The Daily REITBeat | Monday, December 23rd, 2024

"Subdued Sessions?"

Good Morning!

Futures mixed at the time of this writing as talking heads recover from a crazy week last week and assess futures outlook for potential economic growth, inflation, and interest rate cuts in 2025. A busy economic calendar on tap today as well.

From Bloomberg

"American equity futures were steady in subdued trading as traders assessed the outlook for economic growth and interest rates. The dollar advanced after a US government shutdown was averted.
Contracts on the Nasdaq 100 added 0.4% and those on the S&P 500 were little changed following solid gains on Wall Street on Friday after the so-called core personal consumption expenditures price index increased at the slowest pace since May. Europe’s stock benchmark edged higher.
Investors are taking a step back after a stream of robust US economic data saw the Federal Reserve scale back the number of cuts it anticipates in 2025. The PCE data reignited hopes of deeper rate cuts, though overall sentiment remains cautious as investors brace for the prospect of sweeping global tariffs imposed by US President-elect Donald Trump, and as China continues to see a lackluster economic recovery.
“There are still hopes that the US stock markets in particular will end 2024 with a positive undertone,” Dana Malas, a strategist at SEB, wrote in a note. “After two explosive weeks of central banking and news, to say the least, it is time for the market to recharge batteries and update forecast models for the world that begins on January 20 with Donald Trump in the White House.”"

In REIT News

BOCOM International Securities initiates PLD with a Buy rating ($134.94 price target)
Raymond James upgrades PCH ($45) and WY ($32) to Outperform from Market Perform
BTIG downgrades IIPR to Neutral from Buy
Alliance Global Partners downgrades IIPR to Neutral from Buy (lower price target by $55 to $75)
On Friday, Morningstar upgraded BXP ($91), EQR ($80), EXR ($165), KIM ($26.50) and PLD ($125) to Buy from Hold
On Friday, Piper Sandler downgraded IIPR to Underweight from Neutral (lowered price target by $48 to $70)
On Friday, Compass Point downgraded IIPR to Neutral from Buy (lowered price target by $47 to $78)
STRW announced that it entered into a Purchase and Sale Agreement on December 20th with an unaffiliated seller with respect to six Healthcare Facilities located in Kansas comprised of five skilled nursing facilities and one assisted living facility with 354 licensed beds for $24 million payable at the closing
On Friday, FCPT announced the acquisition of nine American Family Care properties located in strong retail corridors in Alabama (7) and Tennessee (2) for $21.2 million noting that the properties are corporate-operated under long term, triple net leases with approximately 14 years of term remaining and priced at a cap rate in range with previous transactions
On Friday, APLE published its annual Corporate Responsibility Report, which details the Company’s environmental, social and governance performance, strategy and initiatives and features its commitment to environmental sustainability, corporate employees, hotel associates and guests, communities, and other stakeholders
On Friday, Moody’s downgraded KRC’s limited partnership’s backed senior unsecured rating and issuer rating to “Baa3” from “Baa2” and its backed senior unsecured shelf rating was downgraded to “(P)Baa3” from “(P)Baa2” while raising its outlook to stable from negative
On Friday, Moody’s upgraded BRX operating partnership’s issuer and senior unsecured debt ratings to “Baa2” from “Baa3” and its senior unsecured debt shelf rating to “(P)Baa2” from “(P)Baa3” and revised its outlook to stable from positive

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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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