Latest news with #Starwood
Yahoo
6 days ago
- Business
- Yahoo
Wall Street's $13B Signal: The Real Estate Freeze Might Finally Be Melting
Brookfield Asset Management (NYSE:BAM) is back in selling modeand in a big way. After years of sluggish activity, the firm has already moved $13 billion worth of properties across the U.S., Spain, and Australia in 2025, compared to just $2 billion during the same period last year. These aren't one-off disposals either: deals include everything from a retirement housing business in Australia to student housing in Spain, and a $2.2 billion sale of Fundamental Income Properties to Starwood. CEO Lowell Baron, who took over last month, said the market is edging back toward more normalized deal flow after a painful drought triggered by higher rates and mismatched expectations between buyers and sellers. Warning! GuruFocus has detected 5 Warning Sign with BAM. Why does this matter? Because for years, real estate managers have been stuck in limbounable to sell assets, return capital, or raise new funds. That's started to shift. Brookfield raised $5.9 billion in the first quarter alone for its flagship real estate fund, which now totals $16 billion. According to Baron, one major reason investors were holding back was because they hadn't seen any distributions. Now that the firm is finally returning capital, it could grease the wheels and restart the fundraising cyclejust when most managers need it most. U.S. commercial real estate investment also rose 14% in Q1 year-over-year, hinting that the worst may be behind us. But this isn't a rising tide lifting all boats. Demand is rebounding for data centers, housing, and logistics assets, while older office buildings still face elevated vacancy and distressed loan restructurings. Brookfield itself defaulted on office loans in Los Angeles and restructured debt on London's CityPoint tower. And yetit's also doubling down on select opportunities. After making contrarian bets on European offices post-pandemic, the firm is now eyeing supply shortages in high-end urban markets. We still see that bifurcation, Baron noted, adding that the buying window remains open as the backlog of distress slowly plays out. For now, capital is coming backbut only for the strongest stories. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Wall Street's $13B Signal: The Real Estate Freeze Might Finally Be Melting
Brookfield Asset Management (NYSE:BAM) is back in selling modeand in a big way. After years of sluggish activity, the firm has already moved $13 billion worth of properties across the U.S., Spain, and Australia in 2025, compared to just $2 billion during the same period last year. These aren't one-off disposals either: deals include everything from a retirement housing business in Australia to student housing in Spain, and a $2.2 billion sale of Fundamental Income Properties to Starwood. CEO Lowell Baron, who took over last month, said the market is edging back toward more normalized deal flow after a painful drought triggered by higher rates and mismatched expectations between buyers and sellers. Warning! GuruFocus has detected 5 Warning Sign with BAM. Why does this matter? Because for years, real estate managers have been stuck in limbounable to sell assets, return capital, or raise new funds. That's started to shift. Brookfield raised $5.9 billion in the first quarter alone for its flagship real estate fund, which now totals $16 billion. According to Baron, one major reason investors were holding back was because they hadn't seen any distributions. Now that the firm is finally returning capital, it could grease the wheels and restart the fundraising cyclejust when most managers need it most. U.S. commercial real estate investment also rose 14% in Q1 year-over-year, hinting that the worst may be behind us. But this isn't a rising tide lifting all boats. Demand is rebounding for data centers, housing, and logistics assets, while older office buildings still face elevated vacancy and distressed loan restructurings. Brookfield itself defaulted on office loans in Los Angeles and restructured debt on London's CityPoint tower. And yetit's also doubling down on select opportunities. After making contrarian bets on European offices post-pandemic, the firm is now eyeing supply shortages in high-end urban markets. We still see that bifurcation, Baron noted, adding that the buying window remains open as the backlog of distress slowly plays out. For now, capital is coming backbut only for the strongest stories. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Why Starwood Property Trust (STWD) Shares Are Sliding Today
What Happened? Shares of commercial real estate lender Starwood Property Trust (NYSE:STWD) fell 4.5% in the afternoon session after the company priced a public offering of 25.5 million shares of its common stock. The offering is expected to raise approximately $508 million in gross proceeds, which could increase to around $584 million if the underwriters exercise their option to purchase an additional 3.8 million shares. This move often leads to a temporary drop in a stock's price because the issuance of new shares can dilute the ownership stake of existing shareholders. Starwood intends to use the net proceeds to partially fund its recently announced $2.2 billion acquisition of Fundamental Income Properties, a net lease real estate platform. The remainder of the acquisition will be funded through a combination of cash and debt. While the acquisition is expected to be accretive to distributable earnings, the immediate impact of the stock offering is shareholder dilution. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Starwood Property Trust? Access our full analysis report here, it's free. What Is The Market Telling Us Starwood Property Trust's shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. Starwood Property Trust is up 3.5% since the beginning of the year, and at $19.72 per share, it is trading close to its 52-week high of $21.11 from September 2024. Investors who bought $1,000 worth of Starwood Property Trust's shares 5 years ago would now be looking at an investment worth $1,342. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Business Times
16-07-2025
- Business
- Business Times
Starwood strikes US$2.2 billion real estate deal with Brookfield
[NEW YORK] Starwood Property Trust agreed to acquire Fundamental Income Properties for US$2.2 billion as chief executive officer Barry Sternlicht aims to further diversify the company's revenue. It's acquiring Fundamental's operating platform and real estate portfolio from Brookfield Asset Management, according to a statement on Wednesday (Jul 16). The deal includes 12 million square feet (1.11 million square metres) of space across 467 properties, with tenants spanning food production, auto services and retail industries. Fundamental specialises in net lease real estate investments, in which tenants pay property expenses such as taxes, insurance and maintenance in addition to rent. The model can generate steady income while limiting management duties. 'The acquisition of Fundamental marks the next evolution, but not the last, of our platform,' Sternlicht said in the statement. 'While we have strong experience in the net lease sector, the scale and infrastructure of Fundamental provide us with the opportunity to significantly grow in this attractive asset class using our combined expertise.' Starwood will assume Fundmental's existing financing facilities of US$1.3 billion when the transaction is completed, according to the statement. That's expected to happen later this month. Shares of Starwood slid 3.3 per cent to US$20.16 in extended trading at 4.38 pm in New York. The stock had gained 10 per cent this year through the close of regular trading. BLOOMBERG
Skift
16-07-2025
- Business
- Skift
Marriott's CFO Leeny Oberg to Retire, C-Suite Transition Announced
With Leeny Oberg retiring after 26 years with the company, Marriott is leaning on internal veterans to maintain strategic momentum without rocking the boat. Leeny Oberg, the longtime finance executive who helped steer Marriott International through major transformations, including its merger with Starwood and the Covid-19 pandemic, will retire on March 31, 2026, the company said Monday. Oberg, 65, joined Marriott in 1999 and became chief financial officer (CFO) in 2016. In 2023, she was also put in charge of global development, overseeing the company's expansion strategy. She will step down as CFO following the filing of Marriott's 2025 annual report and remain with the company through March 2026 to assist with the leadership transition
