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NEW YORK, Aug 6, 2009 (GlobeNewswire via COMTEX News Network) -- Reis, Inc. (Nasdaq:REIS) ("Reis" or the "Company"), a leading provider of commercial real estate market information and analytical tools, today announced the introduction of a new offering designed to help clients better quantify the value and risk associated with their commercial real estate holdings, an especially critical undertaking given the turmoil in market conditions and increasingly exacting regulatory requirements. To its 10-year discounted cash flow Valuation tool, the company has added two additional measures of a property's value -- a direct capitalization approach and a sales price per square foot approach based on comparable transactions in the local market. When considered together, the three results provide insight into the sometimes paralyzing spread between buyers' and sellers' pricing expectations. Available for property-by-property analysis, the new Valuation module also serves as the fundamental element of Reis's Asset and Portfolio Analysis(sm) service.
The Company made both announcements following Reis CEO Lloyd Lynford's web-based live product demo that was attended by more than 600 commercial real estate professionals representing more than 300 investing institutions.
"This is just the latest example of Reis's long history of responding to market conditions and client needs by providing more powerful analytical capabilities and services," said Mr. Lynford. "An effective understanding of risk cannot occur, in my judgment, without a rigorous analysis of the collateral property, including periodically updated assessments of its cash flow potential, value and capacity to service debt."
Reis's Director of Research, Dr. Victor Calanog, discussed the advantages of considering multiple valuation approaches. "By adding direct capitalization and sales comparables approaches to our discounted cashflow Valuation module," said Dr. Calanog, "we are helping decision makers understand that a buyer's high price expectation may be attributable to the application of still comparatively low cap rates to in-place income that has yet to be diluted by new leases at lower contract rents. An assessment of value and risk necessarily requires an internalization of market realities such as this one, which are illuminated by our Valuation module. This is true when considering the acquisition or disposition of a single property, and becomes even more critical for risk managers who are responsible for entire portfolios."
Mr. Lynford and Dr. Calanog were joined on their presentation by Mr. Robert Rose, who, in his former position as Chief Risk Officer of Sovereign Bank, worked closely with Reis to analyze existing portfolios and target acquisitions. "Over the years, in the context of assessing risk factors for our existing portfolio of loans, as well in analyzing acquisition opportunities, I've worked with Reis to deploy its valuation and credit risk tools to provide the bank with a comprehensive understanding of how recent and prospective changes in property cash flows and values have affected key metrics such as debt service coverage ratio, loan to value ratio and more sophisticated measurements such as probability of default, loss given default, and expected loss," said Mr. Rose.
The enhanced single property Valuation module is now available as an add-on module within Reis SE. Asset and Portfolio Analysis services are available by custom engagement.
About Reis
The Company's primary business is providing commercial real estate market information and analytical tools for its customers, through its Reis Services subsidiary. Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietary database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the U.S. The database contains information on apartment, office, retail and industrial properties and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition, Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associated with individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides its information services to many of the nation's leading lending institutions, equity investors, brokers and appraisers.
Reis's flagship product is Reis SE, which provides web-browser based online access to information and analytical tools designed to facilitate debt and equity transactions as well as ongoing evaluations. In addition to trend and forecast analysis at metropolitan and neighborhood levels, the product offers detailed building-specific information such as rents, vacancy rates, lease terms, property sales, new construction listings and property valuation estimates. Reis SE is designed to meet the demand for timely and accurate information to support the decision-making of property owners, developers and builders, banks and non-bank lenders, and equity investors, all of whom require access to information on both the performance and pricing of assets, including detailed data on market transactions, supply, absorption, rents and sale prices. This information is critical to all aspects of valuing assets and financing their acquisition, development and construction.
For more information regarding Reis's products and services, visit www.reis.com.
Note on Forward-Looking Statements
This press release, together with other statements and information publicly disseminated by Reis, Inc., contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Reis, Inc. or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks include, but are not limited to, the failure of the company's products or product enhancements to succeed. Please refer to the company's annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of various risks that could cause results to differ materially.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Reis, Inc.
Reis, Inc. Press Contact: Michael J. Richardson, Senior Vice President, Sales & Marketing (212) 921-1122
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