Post by
Northforce13 on Nov 30, 2024 4:03pm
Irritation well founded
Exited recently in part due to HR sector rotation strategy (office into ind/mf) in an industry (real estate) that is difficulty (lengthy) to rotate in.
By the time a multi year rotation strategy approaches completion, problems in the exited/sell at the bottom bottom sectors (office) possibly see light at the end of the tunnel. While the well performing buy/expand (multi fam/ind) sector starts to see problems coming down the pipe.
Over time, this = sell low buy high.
There is thought that this is to have a portfolio of well perceived properties, thereby easier to finance at superior rates.
I keep traversing articles such as that below, recently for industrial, increasingly for multi family:
"However, the real story here is in the apartment, or multifamily, sector. Seen in Figure 1, the distress rate for apartments touched 16.4 percent in August. An astonishing number, indicating that one in six apartment bridge loans were distressed. "
https://www.zerohedge.com/markets/commercial-real-estate-bond-distress-reaches-record-high
Hopefully everything will work out ok for HR, and if there are problems with multifamily/industrial, such will not be severe.
GLTA
Comment by
garyreins on Nov 30, 2024 7:37pm
HR trades at a valuation that is already distressed in my view. The team at HR reit is supposedly trying to go into higher growth markets in landtower, so if they are seeing the same things you are maybe they pivot? Why dont you email investor relations about your concerns and get back