The Daily REITBeat | Thursday, December 19th, 2024

Good Morning!

Futures in the green at the time of this writing as talking heads focus on yesterday’s Federal Reserve fallout following the 25bps cut and Chairman Powell’s comments during the press conference and their “cautious” stance heading into next year.

From Bloomberg

"US stocks are set for a partial recovery on Thursday, suggesting the selloff after the Federal Reserve’s hawkish pivot was overdone. The yen slid as the Bank of Japan left borrowing costs unchanged.
Futures contracts for the S&P 500 advanced 0.5% following the US benchmark’s biggest lost for a scheduled Fed decision day since 2001. Nasdaq 100 contracts rose 0.4%. Key gauges in Europe and Asia retreated as equity markets caught up with post-Fed moves in the US.
The Fed scaled back the number of cuts it sees in 2025 to two as Chair Jerome Powell said future easing would require fresh progress on inflation. The reaction interrupted this year’s stellar rally in US stocks, with S&P 500 still on course to notch more than 20% of gains due to optimism about artificial intelligence and the outlook for the economy under a Donald Trump administration.
While the severity of Wednesday’ reaction showed that equity markets were less prepared for the Fed’s announcement, the shift implied that profits could be stronger than anticipated in the near term, said Florian Ielpo, head of macro research at Lombard Odier Investment Managers.
“What we have seen is a little cold water poured on what is otherwise a decent economy,” John Bilton, JPMorgan Asset Management’s head of global multi-asset strategy, told Bloomberg TV. “I am constructive about next year. If I’m a bull, I have got to love a healthy pullback.”"

In REIT News

Evercore ISI initiates RHP with an Outperform rating ($135 price target)
VTR announced with Brookdale Senior Living that they have entered into a mutually benefit agreement to amend their triple-net master lease agreement where beginning January 1, 2026, Brookdale will continue to lease 65 high-performing communities, with a combined 4,055 units, for an annual base rent of $64 million under a long-term operating lease, a 38% increase above current cash rent
AHT extended its mortgage loan secured by the 226-room Le Pavillon Hotel located in New Orleans, LA as the loan had an initial maturity date in December of 2024 and has two additional one-year extension options, subject to the satisfaction of certain conditions, with a final maturity date in December 2027 noting that the loan has been extended with no paydown and continues to have an outstanding balance of $37.0 million
MPW reached an agreement with Viceroy Research LLC and its members to mutually settle and dismiss the defamation lawsuit originally filed in federal court on March 30, 2023 as the parties have agreed to keep the terms of the settlement confidential
CIO signed a 60,000 sf lease with an existing tenant at its premier Terraces property located in Dallas, TX which extends the tenant’s existing 44,000 sf space until 2036 and expands the tenant’s space by 16,000 sf and including the expansion space, which is expected to commence in early 2026, the property is now 95% leased plus with the recent commencement of a 29,000 sf tenant at Bloc 83 in Raleigh, NC, the office component of Bloc 83 has achieved 98% occupancy
DHC announced that Anthony Paula has been appointed Vice President and is a Vice President of The RMR Group whose responsibilities include overseeing the accounting, SEC reporting and corporate finance functions for DHC
Fitch Ratings upgraded SAFE and its wholly-owned subsidiary’s Long-Term Issuer Default Ratings and unsecured debt rating to “A-“ from “BBB+” plus affirmed its short-term issuer default rating and commercial paper rating at “F2” with a stable 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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