Show ESTATE S T A I I I I I fiNANCING SH SETS NE HH RECORD Hf RD I j t Statistics Show Realty t J. J Issues for Year Will WillI I R e a c h t. t Iii I i Realty financing In U the 1 United States will set another now new high f Record e ord rd in according according to to to the 1 e research bureau lot the American Bond and Mort tg gage gec company which estimates t mates t t t f volume of real estate mortgage mort mort- gage gage bond during the year vear will will- total totI approximately t 4 Statistics Statistics' made m public by the buTeau bureau bureau bu- bu reau showed that the leading InVestment in- in Vestment hou houses es have been under- under realty issues at at the rate or a month promising an annual volume a of financing clone one b by the hundreds lu o of Bm local houses spread over the t country whose underwritings range ange fro from 1500 to it was estimated will aggregate gate from to i During the first ten months of the year ear ft It was stated worth at of of real reat t estate mortgage 1 bonds were offered ito to the investing g public by the largo larg- ier jer er Investment houses as compared with in the tho same sane period pe pe- period in 1925 a agaIn gain o of slightly more than 9 per cent The Volume of issues for the last two vo months I undoubtedly will increase inease this amount amount loat least surpassing sur- sur passing the record breaking volume vol vol- ume o of recorded in 1925 The repent recent slackening in the volume volume volume vol- vol ume of building operations has not been felt In the realty bond market and the dem demand nd for new pew capital for apartments hotels apartment and other bother types of buildings continues J strong The situation however calls for caution and good judgment judg- judg ment in hi financing new construe construe- I tion altho although gh the importance of declines In rents and vacancies vacancies' s as have have been reported from various Sources during the year have been Unduly exaggerated s t 1 I t Lending Lendh Lend l' l institutions must guard guar againSt again the possible economic blun blunder of f overproduction Ji b by pur pur- of critical aJ with the Investors Investors' safet paramount in mind i DEMAND CONTINUES CONTINUE Survey of the building situation situation situa situa- tion reveals that there ther is still a n con considerable considerable- unsatisfied ed dem demand nd for certain types of of of buildings throughout the country countr especially those that are well located as to light and accessibility Where there actually is wh what t might Ight be termed an overbuilt situation it is isso isso t tso so obvious that no reputable building build ing or lending institution will end enc its efforts or money to aid or ab abet t further building in that particular r district There is n nothing in the present situation that would Justify anxiety ty or jeopardize the Interests o of investors In real estate bonds safeguarded arid and sold sold sold- sold sold-by by reputable Investment houses and the wonderful wonderful won won- record by real estate estate securities ties during the past year r should be ve maintained in 1927 Realty figures compiled by br th the the research bureau do not include enormous put purchase chase of real estate mortgages s made during the yearby yearby year yearby by insurance companies fraternal organizations and other similar financial enterprises for th their ir own un In In New York banks and Insurance comp companies alone took In 1925 Life Lite insurance companies which at the end of tie the year 1925 held real E estate state mortgages mort gages am amounting to more than 4 or r 42 per cent of of all their admitted assets ts have In Increased Ia- Ia creased d their investments In mort mortgage g gage g gl loans loan per cent inthe la lat last t five years ears Heavy Heay purchases have havea a also s been made this year by Insurance incurance Insurance incur incur- ance companies who have found foun t treal real real estate mortgage ge loans the safest safest est st and highest yield yielding Ing type of in- in vestment one one large company compan alone alon underwrote in m real es es- estate tate bonds bond during the first ten months BANKS HANDLE BONDS Another Important development of the year has be been n the growing realization on the Ule part of bankers bankers' of the bankable d desirability of real estate mortgage bonds Today itIs itis it itis is estimated that at least banks are handling first mortgage bonds either as underwriters or dealers The element of safety and high yield has m made de this type of Cf bond attractive to the banks and the Investing public J Review of statistics shows that real estate mortgage bonds have had a phenomenal Increase In pop pop popularity popularity since 1919 when it Is estimated esti mated that only worth wort 1 of this type o of security was ab ab- by investors Since Ince that time timO the increase In volume has been steady and today they rank next to fo public utilities as the greatest greatest greatest great great- est investment outlet for capital capita indicate that A Available vail l le figures during the last eight years somewhat somewhat somewhat some some- what more than of mortgage bond issues have been offered offered of offered of- of the investing public In 1925 1923 the volume of realty flo flo- flo- flo equalled approximately 72 per cent of the amount for public utilities and exceeded railroad bond issues by more than Th The volume o of real est estate te Issues for the first ten months of this year equalled approximately 62 per percent percent percent cent o of public utility and exceeded railroad issues by more than An interesting development inthe in inthe the realty bond field during the thelast thelast I last few months has been the of offering offering offering of- of I fering of an European issue to finance the erection o of apartment buildings in Berlin guaranteed by bya a group of important German in insurance insurance insurance in- in companies This is the first time that any foreign financing of this type has been done in this country and the experiment is beIng being belag be be- ing lag watched with considerable in interest interest interest in- in terest by real estate bond houses who have kept out o of the European realty field because of unsettled economic conditions Real Heal estate financing has been an outstanding Influence in our ur present period o of prosperity and financial progress according to VJ W. W J. J Moore president of the American Ameri Amen can Bond and Mortgage company NEW LIFE TO COMMERCE In furnishing funds for the financing o of needed building construction construction construction con con- realty bonds have made madea a widespread contribution to the business prosperity of the country said ald Mr Ir Moore Proceeds of these mortgage securities go through a variety o of channels putting patting new life and blood into the veins of commerce Millions of dollars are provided for wages and employment employment employ employ- ment meat In the building trades and the thousands of men engaged in manufacture and transportation of building materials Thus the pur pun purchasing purchasing chasing power o of the workers is in increased increased increased in- in creased and business generally is stimulated and benefited Real estate bonds have sto stood d the test of time and their popularity popular popular- I ity can T Be e attributed to the Intelligence intelligence intelligence intelli Intelli- gence of investors who now fully tully realize the soundness soundness' of this type of security as such bonds remain unchanged by economic and political political cal disturbances They never de depreciate depreciate depredate de- de predate or fluctuate in ina a fluctuatIng fluctuating fluctuating ing market their value is constant constant constant con con- stant the income from them d de e- e When safeguarded by responsible security houses they meet every requirement of safe profitable and carefree Invest invest- ment meat |