The Daily REITBeat | Monday, May 12th, 2025

"A Major De-Escalation"

Good Morning!

Futures deep in the green at the time of this writing as talking heads focus on tariff trade progress with China as a starting agreement is in place to de-escalate the trade war. With a busy pivotal economic calendar week ahead, the news is welcome kicking off the week.

From Bloomberg

"Investors rushed back into US assets, powering a more than 3% surge in S&P 500 futures, after China and the US agreed to cut tariffs and de-escalate a trade war that had sown turmoil in global markets. Treasuries and gold tumbled.
Risk appetite on Wall Street was reignited after Treasury Secretary Scott Bessent hailed the trade discussions as “very robust and productive.” US megacap tech stocks, which had been hard hit this year, were on track to tally some of the biggest gains, with Nasdaq 100 futures poised to re-enter a bull market. Nvidia Corp., Amazon.com Inc., Apple Inc. and Tesla Inc. all rose more than 5% in premarket trading.
The dollar topped a one-month high. Gold fell more than 3%. The 10-year Treasury yield climbed seven basis points to 4.45% as traders pushed back the timing of possible interest-rate cuts.
The breakthrough in the China-US talks delivers a shot of relief to investors who were bracing for the possibility that a spiraling trade war between the world’s biggest economic powers might cause a global recession. The countries will lower tariffs on each other’s products for 90 days, according to a joint statement released in Geneva.
“The risk of a deep and protracted US recession has gone,” said Guy Miller, chief market strategist at Zurich Insurance Co. “From a company earnings perspective the headwind to revenues has clearly diminished.”"

In REIT News

Jefferies upgrades HLT to Buy from Hold (raise price target by $68 to $296)
Jefferies upgrades MAR to Buy from Hold (raise price target by $77 to $303)
MAC announced 1Q earnings while LAND and SPG announce quarterly earnings after the close of trading
CTRE closed the acquisition of Care REIT plc, a United Kingdom-based healthcare real estate investment trust listed on the London Stock Exchange and noted that the transaction, first announced on March 11, 2025, marks its entrance into the UK market and represents a strategic step in the Company’s mission to expand and diversify its portfolio of healthcare real estate assets as it adds 132 care homes comprising approximately 7,500 beds and two healthcare facilities leased to the UK’s National Health Service, located throughout England, Scotland, and Northern Ireland and all properties are subject to long-term, triple-net leases across 14 operators, with a weighted average remaining lease term of approximately 20.2 years and annual inflation-based rent escalators, most with a 2% floor and 4% cap
On Friday, S&P raised OPI’s issuer credit rating to “CCC-“ from “SD” (Selective Default) and its issue-level ratings on the senior unsecured notes that were part of the debt exchange to “CC” from “D” with a negative outlook

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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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