The Daily REITBeat | Friday, February 28th, 2025
"Some Core Data?"
From Bloomberg
- "S&P 500 futures edged higher as traders looked forward to a print of the Federal Reserve’s preferred inflation measure for clues on the outlook for interest rates.
- Contracts for the equity benchmark climbed 0.2%, signaling a modest rebound after the index erased the last of its 2025 gains on Thursday. A plunge in Bitcoin deepened as investors avoided riskier assets following President Donald Trump’s latest tariff threats. Worries about a trade war spread to oil, which slumped and headed for the biggest monthly loss since September.
- Attention turns later to the core personal consumption expenditures price index — which excludes often-volatile food and energy costs. The index probably rose 2.6% in the year through January, after an increase of 2.8% in December, according to Bloomberg economists. It likely ticked up to 0.27% monthly compared with 0.16% in December.
- A hotter-than-expected reading would prompt concern among investors, said Kevin Thozet, a portfolio advisor at Carmignac. “It would be another hint that there hasn’t been much progress on US inflation since June 2024,” he said."
In REIT News
- RBC upgrades WELL to Outperform from Sector Perform (raise price target by $22 to $168)
- AHR, ALEX, CUBE, DRH, GMRE, GNL, PGRE announced quarterly earnings
- BRX priced $400 million of 5.20% senior notes due 2032 and intends to use the net proceeds for general corporate purposes, which may include repayment of outstanding indebtedness under its unsecured revolving credit facility
- FVR announced intraquarter net investment activity for 1Q’25 noting that 1) From January 1, 2025 through the date of this release, we acquired 14 new properties for $35.3 million at a weighted average initial cash capitalization rate of 7.8% and a weighted average lease term of 12.7 years; 2) The acquisitions were diversified across 7 industries, 11 tenants, and 11 states, including 5 new tenants and 2 new states. Investment grade tenants accounted for approximately 34% of the annualized base rent (“ABR”) from these acquisitions; 3) As of the date of this release, we have 6 properties under contract for an additional $20.7 million at a weighted average initial cash capitalization rate of 8.2% and a weighted average lease term of 12.6 years. The properties are diversified across 5 industries, 5 tenants, and 4 states, with investment grade tenants representing approximately 12% of the ABR; 4) During February 2025 we sold one property for gross sales proceeds of $2.1 million at a 6.9% cash capitalization rate, recognizing a $0.05 million gain over our original purchase price
- AHT announced that the Board of Directors has approved significant reductions to board and management compensation as part of its broader "GRO AHT" initiative whereby compensation for board members was reduced by 50%, and the Board of Directors has currently been reduced from nine members down to seven plus incentive awards granted to executive management and other associates have been reduced by more than 50% in aggregate relative to recent years
- Moody’s downgrades FSP’s corporate family rating and senior unsecured rating to “Caa1” from “B3” and revised its outlook to stable from negative
- Yesterday, S&P affirmed EPRT’s ratings, including its “BBB-“ issuer credit rating on the company and its issue-level rating on its senior unsecured notes and revised its outlook to positive from stable
- Yesterday, Fitch Ratings affirmed the ratings of IRT and its operating partnership, including the Issuer Default Rating and unsecured debt, at “BBB” with a stable outlook
Download The REIT Beat here!
The Daily REITBeat 2-28-25.pdf
Welcome your comments and feedback.
Have a great day!
David Auerbach & Mary Jensen
Subscribe here to receive The Daily REITBeat newsletter every morning.
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.
Confidentiality Notice: The content in this article is provided for informational purposes only and is not intended to be, nor should it be construed or used as an offer to sell, or a solicitation of any offer to buy, any security. Additionally, the information herein should not be relied upon as recommendations or financial planning advice. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. This email, including attachments, may include non-public, proprietary, confidential or legally privileged information. If you are not an intended recipient or an authorized agent of an intended recipient, you are hereby notified that any dissemination, distribution or copying of the information contained in or transmitted with this email is unauthorized and strictly prohibited. If you have received this email in error, please notify the sender by replying to this message and permanently delete this e-mail, its attachments, and any copies of it immediately. This message is intended only for the addressee. If you are not the intended recipient, please notify the sender by e-mail reply and delete this message. You may not copy, disclose, distribute or otherwise make use of this message or its contents for yourself or for any other person, as that action may be unlawful. You should not retain, copy or use this e-mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person. All data is reported from Bloomberg, SNL, or Hoya Capital unless otherwise indicated. While such information is believed to be reliable, no representation or warranty is made concerning the accuracy of any information presented. Statements herein that reflect projections or expectations of future financial or economic performance are forward-looking statements. Such “forward-looking” statements are based on various assumptions, which assumptions may not prove to be correct. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or actual performance. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be accurate. Actual results for any period may or may not approximate such forward-looking statements. No representations or warranties whatsoever are made by Hoya Capital as to the future profitability of investments recommended by these organizations.
Subscribe here to receive The Daily REITBeat newsletter every morning.
Last updated: 2025-05-12 - v0.3