Earnings volatility is a key concern for Real Estate Investment Trusts. With the need to transparently communicate to stockholders, investors and partners, along with obligations for SEC filings, REITs demand effective capital markets strategies and efficient treasury management solutions. Whatever the composition of the portfolio, REITs must manage their assets with a high degree of precision. Chatham serves Equity and Mortgage REITs with an understanding of the needs of both non-financial and financial entity companies. We work with REITs for interest rate and foreign currency hedging and hedge accounting, with an eye on compliance under Dodd-Frank and how legal requirements, like ISDAs, should be negotiated. As a trusted member of finance and treasury teams, Chatham supplies expert advice, practical processes and software solutions to help manage regular activities such as loan management and debt valuation. We also help navigate critical…

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The right hedge accounting can reduce volatility in your financials As a real estate company filing with the SEC or providing transparency to investors, you are responsible for financial reporting. If you’re hedging you have sensitivity to the resulting volatility in earnings, and you can benefit from hedge accounting that navigates standards from the FASB and IAS and aligns under US GAAP and IFRS. Chatham Financial pioneered the gold standard in hedge accounting for real estate companies when derivatives were first introduced. Our solutions are why most REITs applying hedge accounting use Chatham as their hedge accounting partner. How Chatham Hedge Accounting helps real estate companies We align optimal economic hedging and favorable hedge accounting: Our expertise in both structuring transactions and interpreting the nuances of the hedge accounting standards enable us to optimize accounting results. With a primary objective…

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A strong hedge accounting program can reduce or eliminate earnings volatility Investors who wish to avoid surprise risks or auditor scrutiny can depend on Chatham’s expertise in hedge accounting. Whether you have SEC filing obligations, need to provide transparency to investors, or wish to establish a consistent earnings track record, we can successfully navigate the complexities of ASC 815 or IAS 39, which are so critical. By timing the earnings recognition of the derivative with that of the hedged asset, liability, or forecasted transaction, we can significantly reduce or eliminate the earnings volatility that would otherwise be recognized in financial statements. Hedge Accounting solutions for private equity sponsors and their portfolio companies Chatham’s comprehensive hedge accounting solutions are customized for each client to reduce complexity and administrative burdens. We provide technical consulting, analysis, technology, education, and key hedge-accounting deliverables on…

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In six days, those who observe the Chinese calendar will usher in the New Year with traditional cuisine, family gatherings, and fireworks displays. 2013 will be the year of the snake, and because of the serpent’s association with delusion and subterfuge, those who subscribe to the mythology behind the calendar anticipate an added helping of deceptive behavior this year. So far, we’re off to a roaring start! First, on January 16th, Deadspin broke the story that Heisman candidate Manti Te’o’s inspirational girlfriend did not exist. The story had been propagated in the fall that Te’o’s girlfriend, whom he had met online, died tragically at 22 of leukemia just hours before a critical game against Michigan State. Inspired by her life, Te’o would go out to lead Notre Dame to an upset 20-3 victory, accruing twelve tackles over the course of…

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On April 18 the Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) approved a final rule defining the terms “swap dealers,” “major swap participants,” and “eligible contract participants.” Many market participants were pleased that the regulators appeared to have listened to their concerns and defined the terms “swap dealers” and “major swap participants” in such a way that will not capture the vast majority of derivatives end users. The final rule provided less comfort to small end users, however, who may find that they will no longer be able to enter into over-the-counter derivative transactions because they do not qualify as “eligible contract participants.” – Major Swap Participants (“MSPs”): The final rule appears to be consistent with Congressional intent to focus the MSP definition on entities whose derivatives use is so material that the failure of…

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President Obama this week issued an executive order that would, in his words, “[make] it our mission to root out regulations that conflict, that are not worth the cost, or that are just plain dumb.” He observed that “regulations do have costs” and that “we have to make tough decisions about whether those costs are necessary.” As we have now for months been engaged in the regulatory rulemaking process, we have a keen appreciation for this Presidential initiative. At the same time, however, we note that the President’s executive order has no force or effect on independent agencies such as the CFTC, SEC and Federal Reserve, who are hard at work writing hundreds of pages of rules delegated to them by Congress as part of financial legislation. Despite the limited reach of the order, we appreciate its sentiments and are…

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