Business & Finance
Fri, February 13, 2009Thu, February 12, 2009Wed, February 11, 2009Tue, February 10, 2009Mon, February 9, 2009Fri, February 6, 2009Thu, February 5, 2009Wed, February 4, 2009Tue, February 3, 2009Reis, Inc. Launches Reis Value Alert(SM) for Commercial Real Estate Properties
Published in Business and Finance on Monday, February 9th 2009 at 8:59 GMT, Last Modified on 2009-02-09 09:01:35 by Market Wire
SAN DIEGO--([ BUSINESS WIRE ])--With virtually all banks and real estate investors worried about the deteriorating value of their assets, Reis, Inc. (NASDAQ: REIS) today announced the release of a tool that directly addresses this concern. Widely recognized as the leading provider of market information for commercial real estate investors, Reis made the announcement at the Mortgage Bankers Association's CREF/Multifamily Housing Convention in San Diego.
Reis Value Alert identifies potentially troubled assets that warrant further scrutiny. "Everyone is struggling with developing a method for determining the value of complex mortgage-related investments," said Lloyd Lynford, Reis's CEO. "In our judgment, there is no satisfactory answer to that question without understanding how changing market conditions have impacted a property's cashflow and value. By precisely measuring changes in supply, demand, rent, and price for each property's competitive submarket, this product provides banks and all investors with a concrete, unbiased, quantitative methodology for addressing this paramount issue."
Reis Value Alert is useful for analyzing properties and portfolios, especially during bank consolidations or recapitalizations. The tool pinpoints those properties whose debt coverage and loan-to-value ratios have likely eroded, and may have difficulty refinancing in today's tight credit market.
Reis Value Alert provides an instant indication of how a property's value is likely to have changed since the property was acquired or the mortgage originated. In 1,800 U.S. real estate submarkets, the tool measures the shift in net operating income and property values, and delivers results that can be directly applied to individual assets in a user's portfolio.
An apartment property originated during the first quarter of 2006, for example, in the Downtown submarket of San Diego, site of the MBA conference, is likely to have experienced a decline in value of seven percent, based upon Reis's measurement of changes in submarket effective rents, occupancy rates, expenses, net operating income, capitalization rates, and value per unit.
"Commercial real estate continues to be a comparatively illiquid asset class," said Reis's Senior Vice President, Michael Richardson. "As a result, our clients are scrambling to understand how the recent and rapid decline in market fundamentals has impacted their holdings and capital adequacy. Institutional investors are effectively being asked to perform ‘analytical triage,' to identify those loans that require immediate management attention. There is no more efficient tool for meeting this challenge than Reis Value Alert."
"Reis has a deep tradition of helping its clients respond to crises with facts and data," said Mr. Lynford. "We helped the Resolution Trust Corporation assign value to billions of dollars worth of troubled debt in the early 1990s. With regulatory agencies, and indeed our new administration, struggling—through the TARP program and other initiatives—to put our financial sector back on solid footing, many of the issues confronted by the RTC are once again germane. Reis continues to advance its market information and analytical products to bring accuracy, timeliness and transparency to the resolution of this latest financial crisis."
For more information, visit [ www.reis.com ]. MBA Conference attendees, please stop by booth 210 for a Reis Value Alert demo.
About Reis
Reis has provided commercial real estate market information since 1980. Reis maintains a proprietary database containing detailed information on commercial real properties in neighborhoods and metropolitan markets throughout the U.S. The database contains information on apartment, retail, office and industrial properties and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition, Reis data is used by debt and equity investors to assess and quantify the risks of default and loss associated with individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides its information services to many of the nation's leading lending institutions, equity investors, brokers and appraisers.
Reis's flagship product is Reis SE, which provides online access to information and analytical tools designed to facilitate both debt and equity transactions. In addition to trend and forecast analysis at neighborhood and metropolitan levels, the product offers detailed building-specific information such as rents, vacancy rates and lease terms, property sale information, new construction listings and property valuation estimates. Reis SE is designed to meet the demand for timely and accurate information to support the decision-making of property owners, developers and builders, banks and non-bank lenders, and equity investors, all of whom require access to information on both the performance and pricing of assets, including detailed data on market transactions, supply and absorption. This information is critical to all aspects of valuing assets and financing their acquisition, development, and construction.
For more information regarding Reis's products and services, visit [ www.reis.com ].
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain forward-looking statements. These statements may involve risks and uncertainties, including uncertainties with respect to: the pricing and amount, if any, of any repurchases of the Company's common stock; revenues may be lower than expected; the potential inability to retain and increase the Company's customer base; adverse changes in the real estate industry and the markets in which the Company operates; competition; the inability to attract and retain sales and senior management personnel; changes in accounting policies or practices; legal and regulatory issues; difficulties in protecting the security, confidentiality, integrity and reliability of the Company's data; the possibility of litigation arising as a result of terminating the Company's former plan of liquidation; and the risk factors listed under "Item 1A. Risk Factors" of the Company's report on Form 10-K for the year ended December 31, 2007, which was filed with the SEC on March 14, 2008, as updated by "Item 1A. Risk Factors" in the Company's report on Form 10-Q for the quarter ended September 30, 2008 which was filed with the SEC on November 10, 2008. Actual results, events and performance may differ materially from those in the forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
