Now more than ever, accurate mark-to-market on commercial real estate holdings is vital. Just this month Blackstone announced it would close a real estate fund that used leverage to load up on commercial mortgage backed securities, investments that have slumped during the COVID-19 pandemic, Pensions and Investment reported.
“The Blackstone Real Estate Income Master Fund, with $1.1 billion of total investments at year-end, including those purchased with leverage, will sell assets & distribute proceeds to shareholders, the company said in a regulatory filing. CMBS delinquencies in the U.S. surged to 3.59% in June from 1.46% in May, the largest month-over-month increase on record, according to Fitch Ratings. With consumers staying home and shopping online, hotels and retailers are missing mortgage and rent payments.
The funds recently built a strong cash position “and have begun to see a recovery in pricing since the recent trough related to the outbreak of COVID-19,” the firm said. As of May 31, almost 10% of the fund’s net assets were in cash.”
Even the biggest real estate players were shaken out by volatile pricing in their portfolio. Having accurate real-time data is necessary, and we provide that data with provenance that is audit-able and immutable. #VerifiedByInveniam