The Daily REITBeat | Known vs. Unknown

"Wednesday, April 2nd, 2025"

Good Morning!

Futures in the red at the time of this writing as talking heads focus on “Liberation Day” and President Trump’s announcement at 4pm eastern on tariffs with some relevant economic data coming due over the next 72 hours.

From Bloomberg

"Wall Street was set to open weaker and Treasuries held near one-month highs in the hours before President Donald Trump’s tariffs reveal, as speculation swirled over the details of the proposed trade action.
S&P 500 futures dropped 0.5%. Technology stocks slid in premarket trading, with Tesla Inc. and Palantir Technologies Inc. both shedding more than 2%. Newsmax Inc. retreated 25%, pausing a blinding IPO rally. Europe’s Stoxx 600 Index fell 0.8%, with healthcare stocks losing ground as mass layoffs at the US Department of Health sowed uncertainty over the outlook for vaccines and gene therapies.
The yield on 10-year Treasuries slipped two basis points after falling on Tuesday to the lowest since early-March, while the dollar retreated and gold traded just short of its recent record.
Trump is due to reveal his tariff plans in the White House Rose Garden just as US markets close at 4 p.m. Several proposals are said to be under consideration, including a tiered tariff system with a set of flat rates for countries, as well as a more customized reciprocal plan. The White House has said the tariffs would take immediate effect, but that Trump was open to subsequent negotiation.
Uncertainty over the levies has fueled volatile swings on Wall Street this week, as traders fear that lengthy and potentially fractious negotiations with trade partners will weigh on economic growth and pressure companies’ profits.
“There isn’t anywhere to purely hide, because of the huge uncertainty that is in the market at the moment,” said Helen Jewell, chief investment officer of fundamental equities EMEA at BlackRock Inc.
Jewell does not expect the confusion to dissipate after Trump’s announcement. “It is very much the opposite,” she said. “It just keeps that risk in the market and it kicks that risk can down the road.”"

In REIT News

SMA announced the pricing of its public offering of 27,000,000 shares of common stock at a price to the public of $30.00/share raising gross proceeds of $810 million which is expected to begin trading today and the company intends to use the net proceeds from the offering to redeem 100% of its issued and outstanding Series A Preferred Stock, pay down existing debt under its credit facility, repay an acquisition facility, fund external growth with property acquisitions, and fund other general corporate uses
O priced $600 million of 5.125% senior unsecured notes due 2025 and intends to use the net proceeds for general corporate purposes, which may include, among other things, the repayment or repurchase of the Company’s indebtedness (including the $500.0 million of outstanding 3.875% notes due 2025, which matures on April 15, 2025, and/or borrowings under the Company’s revolving credit facility and commercial paper programs), foreign currency swaps or other hedging instruments, the development, redevelopment and acquisition of additional properties, acquisition or business combination transactions, and the expansion and improvement of certain properties in the Company’s portfolio
LINE announced its acquisition of three warehouses totaling approximately 24 million cubic feet and 85 thousand pallet positions from Bellingham Cold Storage noting that the acquired assets include three locations on the west coast of Washington state: the Bellingham Waterfront Warehouse Center, the Orchard/I-5 Warehouse Center and the Burlington Dry location
CTRE announced the acquisition of a skilled nursing and assisted living campus facility located in Los Alamitos, CA which includes a 150-bed skilled nursing facility and a 140-bed residential care facility for the elderly plus acquired a 160-bed residential care facility for the elderly located in Concord, CA with a total investment amount of approximately $55 million
NHI announced that it has invested $63.5 million, inclusive of transaction costs, for the acquisition of a portfolio of six memory care communities with 205 units in Nebraska operated by Agemark Senior Living noting that the communities are operated under the CountryHouse brand which Agemark established in 1997 exclusively for residents requiring personalized memory care and the communities are in a master lease with a 15-year maturity and two five-year renewal options at an initial yield of 8.0% plus annual fixed escalators
EQC announced that its Board of Trustees has authorized the Company’s final cash liquidating distribution of $1.60/common share which will be paid on April 22, 2025 to shareholders of record on April 11, 2025 as this brings the aggregate cash liquidating distributions to $20.60 per common share, inclusive of the $19.00 per share paid in December plus intends to file a Form 25, or Notification of Removal from Listing, with the Securities and Exchange Commission and the New York Stock Exchange relating to the delisting of the common shares on or about April 11, 2025 and its last day of trading on NYSE will be April 21, 2025
EGP, FR, PLD, STAG (Industrial REITs Group) have updated their standardized methodology for calculating key non-GAAP property metrics to improve comparability across the sector plus reaffirmed its approach to determining property stabilization, occupancy, rent change, and customer retention while the annual same-store portfolio will continue to include only properties that were stabilized in both the current and prior periods presented and criteria to exclude value-added and redevelopment properties from the same store portfolio was also reaffirmed

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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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