled nursing facilities (SNFs) and assisted living facilities (ALFs). Its properties are located in the United States and the United Kingdom and are operated by a diverse group of healthcare companies, primarily in a triple-net lease structure.
In recent quarters, the aftermath of COVID-19 has been adversely impacting both occupancy and staffing for several of the company’s operators. Per the November Investor Presentation, the company noted that expenses per patient day, although having eased out, remain elevated compared with January 2020, mainly due to higher staffing-related costs. This has led some operators to default on rent payments, and OHI’s exposure to troubled operators turned out to be a pressing concern.
In October 2022, Omega collected rent from operators representing around 91% of its third-quarter 2022 annualized contractual rent and mortgage obligations. Hence, the nonpayment of the rent by some operators is likely to have affected the company’s performance in the fourth quarter.
Moreover, with regards to the ongoing restructurings concerning Maplewood and LaVie, they were placed on a cash basis for revenue recognition during the quarter under preview. Consequently, OHI anticipates incurring a non-cash write-off of straight-line accounts receivable and lease inducements totaling $29.3 million and $58 million, respectively, which is likely to have resulted in lower rental income in fourth-quarter 2022.
The Zacks Consensus Estimate for fourth-quarter rental income is pegged at $166.6 million, down from $203.2 million in the prior quarter and $214.3 million in the year-ago period. The consensus mark for fourth-quarter revenues of $146.1 million indicates a 41.6% decline year over year.
Also, the company’s restructurings are expected to have led to a fall in EBITDA and funds available for distribution during the quarter. The near-term leverage, too, is likely to have been higher than the historical range.
Omega Healthcare’s activities during the December-quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has been revised 1.4% downward to 73 cents over the past month. The figure also implies a fall of 5.2% year over year.
For the full year, the Zacks Consensus Estimate for FFO per share has been revised marginally downward to $3.00 over the past month. Moreover, the figure indicates a 9.4% decrease year over year on revenues of $850.8 million.
Earnings Whispers
Our proven model does not conclusively predict an FFO beat for Omega Healthcare this time. The right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that is not the case here.
Earnings ESP: OHI has an Earnings ESP of -0.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: OHI currently carries a Zacks Rank of 5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Warrant a Look
Here are some stocks that are worth considering from the REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Highwoods Properties (HIW – Free Report) is slated to release fourth-quarter earnings on Feb 7. HIW has an Earnings ESP of +0.10% and a Zacks Rank #3 (Hold) at present.
Ventas (VTR – Free Report) is scheduled to report quarterly figures on Feb 9. VTR has an Earnings ESP of +0.15% and a Zacks Rank #3 currently.
Stag Industrial (STAG – Free Report) is slated to report quarterly numbers on Feb 15. STAG has an Earnings ESP of +2.89% and carries a Zacks Rank #2 (Buy) presently.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represent FFO — a widely used metric to gauge the performance of REITs.
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To help protect themselves from being taken advantage of by financial sales professionals, retirees should ask the following questions about the financial professional seeking to provide them with investment advice or sell them an investment product:
“Are you a fiduciary, and how are you registered?”
“This question is critical as advisors can be dually registered and operate as a broker AND a fiduciary, though they’ll still tell you they’re a fiduciary,” says Eric Presogna, Owner and CEO at One-Up Financial in Erie, Pennsylvania.
For over two decades now, the Securities and Exchange Commission (“SEC”) has allowed brokers to register as Investment Advisers and provide both types of services. Prospective clients often find this dual capacity confusing, but the difference is significant. SEC-Registered Investment Advisers must act in a fiduciary capacity, while brokers are under no similar obligation. Why is this distinction important?
“Advisors who possess a fiduciary duty to their clients are required to put their clients’ best interests above their own at all times,” says David Rosenstrock, Director and Founder of Wharton Wealth Planning in New York City. “Many people are surprised to find out that this obligation isn’t required of all advisors. In fact, most advisors aren’t required to act as a fiduciary in all their interactions with a client. Advisors who are not fiduciaries often follow the suitability standard, but that only requires that they give clients advice deemed ‘suitable’ for their situations; thus, it offers fewer protections/safeguards to clients. The term fiduciary is still not widely known and understood.”
If you’re not sure what “fiduciary” really means and it’s not clear what type of professional service your potential service provider plans to offer, there are other paths for you to take to make sure the provider is legally required to always act in your best interest. To determine this, you’ll need to dig a little deeper into the person’s certifications and licenses.
“Some red flags that an advisor doesn’t always act as a fiduciary include a Series 7 license and a Series 63 or 66 license,” says Rosenstrock. “If a financial advisor has a Series 7 license, that individual is allowed to collect commissions from the sale of investments, which means that professional doesn’t always act in a fiduciary capacity. A Series 63 or 66 is another license that a financial advisor needs to collect commissions on product sales.”
“How long have you been doing this, and what are your qualifications?”
Many advisors rely on word-of-mouth advertising because it entails an endorsement from the referrer. While this may sound ideal, it doesn’t mean you shouldn’t do your own due diligence. After all, just because someone is friendly doesn’t make that person competent.
“It is important for a retiree to understand the professional background and qualifications of the financial professional seeking to sell them an investment product,” says Garett Polanco, CIO at Independent Equity in Fort Worth, Texas. “This can help the retiree determine whether the professional is knowledgeable and competent in the field and whether they can be trusted to provide sound financial advice.”
If the professional is a Registered Investment Adviser, you can do your own research on the individual or the firm by going to the SEC’s website. For brokers, you’ll need to go to a different website.
“If the advisor is a broker, check the broker’s credentials at FINRA’s Broker Check website,” says Coconut Creek-based financial author Craig Kirsner. “Also, look at the broker’s website and search for the broker online. Does the broker seem to have a good reputation? If there are a lot of people with the same name as the broker, use quotation marks around the name to limit the search. Check the broker out with the Better Business Bureau. Also, go to the broker’s Google Maps location and see what the reviews are there.”
“Where will my money be held?”
Bernie Madoff got away with his scheme for so long because he not only invested the assets but he provided all the reporting on those assets. To maximize your safety, you’d prefer to have the custodian that holds your assets be a different firm, independent of the advisor’s firm.
“You should ask where the money will be held,” says Kirsner. “Make sure it’s held at a reputable firm or large, highly rated company. Make sure you will have access to see your funds at this firm and only write the check payable to that firm.”
“How do you get paid, and are there other costs I will be paying?”
Speaking of writing checks, never sign the dotted line until you know not only what the advisor is getting paid but what your out-of-pocket fees are for any products that the advisor may place you in. (Note: products can include mutual funds, insurance contracts, and anything other than stocks and bonds.)
“It is important for you to understand the costs involved in any investment product, including fees and commissions,” says Polanco. “This can help you determine whether the product is a good value and whether it aligns with your financial goals.”
Don’t be misled about mutual fund expense ratios. These are not out-of-pocket expenses and are already incorporated into the return data you see from the mutual fund company. It’s similar to a stock return which already includes the operating costs of that company. What matters are the transaction costs and holding fees, which are not part of the operating costs or expense ratio. These can add up and place more pressure on the performance of your investments.
“Most of the issues are related to cost, which creates a high hurdle rate for the underlying investments to clear before the investor makes decent money,” says Stephen Taddie, Partner at HoyleCohen, LLC in Phoenix. “By that I mean, if the cost of the product is 3% annually, the underlying investments need to make 7.50% for the investor to net 4.50%, which by comparison is currently available from a 10-year U.S. treasury bond. If the product is touted as being able to produce a 6-8% rate of return, then underlying investments need to produce 9-10% for that to happen. The follow-up questions with regard to investments would be focused on understanding how the investments will earn that rate in this environment. Often, the risk taken within the product is more than you would take on your own in individual securities.”
“What is your investment philosophy?”
Finally, and to continue the line of reasoning implied by Taddie, you need to explore the particular investment style practiced by the advisor you’re considering.
“Your adviser should go through all the key components of financial advice, such as how, when, where, and why to invest in what,” says Bruce Mohr, Senior Investment Advisor and Credit Consultant at Fair Credit in Decatur, Georgia. “A good investment strategy and a track record of sound investment management are requirements for a financial advisor. Your overall financial health depends heavily on your investments, so you should deal with an advisor who employs strategies you are at ease with. They should be able to properly describe their investment philosophy, plan, and guiding principles utilizing an evidence-based approach. For instance, I believe that diversification is important and that investing in the long term is best.”
If you invest in products instead of individual stocks and bonds, you’ll also want to make sure there are no restrictions, surrender fees, etc. or other repercussions should you decide to end the relationship with the advisor and liquidate the investments that the advisor has placed you in.
EQS-News: tokentus investment AG
/ Key word(s): Alliance
tokentus investment AG cooperates with Linqto, a platform that allows for early investments in potential IPOs of companies
26.01.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
tokentus investment AG cooperates with Linqto, a platform that allows for early investments in potential IPOs of companies
- tokentus already invested in Ripple Labs and PolySign via the SPV structure (Special Purpose Vehicle) provided by Linqto
- Upon successful IPO, tokentus will become a direct shareholder of the respective companies
Frankfurt am Main, 26 January 2023 – tokentus investment AG (“tokentus”, ISIN: DE000A3CN9R8; WKN: A3CN9R; symbol: 14D), headquartered in Frankfurt am Main, Germany, cooperates with Linqto Inc. (www.linqto.com), headquartered in San Jose, California (USA). Linqto is an investment management platform that offers accredited investors fast, low-cost and easy access to early investments in potential IPOs of companies via special SPV structures (special purpose vehicle as an investment vehicle). Following an analysis by Linqto, companies that have or are planning an IPO are presented on the Linqto platform and shares in the relevant SPV, which in turn holds shares in the specific company, are offered for sale. Among them, Robinhood, Impossible Foods and Coinbase were already some well-known companies.
As of January 2023, tokentus investment AG has already made two currently indirect investments through this structure with a USD 50,000 investment in PolySign and a USD 100,000 investment in Ripple Labs. PolySign says it operates a secure and scalable blockchain-enabled infrastructure for institutional providers to manage digital assets in the capital markets and payments sectors. Ripple Labs, according to the company, operates a global trading venue that enables banks and financial institutions to make cross-border payments in its proprietary cryptocurrency XRP securely in a fraction of the time and at a significantly lower cost than traditional payment systems.
In these transactions, tokentus is a shareholder of a Linqto SPV, which holds shares in the respective companies on behalf of tokentus and other shareholders quasi fiduciary. In the event of an IPO, these shares are registered and subsequently listed and are thus freely tradable. The SPV is dissolved at that time and tokentus as well as the other investors become direct shareholders of the respective company.
“For a very long time and intensively, we have been looking for a way to do early investments in potential IPOs of interesting blockchain companies, such as Ripple Labs and have found what we consider to be an ideal partner in Linqto. Linqto opens the way to interesting later-stage investments for us,” said Oliver Michel, CEO of tokentus investment AG.
Joe Endoso, Chief Operating Officer and Board Director of Linqto, added: “We are pleased to have found an experienced investor in tokentus to use Linqto and look forward to further collaboration with the entire tokentus team. It looks like we have a real win-win situation here.”
About tokentus investment AG
tokentus investment AG (ISIN: DE000A3CN9R8, WKN: A3CN9R; Ticker: 14D) is an investment company focusing on the blockchain market. The shares of tokentus investment AG are listed on the m:access trading segment (unofficial market) of the Munich stock exchange and traded on XETRA and other German stock exchanges.
With the help of a constantly growing network of co-investors tokentus acquires international financial investments, shares of companies with a business model that is directly connected with the blockchain technology and SPV structures. Thus shareholders of the tokentus investment AG are able to indirectly invest in a diversified, international portfolio in the pioneering blockchain market. Tokentus investment AG considers itself an investment pool and central access point for investors in the blockchain market. As a German public holding company tokentus has committed itself to transparency and regular communication with its investors. Tokentus investment AG invests in financial assets, equity and token investments, blockchain-focused venture capital funds and SPV structures.
For further information see: www.tokentus.com
Disclaimer
This publication is neither an offer to sell nor a solicitation to buy securities. The no-par value registered shares of tokentus investment AG (the “Shares”) may not be offered or sold outside the Federal Republic of Germany, in particular not in the United States or to or for the account or benefit of “U.S. persons” (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). The securities have already been sold.
Contact for queries
Oliver Michel
CEO der tokentus investment AG
Tel: +49 175 7222 351
contact@tokentus.com
www.tokentus.com
26.01.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
Item 1.01 Entry into a Material Definitive Agreement.
On
“Company”) investment in a student housing complex,
a direct, wholly-owned subsidiary of the Company (“ARF”) entered into guaranties
related to a
the Company has a membership interest. Pursuant to the Guaranty Agreement, dated
as of
the “Guarantors”) for the benefit of
“Lender”), the Guarantors provided limited (“bad boy”) guaranties to the Lender
pursuant to the
Drive East, LLC
Lender (“Loan Agreement”) until the earlier of the payment in full of the
indebtedness or the date of a sale of the property pursuant to a foreclosure of
the mortgage or deed or other transfer in lieu of foreclosure is accepted by the
Lender.
On
Agreement for the benefit of the Lender to guaranty the timely completion of the
project in accordance with the Loan Agreement, as well as a Carry Guaranty
Agreement, for the benefit of the Lender to guaranty the prompt and
unconditional payment by Borrower of all customary or necessary costs and
expenses incurred in connection with the operation, maintenance and management
of the property and an Environmental Indemnity Agreement jointly and severally
in favor of the Lender whereby the Guarantors serving as Indemnitors provided
environmental representations and warranties, covenants and indemnification
(collectively the “Guaranties”). The Guaranties include certain financial
covenants required of ARF, including required net worth and liquidity
requirements.
The foregoing description of the Guaranty Agreement, the Completion Guaranty
Agreement, the Carry Guaranty Agreement and the Environmental Indemnity
Agreement are only summaries, do not purport to be complete and are qualified in
their entirety by reference to the full text of such agreements, which are filed
as Exhibits 10.1, 10.2, 10.3 and 10.4 hereto and are incorporated herein by
reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. 10.1 Guaranty Agreement executedJanuary 24, 2023 byJason Pollack ,Frank Dellaglio andACRES Realty Funding, Inc. for the benefit ofOceanview Life and Annuity Company 10.2 Completion Guaranty Agreement executedJanuary 24, 2023 byJason Pollack ,Frank Dellaglio andACRES Realty Funding, Inc. for the benefit ofOceanview Life and Annuity Company 10.3 Carry Guaranty Agreement executedJanuary 24, 2023 byJason Pollack ,Frank Dellaglio andACRES Realty Funding, Inc. for the benefit ofOceanview Life and Annuity Company 10.4 Environmental Indemnity Agreement executedJanuary 24, 2023 byJason Pollack ,Frank Dellaglio andACRES Realty Funding, Inc. in favor ofOceanview Life and Annuity Company 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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© Edgar Online, source
EQS-News: tokentus investment AG
/ Key word(s): Investment
tokentus investment AG invests in the Web3 community activation platform Playground
25.01.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
tokentus investment AG invests in the Web3 community activation platform Playground
- Playground is the community activation platform for Web3
- tokentus invests USD 200,000 via a SAFE (Simple Agreement for Future Equity) with a conversion option into equity of Playground NY Inc. (“Playground”)
- Investment additionally entitles tokentus to acquire a limited amount of Ground tokens at a discount from Playground
- Strong investor base to support global expansion of Playground
- Synergy effects in portfolio companies of tokentus to be leveraged by the Playground investment
Frankfurt am Main, 25. January 2023 – tokentus investment AG (“tokentus”, ISIN: DE000A3CN9R8; WKN: A3CN9R; Code: 14D), headquartered in Frankfurt am Main, Germany, acquires a security convertible into equity of Playground NY Inc. (“Playground”), the developer of the Playground, based in New York State (USA) for USD 200,000.
Playground is the community activation platform for Web3. Through its community management tools, Playground enables creators to connect, co-create and co-own, ultimately empowering communities to build their own tokenized world and movements, according to the company.
Playground delivers a critical component to any blockchain project, especially in the B2C space. Specifically, Playground serves creators, artists, and brands, bringing their fans and members together to participate and play through physical and digital activations.
Playground’s partner ecosystem spans global media agencies and top blockchain funds including (a) Anomaly, a leading global marketing company that works with great brands and major S&P 500 companies worldwide, (b) Animoca Brands, invested in over 300 blockchain companies across gaming digital property rights to the world’s gamers and Internet users, thereby creating a more equitable digital framework contributing to the building of the open metaverse (c) Republic Crypto, who strategically advises crypto projects, and (d) Polygon Ventures whose blockchain supports some of the biggest players in Web3. Access and distribution through these ecosystems will help onboard communities globally, according to Playground.
“Communities are essential to the success of Web3. Building a community is one thing. But running them successfully in business is another. In the creation and management of such communities specifically in the blockchain space, Playground is, in our view, very well positioned technically and investor-wise,” said Oliver Michel, CEO of tokentus investment AG. “We see great growth potential for Playground, not least because of what we see as its experienced team and strong investor base. According to our assessment, there is already a great demand for such solutions from the entire crypto market but also from existing Web2 platform operators,” adds Benedikt Schulz, Investment Manager at tokentus. “Playground’s community management tool can also lead to great network effects and thus further growth for some of our portfolio companies,” Mona Tiesler, Investment Manager at tokentus, adds.
About tokentus investment AG
tokentus investment AG (ISIN: DE000A3CN9R8, WKN: A3CN9R; Ticker: 14D) is an investment company focusing on the blockchain market. The shares of tokentus investment AG are listed on the m:access trading segment (unofficial market) of the Munich stock exchange and traded on XETRA and other German stock exchanges.
With the help of a constantly growing network of co-investors tokentus acquires international financial investments, shares of companies with a business model that is directly connected with the blockchain technology and SPV structures. Thus shareholders of the tokentus investment AG are able to indirectly invest in a diversified, international portfolio in the pioneering blockchain market. Tokentus investment AG considers itself an investment pool and central access point for investors in the blockchain market. As a German public holding company tokentus has committed itself to transparency and regular communication with its investors. Tokentus investment AG invests in financial assets, equity and token investments, blockchain-focused venture capital funds and SPV structures.
For further information see: www.tokentus.com
Disclaimer
This publication is neither an offer to sell nor a solicitation to buy securities. The no-par value registered shares of tokentus investment AG (the “Shares”) may not be offered or sold outside the Federal Republic of Germany, in particular not in the United States or to or for the account or benefit of “U.S. persons” (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). The securities have already been sold.
Contact for queries
Oliver Michel
CEO der tokentus investment AG
Tel: +49 175 7222 351
contact@tokentus.com
www.tokentus.com
25.01.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
Turmoil at trophy properties in London and Frankfurt offers a glimpse of the damage awaiting European commercial property investors as they face the sharpest reversal on record.
From a fraught refinancing process for an office building in the City of London to the strained sale of the Commerzbank Tower in Germany’s financial hub, investors are scrambling to find ways to bridge financing gaps as lending markets seize up from rapidly rising interest rates.
The reality check will start to hit in the coming weeks as lenders across Europe get results of year-end appraisals. Hefty declines in valuations threaten to cause breaches of loan covenants, triggering emergency funding measures from forced sales to pumping in fresh cash.
“Europe is going to go through the great unwind of 10 years of easy money,” said Skardon Baker, a partner at private equity firm Apollo Global Management.
“The amount of distress and dislocation is off the spectrum.”
Loans, bonds, and other debt totaling about €1.9 trillion — nearly the size of the Italian economy — are secured against commercial property or extended to landlords in Europe and the UK, according to the European Banking Authority, a survey by Bayes Business School and data compiled by Bloomberg.
Roughly 20% of that, or about €390bn, will mature this year, and the looming crunch marks the first real test of regulations designed after the global financial crisis to contain real estate lending risks. Those rules could end up making a correction steeper and more abrupt.
“I think the revaluation will happen more quickly than in the past,” said John O’Driscoll, head of the real assets business of French insurer Axa’s investment management unit.
Europe’s lenders will be prodded by the new regulations to act more aggressively on bad loans.
They’re also in better shape than during the last real estate crisis more than a decade ago, so could be less inclined to allow issues to fester. That puts the burden on borrowers.
Under new rules on non-performing loans, lenders will have to provision for expected (rather than accrued) losses. That means they have less incentive to sit tight and hope asset values recover.
“The year-end valuations done in the first quarter will be key,” said Ravi Stickney, managing partner and chief investment officer for real estate at Cheyne Capital, an alternative-investment fund manager that raised £2.5bn for real estate lending last year.
“The question mark is over what the banks actually do.”
So far valuations haven’t declined enough so that senior debt — the loans generally held by banks — are underwater, but that could soon change.
UK commercial properties valued by CBRE fell by 13% last year. The decline accelerated in the second half, with the broker registering a 3% fall in December alone.