The Daily REITBeat | Friday, April 4th, 2025

Good Morning!

Futures in the red at the time of this writing as talking heads focus on a very busy economic calendar day, Chairman Powell’s speech this morning and Liberation Day tariffs and retaliation tariffs hitting the markets as the 10-year trades below 3.90%.

From Bloomberg

"Equities added to losses on Friday after the S&P 500 Index’s worst day since 2020. US markets are set to open in the red, with futures suggesting a 3% slide.
Traders further boosted their expectations for the Federal Reserve to cut interest-rates this year as fallout from US President Donald Trump’s tariffs convulsed markets for another day.
Money markets are fully pricing four quarter-point reductions by year end, with a more than 50% chance of a fifth — up from just three cuts before levies were announced. The rally in US Treasuries accelerated after China said it would impose a 34% tariff on all imports from the US, spurring fears of a global trade war. That pushed US 10-year yields below 3.90%, the lowest since before election day, and two-year rates fell to the lowest since September 2022.
With global financial markets still in a tailspin, bond investors will later turn to a monthly US payrolls report and a speech by Federal Reserve Chair Jerome Powell for clues on the state of the US economy and whether tariffs will shape the Fed’s stance on easing. Markets are already fully pricing in a quarter-point move by June, with a chance of a larger reduction."

In REIT News

BMO upgrades CSR ($77) and ELS ($78) to Outperform from Market Perform
BMO downgrades AVB to Market Perform from Outperform (lower price target by $10 to $220)
ESS announced YTD transaction activity commenting that it acquired 3 properties in Foster City and Menlo Park, CA for $345.5 million and sold 2 properties in Rancho Palos Verdes and Santa Ana, CA for $366.6 million
CTO entered into privately negotiated exchange agreements with certain holders of its 3.875% Convertible Senior Notes due April 15, 2025 noting that prior to the exchange agreements, the Notes had an aggregate principal amount of $51.0 million, representing approximately 3.8 million underlying shares based on the current conversion ratio of 73.8112 shares of CTO common stock per $1,000 principal amount of the Notes and in accordance with the terms of the exchange agreements, the Company exchanged $35.2 million aggregate principal amount of the Notes for 1,089,555 of newly issued shares of its common stock and $29.0 million in cash, including $0.6 million representing accrued interest
BHR announced its plans to transition the 415-room Sofitel Chicago Magnificent Mile to a franchise structure and under the franchise structure, the hotel will continue to be the Sofitel Chicago Magnificent Mile, but will be managed by Remington Hospitality under the existing terms of its Master Hotel Management Agreement with Braemar
Yesterday morning, S&P affirmed INVH’s “BBB” issuer and issue-level ratings on the company and revised its outlook to positive from stable
Yesterday morning, S&P affirmed AMH’s ratings, including its “BBB” issuer credit and issue-level ratings on its unsecured notes, its “BB+” issue-level preferred stock ratings and revised its outlook to positive from stable
Yesterday morning, EQIX announced the appointment of Harmeen Mehta as Executive Vice President and Chief Digital and Innovation Officer (CDIO) effective April 4 and will align technology capabilities with business strategy to drive the company’s digital transformation and innovation strategy, leveraging emerging technologies to enhance customer experience, improve operational efficiency and foster innovative business models

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David Auerbach & Mary Jensen

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David Auerbach
dauerbach@irrealized.com
214.492.3777

David Auerbach boasts over two decades of experience in the securities industry, specializing as an institutional trader with a focus on Real Estate Investment Trusts (REITs), Equity and Preferred stocks, MLPs, ETFs, and Closed End Funds.

Based in Dallas, TX throughout his entire career, David currently serves as the Chief Investment Officer for Hoya Capital, managing the Hoya Housing 100 ETF (Ticker: HOMZ) and The High Yield Dividend ETF (Ticker: RIET).

Previously, David held the position of Managing Director at Armada ETF Advisors, the sub-advisor for the Residential REIT ETF (Ticker: HAUS) and The Private Real Estate Strategy via Liquid REITs ETF (Ticker: PRVT). Additionally, he acts as a consultant with IRRealized, LLC, focusing on corporate access in the REIT industry.

David's industry journey includes roles at World Equity Group, Esposito Securities, and Green Street Advisors where he got his start in the REIT industry. At Esposito Securities, he played a crucial role in building the REIT/Real Estate platform and worked extensively with institutional investors, Equity REITs, and ETF issuers.

Throughout his career, David has been quoted by reputable publications such as Bloomberg, WSJ, Financial Times, REIT.com, and GlobeSt.com. He has also made notable appearances as a featured guest on networks like Yahoo Finance, TD Ameritrade, and Bloomberg.

David holds a BBA in Finance from the University of Texas at Austin (May 1999) and an MBA in Finance from Southern Methodist University (May 2005). He maintains FINRA Series 7, 24, 55, and 63 registrations.

In his leisure time, David is an avid traveler, often found crisscrossing the country in pursuit of attending as many Phish concerts as possible.

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