The Daily REITBeat | Friday, December 20th, 2024

Good Morning!

Futures deep in the red across the board at the time of this writing as talking heads focus on softening outlook for further interest rate cuts along with a potential government shutdown.

From Bloomberg

"US stocks were set to deepen losses as traders grappled with an increasingly softening outlook for interest-rate cuts and the threat of an American government shutdown.
The S&P 500 was heading for its biggest weekly drop since at least September as futures tied to the benchmark dipped 0.9%. Nasdaq 100 contracts fell 1.4%, with technology stalwarts such as Tesla Inc. and Nvidia Corp. giving way in early trading. Europe’s Stoxx 600 weakened 1.7% as Novo Nordisk A/S fell by the most on record on the back of disappointing data from a treatment trial.
Stock market volatility has spiked in recent days as a hawkish pivot by the Federal Reserve made traders question whether this year’s tech-fueled rally could extend further in a higher rates environment, despite a resilient US economy.
Friday’s personal consumption expenditures data for November, the Fed’s preferred measure of underlying inflation, will offer further clues on 2025’s rate path. For now, the swaps market is implying between one and two quarter-point reductions for next year, a decrease from a month ago when two cuts were fully priced."

In REIT News

JPM upgrades FRT ($125) and KRC ($49) to Overweight from Neutral
JPM downgrades HR ($19), KIM ($26) and LINE ($75) to Neutral from Overweight
PLYM acquired a portfolio of primarily small bay industrial properties in Cincinnati, OH for $20.1 million, which equates to an anticipated initial NOI yield of 6.8% noting that the portfolio consists of nine buildings totaling 258,082 sf that are currently 96.9% leased to 23 tenants with a weighted average lease term of approximately 2.75 years plus has a second tranche of this portfolio that is under contract for $17.9 million, which equates to an anticipated initial yield of 7.3%, and is expected to close in the first quarter of 2025 which consists of four buildings in Cincinnati totaling 240,578 sf that are currently 98.0% leased to nine tenants with a weighted average lease term of approximately 3.75 years
FCPT announced the acquisition of 1) P.F. Chang’s property located in a highly trafficked, strong retail corridor in Illinois for $4.8 million noting that the property is under a corporate triple net lease with approximately 5 years of term remaining and priced at a 7.4% cap rate on rent as of the closing date and exclusive of transaction costs; 2) MercyOne outpatient clinic property located in a strong retail corridor in Iowa for $2.8 million noting that the property is under a triple net lease with approximately five years of term remaining and priced at a 7.8% cap rate on rent as of the closing date and exclusive of transaction costs; and 3) two Riverview Health outpatient primary care properties located in highly trafficked corridors in Indiana for $13.5 million via sale leaseback and noted that the properties are under long term, triple net leases with a weighted average 12 years of term remaining that priced at a 7.3% cap rate on rent as of the closing date and exclusive of transaction costs
AIV closed on the sale of its interest in two investments in the Edgewater neighborhood of Miami, FL for a gross price of $204 million and at the time of closing, the Company retired $110 million of debt, previously carrying a weighted average rate of 8.6%, and received net proceeds of approximately $90 million plus declared a special cash dividend in the amount of $0.60/share to be paid on January 31, 2025 to holders of record as of January 14, 2025
STRW completed the acquisition of eight healthcare facilities, comprised of 1,111 beds, located in Missouri for $87,500,000
VICI announced that its limited partnership completed its public offering of $750 million in aggregate principal amount of 5.125% senior unsecured notes due 2031 and intends to use the net proceeds from the offering to repay its outstanding $750 million in aggregate principal amount of 3.500% senior notes due 2025
BXP signed an approximately 413,000 sf long-term lease renewal with Ropes & Gray at the Prudential Tower in Boston, MA which extends the lease through 2041
IIPR announced that on December 19, 2024, PharmaCann defaulted on its obligations to pay rent for the month of December under six of the eleven Leases, for properties located in Illinois, Massachusetts, Michigan, New York, Ohio and Pennsylvania where the total amount owed for these 6 properties, including base rent, property management fees and estimated tax and insurance payments, was $4.2 million and IIP is continuing discussions with PharmaCann regarding the leases and expects to enforce its rights under the leases aggressively, which may include, but is not limited to, commencing eviction proceedings as IIP deems necessary
CURB announced a special cash dividend of $0.25/share payable on January 16, 2025 to stockholders of record at the close of business on December 31, 2024
Yesterday morning, APLE declared a regular monthly cash distribution of $0.08/share and a special cash distribution of $0.05/share where the combined distribution of $0.13/share is payable on January 15, 2025, to shareholders of record as of December 31, 2024

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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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