The Daily REITBeat | Monday, April 7th, 2025

"Selloff Stampede?"

Good Morning!

Futures deep in the red at the time of this writing as talking heads focus on more tariff fallout hitting the markets with no end in sight.

From Bloomberg

"A stock selling stampede abated as traders boosted expectations for Federal Reserve rate cuts amid economic fears just days ahead of President Donald Trump’s deadline for reciprocal tariffs to take effect.
Futures on the S&P 500 lost less than 2% on Monday, trimming most of an earlier slide of about 5.5%. A $9.5 trillion wipeout in global equity value put the US equity benchmark on the brink of a bear market. Investors have dumped risk and snapped up bonds, with two-year yields tumbling as much as 22 basis points before paring the move. Markets priced 125 basis points of easing by year end, equivalent to five quarter-point cuts.
The repricing ‘reflects the fear sweeping global markets, with Trump showing little appetite to back down on aggressive trade tariffs. Wall Street billionaires Bill Ackman and Stanley Druckenmiller slammed Trump’s decision to launch expansive global tariffs, and JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon urged a quick resolution.
The magnitude of moves across equities, rates, and many commodities is resulting in hedge funds being hit with some of their largest margin calls since the Covid pandemic. The good news is that this forced de-risking may be near completion, which could offer US stocks the chance for a rebound in the American session when cash trading gets going."

In REIT News

Wells Fargo initiates NTST with an Overweight rating ($18 price target)
Wedbush upgrades HR to Neutral from Underperform (raise price target by $2 to $18)
Wolfe Research upgrades CUZ to Outperform from Peer Perform ($31 price target)
Piper Sandler downgrades EGP to Neutral from Overweight (lower price target by $43 to $175)
Piper Sandler downgrades TRNO to Neutral from Overweight (lower price target by $17 to $61)
Scotiabank downgrades PLD to Sector Underperform from Sector Outperform (lower price target by $36 to $97)
On Friday, Morningstar upgraded ESRT ($9.50) and MAR ($260) to Buy from Hold
On Friday, Morningstar downgraded AMT to Hold from Buy (maintain $237 price target)
DOC announced that Peter Scott has resigned as the Company’s Chief Financial Officer as HR announced that its Board of Directors has unanimously appointed Peter A. Scott to be the Company’s President and Chief Executive Officer following an extensive and rigorous search process as he will be based at the Company’s Nashville headquarters and assume his new role on April 15, 2025 plus Mr. Scott is expected to be added to the Board following the Company’s 2025 annual meeting of stockholders while Connie Moore, who has served as Interim President and CEO of the Company since November 2024, will transition out of that role and continue to serve on the Board
PLYM announced activity update for the first quarter of 2025 noting that 1) leases commencing during the first quarter ended March 31, 2025, all of which have terms of at least six months, totaled an aggregate of 2,437,267 square feet which included 1,540,756 square feet of renewal leases and 896,511 square feet of new leases and when including the St. Louis lease, the overall rental rates would have increased 9.6% on a cash basis and new leases would have increased 0.9% on a cash basis; 2) Same store occupancy at March 31, 2025, was 94.7%. Total portfolio occupancy at March 31, 2025, was 94.3% which reflects changes from last quarter including a 210-basis-point positive impact from the St. Louis lease, a 45-basis-point positive impact from leasing in in Cleveland, a 15-basis-point positive impact from acquisitions in Cincinnati and Atlanta markets and a net 70-basis-point negative impact from other leasing activity in the quarter; 3) During the first quarter of 2025, Plymouth closed on the acquisition of six industrial buildings totaling 801,161 square feet for a total of $65.1 million and a weighted average initial estimated net operating income (“NOI”) yield of 6.8%
IRM announced that Gary Aitkenhead has joined the company as Executive Vice President and General Manager, Data Centers who will lead commercial and operational activities for the Data Centers business globally, reporting to Mark Kidd, Executive Vice President and General Manager, Asset Lifecycle Management & Data Centers, and joins its Executive Team
On Friday, FCPT announced the acquisition of a Burger King property located in a strong retail corridor in Kentucky for $2.1 million from a previously announced sale-leaseback transaction with Ampler Restaurant Group noting that the property is franchisee-operated under a long-term, triple net lease with 20 years of term and the Ampler Restaurant Group portfolio was priced at a 6.8% cap rate on rent as of the closing date and exclusive of transaction costs

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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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