Shares of New York Community Bancorp (NYCB) plunged 5.30% during intraday trading on Thursday, as concerns mounted over the bank's exposure to the troubled commercial real estate market.
The decline came after the bank disclosed another quarterly net loss and warned of further challenges in its commercial real estate lending portfolio. According to a report by The Wall Street Journal, banks and lenders are seizing control of distressed commercial properties at the highest rate in nearly a decade, signaling that the sector's downturn is entering its next phase and approaching a bottom.
The surge in commercial property foreclosures has been driven by high interest rates and the slow return of workers to office buildings, leading to a significant decline in property values. As a result, many lenders are now taking over properties and conducting short sales to mitigate losses.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.