The Daily REITBeat | Friday, March 21st, 2025

"Holy Heathrow Moly"

Good Morning!

Futures in the red at the time of this writing as talking heads focus on the global travel meltdown happening today at London’s Heathrow airport due to an electrical fire closure forcing the airport to close and disrupt global air travel potentially for the next couple of days. How will this trickle down into the next earnings reports for major airlines??

Earnings, Fed, and triple-witching also getting a lot of coverage.

From Bloomberg

"Global stocks stumbled as a batch of downbeat corporate earnings fanned fresh concerns in a market that’s already grappling with the prospect of a damaging US trade war.
S&P 500 futures dropped about 0.4%. FedEx Corp. tumbled 8% in pre-market trading after cutting earnings forecasts as inflation and uncertain demand for shipments squeeze the parcel company’s bottom line. Nike Inc. slid about 6% as it signaled declines in profitability, in part due to US tariffs on products from China and Mexico.
The dour earnings add to concerns over a worsening global economic outlook, especially ahead of President Donald Trump’s April 2 deadline for a series of broad reciprocal tariffs. While the Federal Reserve has indicated it sees room to cut interest rates, many economists fear the inflationary impact of tariffs will hinder central banks from delivering support to slowing economies.
“The Fed revised their growth forecast lower earlier this week, so the whole street is moving their forecast lower. But they could have further to go,” said Michael Metcalfe, head of macro strategy at State Street Global Markets. “We just need to see whether what we’ve seen so far this year is the start of something more serious in terms of slow growth.”"

In REIT News

Morgan Stanley upgrades HST to Equalweight from Underweight (lower price target by $1 to $15)
Truist Securities downgrades RLJ to Hold from Buy (lower price target by $1 to $10)
AHT announced that Remington, its largest property manager, has fully implemented property-level headcount reductions, reduced travel expenses, changed the PTO policy for field associates, and reduced contracted services and centralized expenses allocated to the Company’s properties as part of its ongoing efforts to enhance Hotel EBITDA which reflect Remington’s commitment to helping execute on "GRO AHT," the Company’s transformative initiative, aimed at driving $50 million in annual run-rate EBITDA improvement and significantly increasing shareholder value
DHC announced that it has elected Alan Felder to its Board of Trustees as an Independent Trustee effective immediately
SPG announced that Allan B. Hubbard is retiring from the Board of Directors effective May 14, 2025 and will not stand for re-election to the Board at its upcoming Annual Meeting
Moody’s placed SUI’s limited partnership’s “Baa3” issuer rating and backed senior unsecured rating plus its stable outlook on review for upgrade following the sale of its marina business to Blackstone
Yesterday morning, RLJ announced that Sean M. Mahoney, the Company’s Executive Vice President and Chief Financial Officer, will be retiring in May of this year

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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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