70% of commercial real estate loans that are maturing in the next five years are held by banks. Bill Ackman's shareholder letter for Persians Square pointed out the role of smaller regional banks in this. Smaller regional banks would own this kind of debts. Highly localized. But it creates this real problem if we start to see a lot of foreclosures because these smaller banks, they're already under stress. They don't want these buildings on their books anymore than they do houses.
You might be familiar with some of the brands, but the company's name is probably not on your radar.
(00:21) Jim Gillies discusses: - MTY Food Group's 1st-quarter results and why the restaurant franchisor is one of his long-term holdings - The math behind MTY's success - Why he's most curious about Medpace Holdings reporting earnings in late April
(17:45) Most businesses are paying their rent on time, but what happens when they want to renegotiate their leases? Ricky Mulvey talks with Deidre Woollard about the "Wall Of Debt" that's coming due and some more promising sectors in real estate for investors to keep an eye on.
Companies discussed: MTY, MTYFF, MEDP, SBNY
Host: Chris Hill Guests: Jim Gillies, Deidre Woollard Producer: Ricky Mulvey Engineer: Dan Boyd
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