Category: Economics

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NJHMFA Board meeting delivers key housing policy advancements in tax credits and multifamily programs

TRENTON, N.J. — New Jersey Housing and Mortgage Finance Agency (NJHMFA) approved two new programs, the Urban Preservation Program (UPP) and Workforce Housing Program (WHP), while committing funding to 15 new Low-Income Housing Tax Credit (LIHTC) developments at its Oct. 19 Board meeting.

“The HMFA Board advanced resolutions committing funds to a broad variety of new developments, each of which will bring safe, high-quality, long-lasting, and affordable housing to communities across our State,” said Executive Director Melanie R. Walter.

“Governor Murphy and the Legislature have made record investments in affordable housing production during the past two State budget cycles. This unprecedented support has enabled NJHMFA to leverage federal funds to expand our successful Affordable Housing Production Fund and create two new specialized programs that will help preserve affordable housing in dozens of communities and create many new high-quality housing opportunities for New Jersey residents.”

Urban Preservation Program (A-5596/S-3991)

The Urban Preservation Program (UPP) is an $80 million program established within the Affordable Housing Production Fund by Governor Murphy’s FY2024 budget. Dedicated to preserving, renovating, and rebuilding LIHTC projects in 81 designated cities across the state at risk of losing affordability controls, the UPP is a critical tool in maximizing the benefit of affordable housing. With 1,510 LIHTC apartments in these municipalities at risk of losing their affordability within the next five years alone, the UPP will guarantee enduring and high-quality affordable housing, providing significant relief to residents.

Workforce Housing Program

Also created by Governor Murphy’s FY2024 budget, the Workforce Housing Program (WHP) is a $50 million program established within the Affordable Housing Production Fund. For the first time, there will be a dedicated state program to incentivize the creation of deed-restricted apartments for middle-income residents earning between 80% and 120% of Area Median Income. Further, this program will ensure that these units are being developed within municipalities with more jobs than housing units or are near public transit options, which will protect middle-income New Jerseyans from surging rents while connecting them with reliable transportation and increased job opportunities.

New LIHTC Projects

The Board also committed funding for 15 new multifamily LIHTC developments, of which 11 received 4% LIHTC and 4 received 9% LIHTC. These funding commitments will create or rehabilitate 1,378 housing units, generating $448 million in total development costs. Many of these projects were made financially viable thanks to the Affordable Housing Production Fund (AHPF) and associated programs, demonstrating the critical importance of the types of programs that NJHMFA approved today in making affordable housing opportunities available for all New Jerseyans.

Some highlights include:

Tavistock Townhomes at Woolwich

A new family development in Woolwich Township will turn a currently vacant lot into 72 affordable apartments spread across six three-story buildings. The project will reserve ten units for homeless individuals and families, while providing social services to tenants through the Center for Family Services. Rents range from $340 to $2,000 depending on unit size and tenant income. Tenants will have many nearby amenities, including mass transit, houses of worship, clinics, shops, and schools. Tavistock Townhomes at Woolwich is possible thanks in part to $1.2 million in financing from the Affordable Housing Production Fund Set-Aside and $10 million generated through the sale of 9% LIHTC.

Waterford Family Housing Phase II

A new townhouse-style development will provide 57 affordable apartments in Waterford, including eight apartments set aside for veterans experiencing homelessness. With rents ranging from $330 to $1,532, the project will provide affordable and spacious apartments for low- and moderate-income tenants. The People for People Foundation of Gloucester County will provide social services to tenants to promote independent living. Additionally, all first-floor units will be either handicap accessible or adaptable for residents with disabilities. Waterford Family Housing Phase II will receive $8.1 million from the AHPF and generate $7.7 million through the sale of 4% LIHTC.

Heritage Village at Moorestown

A new senior housing complex in Moorestown will provide 82 affordable apartments for seniors, including five set aside for disabled and homeless veterans, alongside common space amenities such as a club room, fitness room, lounge, and laundry facilities. A key component of the municipality’s court-approved settlement with the Fair Share Housing Center, this development will receive $8 million in funding from the AHPF and generate $7 million in equity through the sale of 4% LIHTC.

About Us: The New Jersey Housing and Mortgage Finance Agency (NJHMFA) advances the quality of life for residents of and communities throughout New Jersey by investing in, financing, and facilitating access to affordable rental housing and homeownership opportunities for low and moderate-income families, older adults, and individuals with specialized housing needs. To learn more about NJHMFA, visit: https://NJHousing.gov/

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NJHMFA named 2023 Leader in Real Estate, Construction, and Design by NJBIZ

TRENTON, N.J. —  New Jersey Housing and Mortgage Finance Agency (NJHMFA) has been named a 2023 Leader in Real Estate, Construction and Design by NJBIZ for its contributions to multifamily development in New Jersey.

This award particularly recognizes NJHMFA for its recent leadership in developing key affordable housing projects in Paterson and Hamilton.

“We are honored to receive this recognition from NJBIZ,” said Executive Director Melanie R. Walter.

“This award recognizes our commitment to ensuring affordable housing in Paterson and Hamilton. Our work here reflects our dedication to providing safe, affordable housing for all New Jersey residents.”

Three projects opening this year proved pivotal in earning this recognition from NJBIZ.

This July, Barclay Place, which provided 56 affordable apartments in downtown Paterson a block from Saint Joseph University Medical Center, opened its doors to the public. This project received financing through the NJHMFA’s innovative Hospital Partnership Subsidy Program (HPSP), a national model for leveraging hospitals’ status as anchor institutions to improve community health outcomes through the creation of nearby affordable and supportive housing.

Two miles away, Hinchliffe Residences served as the financing key to Paterson’s long-awaited redevelopment and revitalization of Hinchliffe Stadium, one of the country’s last remaining pre-integration baseball stadiums. By leveraging the stadium’s historic nature with modern planning elements, including affordable senior housing and a new parking deck, the state’s largest-ever historic preservation project has become a stepping stone to Paterson’s future.

Freedom Village at Hamilton Woods exemplified how NJHMFA spearheads the development of supportive housing in Hamilton for residents with special needs. This barrier-free apartment provides residents with ample access to community resources and ensures that all residents can live independent, fulfilled lives, regardless of income or disability status.

The award winners will be formally recognized at a virtual ceremony on November 29. To learn more about the awards, visit https://njbiz.com/event/njbiz-leaders-in-real-estate-construction-and-design-2023/.

About Us: The New Jersey Housing and Mortgage Finance Agency (NJHMFA) advances the quality of life for residents of and communities throughout New Jersey by investing in, financing, and facilitating access to affordable rental housing and homeownership opportunities for low and moderate-income families, older adults, and individuals with specialized housing needs. To learn more about NJHMFA, visit: https://NJHousing.gov/

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The Firsd Tea Sustainability Perspectives 2023 report finds tea outperforms coffee in 4 key sustainability areas

Firsd Tea’s new report suggests industry experts view some sustainability efforts in tea more favorably than in coffee

… the discovery that tea is perceived as performing relatively well in these sustainability areas came as a breath of fresh air.

— Jason Walker, Marketing Director, Firsd Tea

SECAUCUS, N.J. – According to a new report from Firsd Tea, the largest importer of Chinese tea in the U.S., most professionals in tea and related industries—such as coffee and cocoa—say the tea industry outperforms coffee across four key sustainability focus areas.

 

Firsd Tea Sustainability Perspectives 2023 is the second annual survey that continues a first-of-its-kind global 2022 study to gauge opinions of tea sustainability among associated experts.

 

Specifically, most respondents in 2023 viewed tea as performing “very well or somewhat well” regarding reducing its environmental impact (75%), workers’ rights (64%), gender equity (58%), and improving the livelihood of smallholder farmers (66%) when compared with coffee and cocoa sectors.

 

“With so much negative news about the environment in the press, the discovery that tea is perceived as performing relatively well in these sustainability areas came as a breath of fresh air,” Firsd Tea marketing director, Jason Walker, explains. He adds, “What’s so compelling about our global 2023 study’s findings compared with those in 2022 is that a larger slice of our respondents were actually from the coffee industry this go-around.” Coffee professionals comprised 36% of this year’s vs. 19% of last year’s study.

 

Apart from revealing tea’s notable perceived performance in key sustainability areas, the study also found:

  • Most survey-takers remain worried about the effects of climate change on their business operations (80% in 2022 vs. 75% in 2023).

 

  • Tea is still considered the most sensitive industry to the effects of climate change by most professionals in tea and related industries (93% in 2022 vs. 95% in 2023).

 

  • Most respondents in tea and related industries still agree Organic Certification is the most important standard to consumers (84% in 2022 vs. 88% in 2023).

 

  • Compared with Firsd Tea’s 2022 study, Vietnam (+37%), Kenya (+33%), China (+26%), and Sri Lanka (+26%) saw outstanding perceived sustainability improvements in 2023.

 

  • Most respondents in tea and related industries report improved outlooks on progress made in sustainability from 10 years ago, the current state of sustainability in tea, and the trajectory for the next 10 years.

 

“We are honored to continue this essential research to encourage stakeholders across tea and related industries to reflect on and prioritize sustainability,” explains Firsd Tea executive director, Shengyuan Chen.

 

The study derives its results from a three-month long survey conducted from May 2023 to July 2023 in collaboration with Tea & Coffee Trade Journal, a 120+ year-old publication covering the global tea and coffee industries from origin through the supply chain. Princeton-based Crothers Consulting administered the survey to 100 voluntary respondents conducting business in tea and related sectors (e.g. coffee, wine and cocoa).

 

For the full Firsd Tea Sustainability Perspectives 2023 Report, click here.

 

About Firsd Tea:

Firsd Tea is the U.S. subsidiary of parent company, Zhejiang Tea Group, Ltd. (ZJT), China’s largest tea exporter and the world leader in green tea exports. Founded in 1950, ZJT has been the largest tea producer and exporter in China for 25 consecutive years. The company has remained one of the leading and most technologically advanced manufacturers and innovators in the Chinese tea industry. ZJT boasts strategic collaboration with the Science Department of Zhejiang University as well as the Hangzhou Tea Research Institute of All China Federation of Supply and Marketing Co-operatives. Zhejiang Tea Group’s portfolio of products include EU compliant conventional teas and organic teas (first organic tea producer in China since 1989), decaf teas (one of only two companies in China who have a CO2 decaf facility) and chemical solvent-free tea extractions, including instant teas, tea polyphenols, and EGCG.

 

About the Firsd Tea Sustainability Perspectives study:

The Firsd Tea Sustainability Perspectives study is an annual, first-of-its-kind global tea report that derives its findings from a survey of voluntary respondents conducting business in tea and related industries (e.g. coffee, sugar cane, wine and cocoa). Survey responses are primarily generated by website posting and subscriber outreach by Firsd Tea and The Tea & Coffee Trade Journal, direct messaging on platforms such as LinkedIn, and word-of-mouth networking. Industry-specific organizations also promote the survey by sharing it with their respective stakeholders.

 

— Source: Firsd Tea
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Business Culture Economics Government

Mary O. Griffin, IOM, appointed to Northeast Board of Regents of Institute for Organization Management

A Leadership Training Program Produced by the U.S. Chamber of Commerce 

 

WASHINGTON, D.C. — Institute for Organization Management, the professional development program of the U.S. Chamber of Commerce, has appointed Mary O. Griffin, IOM, Vice President of Membership Retention and Relations of the African American Chamber of Commerce of New Jersey to the Northeast Board of Regents.

 

As a member of this Board, Griffin will implement the policies created by Institute’s National Board of Trustees.

 

“A strong Board of Regents is essential to Institute’s success,” said Raymond P. Towle, IOM, CAE, vice president of Institute for Organization Management at the U.S. Chamber of Commerce. “These volunteers drive site attendance, provide recommendations for program improvement, and serve as an on-site resource for Institute participants.”

 

Since its commencement in 1921, the Institute program has been educating tens of thousands of associations, chambers, and other nonprofit leaders on how to build stronger organizations, better serve their members and become strong business advocates.

 

Institute’s four Boards of Regents serve on behalf of the National Board of Trustees. Each Board of Regents is responsible for recruitment, retention, and marketing of the program nationwide. Each regent is an Institute graduate nominated by their peers.

 

Institute for Organization Management is the professional development program of the U.S. Chamber of Commerce. It is the premier nonprofit professional development program for association and chamber professionals, fostering individual growth through interactive learning and networking opportunities.

 

The U.S. Chamber of Commerce is the world’s largest business organization representing companies of all sizes across every sector of the economy. Our members range from the small businesses and local chambers of commerce that line the Main Streets of America to leading industry associations and large corporations.

institute.uschamber.com           @IOMeducates

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Milhouse Engineering & Construction Chairman and CEO, Wilbur C. Milhouse III, to speak at 2023 DEI Trailblazer Awards

TRENTON, N.J. — The African American Chamber of Commerce of New Jersey (AACCNJ) and the New Jersey Chamber of Commerce (NJCC) are pleased to announce that Wilbur C. Milhouse III, Chairman and CEO of Milhouse Engineering & Construction, Inc., will be a featured speaker at the 2023 DEI Trailblazer Awards.

Milhouse, an award-winning entrepreneur with more than 30 years of diversified civil and structural engineering experience, has transformed his expertise into a global enterprise that has garnered national attention.

His passion for community advancement led to the co-founding of Milhouse Charities in 2012, a nonprofit organization dedicated to promoting academic achievements and opportunities for minorities and underrepresented youth by supporting STEM-focused initiatives.

“It is an honor to have the leader of the largest Black-owned engineering design firm in the United States speak at the DEI Trailblazer Awards ceremony,” comment John E. Harmon Sr., IOM, AACCNJ’s Founder, President, and CEO. “This is a special treat for our guests.”

This year’s DEI Trailblazer Awards event marks the second annual ceremony co-hosted by AACCNJ and NJCC. It is dedicated to recognizing companies and organizations that are making noteworthy progress in the crucial domains of Diversity, Equity, and Inclusion. Specifically, the DEI Trailblazer Awards acknowledge outstanding achievements in six distinct categories:

  1. Supplier Diversity: Recognizing businesses committed to diverse contracting for goods and services.
  2. Access to Capital: Commending businesses supporting enhanced access to capital for historically marginalized enterprises and entrepreneurs.
  3. Corporate Board Diversity: Celebrating businesses with diverse board compositions that reflect underrepresented communities.
  4. Workforce Diversity: Honoring businesses that exhibit a strong commitment to diversifying their staff through comprehensive recruiting, hiring, and retention efforts.
  5. Corporate Citizenship: Recognizing businesses with a significant commitment to philanthropy and community engagement, with a focus on historically marginalized communities.
  6. Emerging DEI Influencer: Applauding businesses in the early stages of DEI implementation, demonstrating intentionality across the above categories.

The 2023 nominees include AmeriHealth; Bank of America; Bridge Builders Newark, LLC; CannPowerment; The Ceceilyn Miller Institute for Leadership & Diversity; Chiesa Shahinian & Giantomasi P.C.; Cole Schotz; Delta Dental of New Jersey; Gibbons P.C.; Hackensack Meridian Health; Johnson & Johnson; Lockerbie & Co.; Modivcare; New Jersey Institute of Technology; Phillips 66-Bayway Refinery; PSEG; Santander US; Somerset County Business Partnership; Tené Nícole Creative Agency; UnitedHealth Group; and We Are Jersey.

The DEI Trailblazer Awards ceremony promises to be an inspiring event. Attendees will have the unique opportunity to hear from Milhouse and other esteemed leaders as we celebrate the nominees and reveal the 2023 awardees. The awards reception will take place at the Olde Mill Inn in Basking Ridge, New Jersey, on Monday, November 20, 2023, 5-8 p.m. For more information about the DEI Trailblazer Awards and to register for the event, please visit: https://njchamber.com/events/dei-trailblazer-awards

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Business Culture Economics Education Lifestyle Programs & Events Sports & Gaming

Skechers Pier to Pier Friendship Walk celebrates 15th anniversary with more than $3M raised for kids

Presented by Kinecta Federal Credit Union, the Annual Event Broke Records and Will Help Thousands of Children with Diverse Needs, Public Education and Scholarships

 

LOS ANGELES — (BUSINESS WIRE) — The Skechers Pier to Pier Friendship Walk celebrated its 15th anniversary event with more than $3 million raised for children with special needs, public education, and national scholarships—totaling over $24 million in donations since its inception in 2009. Thousands of registrants contributed to these causes at the milestone event, which was supported by Presenting Sponsor Kinecta Federal Credit Union and over 100 generous businesses and donors, and featured Brooke Burke, Mr. T and Amanda Kloots along with performances from Young Selena singer and America’s Got Talent golden buzzer winner Madison Taylor Baez, Team Siwa’s pop group XOMG POP! and teen group FuturePop.

“I am very fortunate to have a platform to do good, and to be part of an organization at Skechers and the community of the South Bay that believes in giving back. It’s been my greatest joy to make a difference through philanthropy, especially the Skechers Pier to Pier Friendship Walk,” said Michael Greenberg, founder of the Walk.

“For over 15 years, I’ve seen thousands of our children form friendships, mature into young adults, realize their purpose, set out into the world—all the way knowing that we are here for them, behind them. The Walk has been such a beautiful and moving day to be part of, year after year—from seeing all the walkers to our generous celebrities and volunteers to incredible organizations like Kinecta and companies with so much heart—all here to uplift our kids. I’m deeply grateful for this experience—I know we’re helping future generations, and I encourage every community to do the same. I always say, ‘give until it hurts.’ But really, seeing the smiles on the kids’ faces, it just feels good.”

 

“This walk is about the power of friendship, which is actually quite profound when you think about it,” added fitness encourager and television host Brooke Burke. “Friendship is the thread that connects every human. It inspires us to make the impossible possible. And it’s the constant I’ve seen over the 12 years I’ve supported this walk. From the parents, neighbors and kids to the engaged sponsors and performers, athletes and icons who have graced this stage, everyone is here to celebrate friendship year after year.”

 

“This is my first time here, and what a thrill it’s been,” added actor and icon Mr. T. “Every kid has room to grow—there are no ceilings to what any person can learn and achieve. And what an amazing, special day this community has made to help them on their way. The energy and enthusiasm at this event is incredible. This Walk’s going to keep celebrating for 15 more years and beyond—and I’m so happy to be part of this beautiful legacy of love for our kids.”

 

Historically California’s largest event for children with special needs and education, the 3.5-mile Skechers Pier to Pier Friendship Walk supports the future Friendship Campus (The Greenberg Family / Skechers Center)—a $55 million, 3.25-acre campus that will offer a life-changing community for friendship and learning. Planned for completion by year-end 2025, the facility will include numerous vocational programs including a Creative Arts Center, Culinary Institute, Recreation Center, Life Skills programming, and early education and mentoring opportunities, giving young adults the tools to transition to the workforce and find lifelong passion and purpose.

 

The Campus will also be home to the new headquarters for the Friendship Foundation, which offers companionship, celebrates uniqueness and encourages acceptance for all with diverse abilities. The organization offers over 60 in-person programs such as art, music, fitness, sign language, science, social emotional wellness and yoga, as well as pop-up programs like virtual scavenger hunts and talent shows that are free for anyone to attend locally and across the United States.

 

Academically, the Walk supports public school education foundations—reducing class sizes, updating labs, libraries and facilities and protecting teachers’ jobs. The Skechers Foundation’s national scholarship program also gives a portion of Walk proceeds to students with financial need and proven excellence in academics, athletics and leadership, donating more than $1.1 million in scholarships to date.

 

The Skechers Pier to Pier Friendship Walk thanks Presenting Sponsor Kinecta Federal Credit Union and all of its sponsors, including Nickelodeon, Rare Beauty, Schwartz Family Foundation, Steel Sports, United Legwear & Apparel Co., Big 5 Sporting Goods, Petco Love, TJX Companies, Chevron, Bank of America, Ross Stores, Barco, Dakine, Vertra, LA Kings, LA Dodgers, McCarthy, LA Angels, Continental Development, WSS, Turkish Airlines, Cushman & Wakefield and many more companies that are committed to supporting our children.

 

To watch this year’s Skechers Pier to Pier Friendship Walk and learn more about the event, please visit skechersfriendshipwalk.com or YouTube, and follow the Walk on Facebook, X and Instagram.

 

About Skechers Foundation

Established in 2010 to help children in need, the Skechers Foundation is dedicated to strengthening communities to ensure the health, success and well-being of youth worldwide. We invest in a global network of charitable organizations dedicated to embracing individuals with diverse abilities, improving education, empowering disadvantaged families and providing humanitarian, disaster and economic relief. By supporting millions through our products and services, we aspire to make a valiant effort in creating stronger, self-sufficient individuals for future generations.

 

About Skechers USA, Inc.

Skechers U.S.A., Inc. (NYSE:SKX), a Fortune 500® company based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. Collections from The Comfort Technology Company™ are available in 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and over 4,900 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram and TikTok.

 

About Kinecta Federal Credit Union

Headquartered in Manhattan Beach, California, Kinecta Federal Credit Union is one of the country’s largest credit unions, with assets of $6.7 billion and more than 270,000 members from coast to coast. Banking the Southern California area for more than 80 years, with additional branches in New York, New Jersey, Northern California and Florida, Kinecta offers its members a full range of financial products from banking, lending and insurance to wealth management services. Kinecta has been recognized by the Mortgage Bankers Association as a recipient of its Diversity, Equity and Inclusion (DEI) Residential Leadership Award, and received the Best of Show award granted by the Credit Union National Association (CUNA) Technology Council. Residents of Rochester, NY, voted Kinecta as a finalist for Best Credit Union in the Democrat & Chronicle’s annual Rochester Choice Awards in 2022. Forbes awarded Kinecta as a top-ranked credit union in California on its America’s Best Credit Unions in Each State 2022 List. Kinecta has 29 branches, and its members can use a network of more than 5,800 shared branches and access over 85,000 fee-free ATMs nationwide. For more information on Kinecta, visit the website and LinkedIn.

 

This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States, and the impact of wars, acts of war and other conflicts around the world; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2022 and its quarterly reports on Form 10-Q in 2023. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

Contacts

Jennifer Clay

SKECHERS USA

jennc@skechers.com
(310) 937-1326

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Sources: Bungie cut ~100 jobs after executives said the company’s revenue was 45% below projections for the year, citing a drop in Destiny 2’s popularity

—  Sales at studio were running 45% below projections for year 

— Layoffs are part of a bigger revamp at Sony PlayStation unit

 

 

Jason Schreier / Bloomberg:

 

Bungie’s decision to cut an estimated 100 jobs from its staff of about 1,200 followed dire management warnings earlier this month of a sharp drop in the popularity of its flagship video game Destiny 2.

Just two weeks ago, executives at the Sony-owned game developer told employees that revenue was running 45% below projections for the year, according to people who attended the meeting.

Attendees play Bungie’s “Destiny 2” during E3 in Los Angeles. Attendees play the “Destiny 2” video game developed by Bungie Inc. and published by Activision Blizzard Inc. during the E3 Electronic Entertainment Expo in Los Angeles, California, U.S., on Tuesday, June 13, 2017. For three days, leading-edge companies, groundbreaking new technologies and never-before-seen products is showcased at E3. — Photographer: Troy Harvey/Bloomberg — Photographer: Troy Harvey/Bloomberg

Chief Executive Officer Pete Parsons pinned the big miss on weak player retention for Destiny 2, which has faced a poor reception since the release of its latest expansion, Lightfall.

 

The next expansion, The Final Shape, was getting good — not great feedback — and management told those present that they planned to push back the release to June 2024 from February, according the people, who asked not to be identified because they weren’t authorized to speak publicly. The additional time would give developers a chance to improve the product.

In the meantime, Parsons told staff Bungie would be cutting costs, such as for travel, as well as implementing salary and hiring freezes, the people said. Everyone would have to work together to weather the storm, he said, leaving employees feeling determined to do whatever was needed to get revenue back up.

But on Monday morning the news got worse: Dozens of staffers woke up to mysterious 15-minute meetings that had been placed on their calendars, which they soon learned were part of a mass layoff. Bungie laid off around 8% of its employees, according to documentation reviewed by Bloomberg. Bungie didn’t respond to requests for comment.

Employees who were let go will receive at least three months of severance and three months of Bungie-paid COBRA health insurance, although other benefits, such as expense reimbursements, ended Monday, sending some staff racing to submit their receipts.

Laid-off staffers will also receive prorated bonuses, although those who were on a vesting schedule following Sony Group Corp.’s acquisition of Bungie in January 2022 will lose any shares that weren’t vested as of next month.

The layoffs are part of a larger money-saving initiative at Sony’s PlayStation unit, which has also cut employees at studios such as Naughty Dog, Media Molecule and its San Mateo office.

TD Cowen analyst Doug Creutz wrote in a report Monday that “events over the last few days lead us to believe that PlayStation is undergoing a restructuring.”

PlayStation president Jim Ryan announced last month that he plans to resign.

Many of the layoffs at Bungie affected the company’s support departments, such as community management and publishing. Remaining Bungie staff were informed that some of those areas will be outsourced moving forward.

 

 

— Techmeme

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Business Economics Lifestyle Local News News Now! Regulations & Security

Church & Dwight Co., Inc. declares 491st regular quarterly dividend

EWING, N.J. — (BUSINESS WIRE) — Church & Dwight Co., Inc. (NYSE:CHD) today reported that its Board of Directors declared a regular quarterly dividend of twenty seven and one quarter ($0.2725) cents per share.

This quarterly dividend will be payable December 1, 2023 to stockholders of record at the close of business on November 15, 2023. It is the Company’s 491st regular consecutive quarterly dividend.

 

Church & Dwight Co., Inc. manufactures and markets a wide range of personal care, household and specialty products, under the Arm & Hammer brand name and other well-known trademarks.

Contacts

Church & Dwight Co., Inc.

Rick Dierker, 609-806-1200

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Best’s Special Report: Insurer membership in Federal Home Loan Bank grows as Life/Annuity Companies capitalize on investment spreads

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — U.S. life/annuity (L/A) insurers increased their borrowing through the Federal Home Loan Bank (FHLB) program by 22% in 2022, as they looked to capitalize on enhanced yields in the higher interest rate environment, according to a new AM Best report.

 

U.S. insurance companies now represent nearly 9% of FHLB membership, following a 4% growth uptick last year by insurers. However, the Best’s Special Report notes that the vast majority of insurance companies do not have access to secured FHLB loans made available through the program. During 2022, only 22% of U.S. life/annuity (L/A) insurers had borrowing access, compared with nearly 7% of the property/casualty (P/C) segment and slightly less than 3% of health insurers. Borrowing in the P/C segment more than doubled to $11.2 billion in 2020 as a result of COVID-19 but has steadily declined and totaled $6.0 billion in 2022. Despite the uptick in industry borrowing, capacity remains available for most insurers across all segments.

 

“Borrowing grew in 2022 for life/annuity insurers as they sought to increase investment yields by capitalizing on the higher interest-rate environment,” said Kaitlin Piasecki, industry analyst, AM Best. “As for property/casualty insurers, their FHLB borrowing declined last year after peaking in 2020, when they sought extra liquidity as a cushion against the uncertainty brought on by the COVID-19 pandemic.”

 

The FHLB is composed of 11 regional cooperatives and are privately owned by their members. To gain membership, an insurer must actively participate in mortgage financing, be financially sound, and purchase FHLB capital stock. As members of the FHLB, insurers can apply for secured loans, known as advances, at lower rates. Historically, each insurance segment has had different reasons for using the FHLB.

 

“Life insurers use it mostly for spread/yield enhancement, while property/casualty and health insurers use it more for liquidity and short-term working capital/operations,” said Jason Hopper, associate director, AM Best.

 

AM Best estimates that 2022 new money bond portfolio yields were 5.1% for L/A insurers, a noteworthy bump from 3.6% in 2021. Insurers can borrow from the FHLB at more favorable rates than from commercial lenders, and re-invest that money into higher yielding assets, resulting in additional yield and excess spread over the cost of an FHLB advance.

 

To access the full copy of the report titled, “FHLB Life/Annuity Members Capitalize on High Rates for Spread Opportunities,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=337249.

 

To view a recent video discussion of AM Best’s report on the FHLB program, please go to http://www.ambest.com/v.asp?v=ambfhlb1023.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Kaitlin Piasecki
Industry Analyst
+1 908 285 3764
kaitlin.piasecki@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Jason Hopper
Associate Director, Industry Research & Analytics
+1 908 882 1896
jason.hopper@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

Categories
Business Economics Perks Regulations & Security

AM Best affirms Issue Credit Ratings of 321 Henderson Receivables V LLC

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of “aaa” (Exceptional) on the $74,646,000 Class A-1 8.00% Fixed Rate Asset Backed Notes, Series 2008-3 and the $9,389,000 Class A-2 8.00% Fixed Rate Asset Backed Notes, Series 2008-3 as well as the Long-Term IR of “a” (Excellent) on the $4,695,000 Class B 10.00% Fixed Rate Asset Backed Notes, Series 2008-3, issued by 321 Henderson Receivables V LLC (the issuer), a special purpose Nevada limited liability company. The outlook of these Credit Ratings (ratings) is stable.

The issuer was formed for the purpose of acquiring receivables from an affiliate; conducting activities required for maintaining and servicing the receivables; creating trust and/or other entities for the purpose of securitizing the receivables; issuing securities related to the securitization; and organizing other activities incidental to the performance of the aforementioned items.

 

Proceeds from the issuance of the notes, along with contributed equity capital, were used to purchase a pool of structured settlement and annuity receivables (receivables) from an affiliate and to fund the initial reserve requirement. The initial pool of receivables consisted of 1,844 contracts totaling approximately $189.2 million in payment obligations from 107 insurance companies. As of Aug. 31, 2023, the pool of receivables totaled approximately $55.2 million in payment obligations from 60 insurance companies. Nearly all the receivables were pursuant to a court order.

 

The overall rating actions reflect qualitative and quantitative considerations, including the default probabilities that are derived from stochastic modeling that incorporate updates on the Long-Term Issuer Credit Ratings (Long-Term ICRs) of the insurance carriers; the updated financial data; and remaining collateral information, including the reduced payment obligations of Guaranty Association Benefits Company, a not-for-profit captive insurance company formed for making payments to the payees and certificate holders of the liquidated Executive Life Insurance Company of New York. The transaction’s performance, both in terms of note balance paydown and receivable collection are in line with modeled expectations.

 

The ratings and the outlooks could be affected negatively if one or more of the following occurs: a reduction in the remaining scheduled payments; deterioration of the Long-Term ICR of the remaining insurance carriers; an increase in the level of the write-off activity; and a breach in ongoing surveillance or compliance benchmarks. However, the rating and the outlook of the Class B notes could be upgraded if there is significant improvement on the underlying cash flows.

 

These are structured finance ratings.

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

David Mautone
Senior Quantitative Specialist

+1 908 882 2098

david.mautone@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Wai Tang
Senior Director
+1 908 882 2388
wai.tang@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com