Tuesday, May 1, 2012

Commercial Real Estate Lending Survey Shows Compensation Rising as Business Activity Grows

 OAKBROOK TERRACE, IL, (May 1, 2012) – Christenson Advisors announced today the results of its 2012 Commercial Real Estate Lending Compensation Survey, which show an increase in compensation, recruiting activity and business activity across the commercial real estate lending industry, when compared to 2011.

The survey assessed organization metrics, compensation program structure and pay levels for leadership positions within executive management, originations, asset management and other key functional areas. 

 “While we continue to face a bumpy road ahead, we saw an increase in transactional activity last year which, in turn, had a positive impact on the debt side of the business” said Kevin Christenson, founder and managing principal of Christenson Advisors. “Notwithstanding further economic or financial mishaps, we expect to see continued improvement across the commercial real estate lending industry during 2012”.

The average total compensation for chief executive officers at companies with more than $2 billion in assets under management was approximately $3.2 million in 2011, while average total compensation for the same position at companies with $2 billion or less in assets under management was slightly above $1.1 million.

 The survey included public and private national companies and commercial real estate lending groups that provide first mortgage loans, bridge loans, preferred equity, joint venture equity, mezzanine financing, senior debt and B-notes, amongst other lending products. 

 Nearly two-thirds of the participants identified themselves as a commercial real estate lender, while the remaining participants classified themselves as an investment manager with a debt focus.  A majority of participants provided higher compensation in 2011 when compared to 2010 and anticipate further escalation in performance year 2012.

For results from Christenson Advisors’ 2012 Commercial Real Estate Lending Compensation Survey, or to view other results from surveys conducted by the company, go to http://www.christensonadvisors.com/surveys.

 Christenson Advisors is a full service real estate consultancy firm which provides customized, hands-on executive recruiting, compensation consulting, financial advisory and management consulting services to the global real estate industry. The Company was founded in early 2008 and is headquartered in Chicago with satellite offices in Dallas, Los Angeles and New York.  CA is a recognized leader in providing creative, strong, and enduring solutions to public and private real estate organizations in an ever-changing market. 

 Additionally, CA Funds Group, Inc., a sister company of CA, is an SEC registered broker-dealer focused exclusively on providing capital raising and related advisory services to the global real estate industry.

 For more information, go to http://www.christensonadvisors.com/.
Julie McCartney                                                                          

U.S. Hotel Profit Recovery Widespread; PKF Trends® Survey Reports 12.7 Percent Profit Growth In 2011

 Atlanta, GA, May 1, 2012.--  The U.S. lodging industry recovery may have begun in 2010, but it wasn’t until 2011 that the improved prosperity was shared by nearly all hotels in the country. 

In 2011, 80.5 percent of the properties that participated in the PKF Hospitality Research, LLC (PKF-HR) Trends® in the Hotel Industry annual survey enjoyed an increase in total revenue, while nearly three-quarters (72.3%) of the participants achieved growth in profits.

 The recently released 2012 edition of Trends® presents aggregate average changes in unit-level revenues, expenses and profits from 2010 to 2011.  The data come from a sample of nearly 7,000 financial statements received from hotels located throughout the United States.

For the Trends® report, hotel profits are defined as net operating income (NOI) before deductions for capital reserves, rent, interest, income taxes, depreciation, and amortization.

 “On average, hotels in the 2012 edition of Trends® sample saw their profits increase by 12.7 percent in 2011.  The good news is not isolated to a select few property categories, but rather, all hotel types were able to enjoy gains on the bottom-line,” said R. Mark Woodworth (top right photo), president of PKF-HR.

Resort hotels led the way with an NOI gain of 18.1 percent, followed by full-service hotels which posted a 14.7 percent increase in profits.  “Not surprisingly, these two property types also achieved the greatest gains in average daily room rates (ADR) from 2010 to 2011,” Woodworth noted.

 Lagging in profit growth were suite hotels.  Both extended-stay and full-service suite hotels were unable to leverage their lofty occupancy levels into the magnitude of ADR gain required to significantly drive profitability.

 “While news of growing profits is welcome, longer-term U.S. hotel owners know that their investment still has a ways to go to achieve the annual dividends that were earned prior to the recent recession,” Woodworth added.

“In 2011, the average Trends® hotel achieved a profit level equal to $12,972 per available room.  In nominal dollars, this is roughly 25 percent short of the peak profit levels achieved in 2007.”

For a complete copy of the PKF report, please contact:

R. Mark Woodworth                                                
PKF Hospitality Research                                     
Tel: 404 842 1150, ext 222                                    
Email: mark.woodworth@pkfc.com                     

Chris Daly
Daly Gray Public Relations
Tel: 703 435 6293

All Quiet on Real Estate Capital Front in April, RECI Reports

Chicago, IL,  May 1, 2012 – The Real Estate Capital Institute finds April closed as a somewhat quite month on the real estate capital front.   Nearly all benchmark indices flattened out due to predictable news from Wall Street.  In other words, no real

The most significant capital market highlights include:

According to the Labor Department statistics, unemployment stands at about
8% with significant job recovery prospects stalling.  Furthermore, gross
domestic product, a key indicator of the nation's health, rose just over two
percent - weaker than expected.  In conclusion, the Fed is hardly motivated
to change monetary policy and change record-low rates.  Recent Fed policy
decisions are seen as "nonevents" by most investors.

Agency lending volume for multifamily continues at a brisk pace.   In order
to control the overflow of business, spreads are starting to widen by least
ten basis points.  As for other lenders (e.g., life companies and conduits),
extremely low mortgage yields provide little incentive to pump more money
into this investment sector.  Rising stock market yields shift more funds
into equities vs. mortgages and other fixed-income investments.  Thus for
now, mortgage rates are as low as can be in the foreseeable future.

The most exciting news on the capital front relates to banks.  These
institutions are now actively selling and moving loans off their balance
sheets as profits have improved.  Expect more seller financing as part of
non-performing loan sales, although few banks are liquidating at distress

According to RECI's research director, Jeanne Peck (top right photo), "If you're not in the capital markets today and taking advantage of market liquidity, you're losing out to record-low deals."  She adds, "Although leverage amounts are more conservative, equity yields are attractive - the whole capital stack is
very borrower/seller friendly."

The Real Estate Capital Institute(r) is a volunteer-based research
organization that tracks realty rates data for debt and equity yields.  The
Institute posts daily and historical benchmark rates including treasuries,
bank prime and LIBOR.  Furthermore, call the Real Estate Capital RateLine at
7RE-CAPITAL (773-227-4825) for hourly rate updates.


The  Real Estate Capital Institute(r)
3517 West Arthington Street
Chicago, Illinois USA 60624
Contact: Jeanne Peck, Executive Director