The Daily REITBeat | Monday, February 3rd, 2025

"Tumbling Dice"

Good Morning!

Futures deep in the red at the time of this writing as talking heads focus on President Trump’s trade tariffs being imposed on Canada, Mexico and potentially the EU and the impact on markets and the consumer.

Buckle in for a potentially rough week during earnings season.

From Bloomberg

"The dollar surged and stocks tumbled as the beginning of US tariffs ushered in a trade war threatening economic growth around the world.
The Bloomberg Dollar Index jumped 0.9%, trading near a two-year high, before paring some of the advance. President Donald Trump announced tariffs on Canada, Mexico and China, and warned that European levies are coming. The Canadian dollar fell to its lowest since 2003 and the euro weakened.
The impact of tariffs ricocheted across global markets. S&P 500 futures slid 1.6%, while US oil prices climbed on worries about a disruption to supply. European carmaker shares fell, with Volkswagen AG and Stellantis NV shedding more than 5%. Crypto was also hammered as Ether plunged 11% in a broad move away from risky assets.
Trump’s move is the most extensive act of protectionism taken by a US president in almost a century, with knock-on effects on everything from inflation to geopolitics and economic growth. Goldman Sachs Group Inc. strategists said there’s a risk of a 5% slump in US stocks because of the hit to corporate earnings, while RBC Capital Markets estimated the range at 5% to 10%.
“He seems to be like a poker player who’s betting his whole stash on the first hand,” Steven Englander, global head of G-10 FX research at Standard Chartered Plc, told Bloomberg TV on Monday. “The market just wasn’t prepared for it.”"

In REIT News

Raymond James downgrades PLD to Market Perform from Outperform
DOC and EQR announce earnings after the close of trading
DHC completed the $159.0 million sale of MUSE, a 186,000 sf, three building life science property located in Torrey Pines, San Diego where at the time of sale, the property was 49% leased, with a weighted average lease term of over eight years and the Company plans to use the proceeds from the sale to pay down its senior secured notes due in January 2026
BDN announced that FS Investments entered into a 117,000 sf, 16-year lease for the Philadelphia-based alternative asset manager’s new global headquarters at 3025 JFK Blvd located in Schuylkill Yards
AHT announced several revenue-focused initiatives have been fully implemented as part of the broader "GRO AHT" plan including 1) optimizing food and beverage offerings to increase profitability; 2) streamlining parking operations and dynamic offerings to drive additional revenue; 3) revamping gift shop and corner store product selections and pricing; and 4) introducing or adjusting fees in applicable markets to capture untapped revenue opportunities
On Friday, CBL announced that it had closed on the sale of Monroeville Mall and Annex in Monroeville, PA, for $34 million in cash where approximately $7.1 million of the net proceeds was utilized to reduce the outstanding principal of the Company’s outparcel and open-air center loan to $333.0 million thus allowing for the release of a collateral parcel as part of the sale
On Friday, FCPT announced that it entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement with a group of existing lenders which increases the overall size of the facility from $765 million to $940 million by increasing the revolving credit facility capacity to $350 million and entering into a new $225 million term loan as both the Term Loan and revolving credit facility mature in February 2029, which may be extended up to one-year at the Company’s discretion, subject to certain conditions and the Term Loan will be used, in part, to pay down $150 million of loans maturing in November 2025 plus the lenders agreed to provide a one-year extension option for the $100 million of term loans maturating in November 2026 at the Company’s discretion, subject to certain conditions

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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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