The Daily REITBeat | Monday, March 31st, 2025

"A Bruising Quarter"

Good Morning!

Futures in the red at the time of this writing as talking heads focus on the end of the first quarter along with Liberation Day a couple of days from now with tariff uncertainty weighing on the markets. 10-year hovers around 4.198%.

From Bloomberg

"Global stock markets tumbled, with S&P 500 futures heading for a 1% loss on the final day of a bruising quarter, on intensifying worries about the impact of US tariffs. Gold topped a record and Treasuries rallied.
Nasdaq 100 contracts dropped 1.4%. Nvidia Corp., Palantir Technologies Inc. and Tesla Inc. sank more than 3% in premarket trading. Europe’s Stoxx 600 index slid 1.2% and Asian stocks suffered sharp losses, with the Japan’s Nikkei 225 index losing 4% and Taiwan’s stock index falling into a correction.
The risk that tariffs will hurt the global economy has propelled the S&P 500 to a 5.1% plunge in the first quarter, which would be the worst since 2022 and wiped about $5 trillion off the value of US equities since late February.
Goldman Sachs Group Inc.’s David Kostin cut his S&P 500 target for a second time this month. He expects the benchmark to end the year around 5,700 points versus his previous estimate of 6,200, citing a higher recession risk and tariff-related uncertainty.
“It’s all about the tariff uncertainty,” Jefferies strategist Mohit Kumar said. “The negative scenario for the market would be that April 2 just marks the starting point of negotiation, and we have an extended period of negotiations where there is not much clarity on the tariff structure.”"

In REIT News

Compass Point downgrades IIPR to Sell from Neutral (lower price target by $11 to $50)
On Friday, JPM resumed GLPI with a Neutral rating ($54 price target)
On Friday, ARC Independent Research upgraded AMT to Buy from Hold (raised price target by $10 to $235)
BXP announced that its operating partnership has (1) amended its existing unsecured revolving credit facility to extend its maturity date and increase its revolver borrowing capacity by $250 million to $2.25 billion, (2) extended its $700 million unsecured term loan facility, and (3) increased the size of its unsecured commercial paper program by $250 million to $750 million
On Friday, IIPR announced a significant tenant replacement and renewal initiative aimed at enhancing the performance of its real estate portfolio and driving long-term value for shareholders as this initiative focuses on strengthening tenant credit profiles and optimizing occupancy of the Company’s properties to align with evolving market demands noting that it declared each of the 4Front Leases, the Gold Flora Leases, and the TILT Leases in default where contractual base rent, property management fees and estimated tax and insurance payments owed as of March 28, 2025, for each of the 4Front Leases, the Gold Flora Leases, and the TILT Leases, totaled $9.0 million, $1.7 million, and $2.4 million, respectively and it will take action to pursue its rights under such leases aggressively, which may include, but is not limited to, commencing eviction proceedings as the Company deems necessary
On Friday, FCPT announced the acquisition of six newly constructed Whataburger properties located in strong retail corridors in Alabama for $16.8 million from MWB Restaurants via sale-leaseback noting that the properties are franchisee-operated under long term, triple net leases with approximately 20 years of term remaining and priced at a 6.8% cap rate on rent as of the closing date and exclusive of transaction costs
On Friday, S&P raised all of WELL’s ratings, including its issuer credit rating, to “A-“ from “BBB+” with a stable outlook

Download The REIT Beat here!

The Daily REITBeat 3-31-25.pdf

Welcome your comments and feedback.

Have a great day!

David Auerbach & Mary Jensen

Subscribe here to receive The Daily REITBeat newsletter every morning.

« More of The Daily REITBeat

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.

Confidentiality Notice: The content in this article is provided for informational purposes only and is not intended to be, nor should it be construed or used as an offer to sell, or a solicitation of any offer to buy, any security. Additionally, the information herein should not be relied upon as recommendations or financial planning advice. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. This email, including attachments, may include non-public, proprietary, confidential or legally privileged information. If you are not an intended recipient or an authorized agent of an intended recipient, you are hereby notified that any dissemination, distribution or copying of the information contained in or transmitted with this email is unauthorized and strictly prohibited. If you have received this email in error, please notify the sender by replying to this message and permanently delete this e-mail, its attachments, and any copies of it immediately. This message is intended only for the addressee. If you are not the intended recipient, please notify the sender by e-mail reply and delete this message. You may not copy, disclose, distribute or otherwise make use of this message or its contents for yourself or for any other person, as that action may be unlawful. You should not retain, copy or use this e-mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person. All data is reported from Bloomberg, SNL, or Hoya Capital unless otherwise indicated. While such information is believed to be reliable, no representation or warranty is made concerning the accuracy of any information presented. Statements herein that reflect projections or expectations of future financial or economic performance are forward-looking statements. Such “forward-looking” statements are based on various assumptions, which assumptions may not prove to be correct. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or actual performance. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be accurate. Actual results for any period may or may not approximate such forward-looking statements. No representations or warranties whatsoever are made by Hoya Capital as to the future profitability of investments recommended by these organizations.