September 14, 2018
Hurricane Florence, a slow-moving Category 1 storm, hammered the Southeast and Mid-Atlantic coast, causing a mad scramble to prepare, including evacuations, flight cancellations, factory shut-downs, port diversions and supply-chain disruptions. The impact is expected to be widespread, including across the region’s commercial real estate holdings.
Research by Morningstar Credit Ratings, LLC identified 339 properties totaling $2.81 billion that fall within a 100-mile radius of where Hurricane Florence was projected to make landfall, which has now occurred. The study found that Freddie Mac-issued deals account for 32% of the exposure by balance.
Additionally, research by S&P Global Market Intelligence found that U.S. equity real estate investment trusts owned 6,005 properties, excluding single-family housing, land and timber assets, in the forecasted hurricane path.
Single-tenant retail REITs own the most properties in the storm’s projected path. According to S&P Global Market Intelligence, Realty Income Corp. owns 740 properties in the area, the most of any REIT, while VEREIT Inc. and National Retail Properties Inc. also own a significant amount of properties exposed to the storm, at 545 and 479, respectively.
American Homes 4 Rent owns the most single-family housing units across the two states, with 9,767 properties, representing 19.6% of the company’s total property count, notes S&P Global Market Intelligence.
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