The Daily REITBeat | Thursday, February 27th, 2025

"Are We Reassured??"

Good Morning!

Futures at the time of this writing as talking heads

From Bloomberg

"US equity futures rose as traders awaited a batch of economic data for clues on the interest-rate outlook and after Nvidia Corp.’s earnings reassured investors on the outlook for AI chip demand.
Contracts on the S&P 500 and the Nasdaq 100 were up at least 0.7%. Nvidia advanced 2.2% in premarket trading after reporting a fourth-quarter earnings beat and giving a forecast that mostly met market expectations. Other members of the Magnificent Seven cohort were also higher, with Meta Platforms Inc., Tesla Inc. and Amazon.com Inc. rising more than 1%.
Initial jobless claims and revised fourth-quarter gross domestic product numbers feature in a flurry of readings due later that investors will parse for any further evidence of slowing growth. Money markets have boosted Federal Reserve easing bets to fully price two quarter-point cuts this year compared to just one reduction two weeks ago."

In REIT News

Raymond James upgrades PEB to Outperform from Market Perform ($14 price target)
Barclays upgrades KRC to Overweight from Equalweight (raise price target by $2 to $44)
BHR, EPR, EQC, HHH, INVH, MAC, MPW, NSA, PEB, PLYM, PSTL, SITC, STRW, SUI, SVC, UMH announced quarterly earnings
AHR, ALEX, CUBE, DRH, GMRE, GNL, PGRE announce earnings after the close of trading
PDM announced the appointments of Deneen Donnley, Stephen Lewis and Jeffrey Donnelly to its Board of Directors and with the appoints, the Board now consists of ten members
AVB announced that it is under contract with BSR Real Estate Investment Trust to acquire two apartment communities in the Austin metropolitan area and six apartment communities in the Dallas-Fort Worth metropolitan area noting that the acquisition of the Austin Assets is expected to close on or around March 31, 2025, for an aggregate purchase price of $187.0 million in cash funded with disposition proceeds while the acquisition of the Dallas Portfolio is expected to close in the second quarter of 2025 for a stated aggregate purchase price of $431.5 million, which will take the form of a cash payment of approximately $193.0 million, a portion of which will be used by BSR Trust for the repayment of existing indebtedness relating to the Dallas Portfolio with the remainder used for the repayment of other indebtedness, payment of transaction expenses and general corporate purposes, and the issuance to participating holders of BSR Class B Units of approximately $238.5 million of DownREIT Units, valued at $225 per unit, in a newly formed subsidiary partnership of the Company and reaffirms 2025 guidance ranges
EQC closed on the sale of its last remaining property, 1225 Seventeenth Street, a 709,402 square foot office property in Denver, Colorado, for a gross sale price of $132.5 million, on February 25, 2025 noting that the net purchase price was approximately $124.4 million after credits primarily for contractual lease costs and with this sale of its last remaining property, the Company is also updating the estimated aggregate shareholder liquidating distribution range from an estimated aggregate shareholder liquidating distribution range of $20.00 to $21.00 per common share previously announced on November 15, 2024, to an estimated aggregate shareholder liquidating distribution range of $20.55 to $20.70 per common share, inclusive of the initial liquidating distribution of $19.00 per common share paid by the Company on December 6, 2024
Yesterday, S&P Global placed SUI’s ratings, including its “BBB” issuer credit rating, on CreditWatch with positive implications which reflects its view that leverage will be materially reduced, with a significant portion of the proceeds expected to be used to repay debt, following the close of the transaction, which is expected to be in the second quarter of 2025

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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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