The Daily REITBeat | Thursday, January 16th, 2025

"Pass the Test?"

Good Morning!

Futures mixed at the time of this writing as talking heads focus on 4Q earnings season, a big slate of economic data coming due this morning and next week’s inauguration.

From Bloomberg

"US stock futures rose Thursday, lifted by a fresh slew of earnings releases and a revival of Federal Reserve policy-easing bets.
Futures contracts for the Nasdaq 100 were up 0.3% while those on the S&P 500 rose 0.1%, setting up Wall Street to extend gains notched in the previous session when US core inflation came in a touch below forecasts. Sentiment got a further boost as Bank of America Corp. posted estimate-beating results, lifting its shares in premarket.
Technology companies including Nvidia Corp. and Super Micro Computer Inc. also rallied after a strong outlook from chipmaker Taiwan Semiconductor Manufacturing Co. reinforced hopes of resilient spending on artificial intelligence. On the downside, shares in UnitedHealth Group Inc. slid more than 4% after revenue fell short of expectations, dragging other health insurers lower.
European shares rose too, buoyed by luxury goods maker Richemont, which reported a jump in jewelry sales. Its results drove an index of European luxury stocks higher by the most since March 2022.
The market’s next test will be US initial jobless claims and retail sales figures due later Thursday. These will provide a broader picture of the health of the economy, with economists forecasting retail sales to have slowed slightly last month.
“What we want to see is pretty much a Goldilocks scenario of decent growth in the US but no strong re-acceleration,” said Amelie Derambure, a portfolio manager at Amundi Asset Management, referring to a scenario where the economy is in good shape but not hot enough to derail interest-rate bets.
“What we don’t want is something too crazy on the retail sales that would put pressure on the Fed,” she added."

In REIT News

UBS initiates PKST with a Buy rating ($15 price target)
Compass Point initiates STRW with a Buy rating ($14 price target)
Baird downgrades PDM to Neutral from Outperform (lower price target by $1 to $10)
NTST announced the closing of $275.0 million in additional financing commitments and amendments to its existing credit facilities agented by PNC Bank, Wells Fargo Bank, and Truist Bank which were also amended to remove certain financial covenants and provide for revised, improved pricing when the Company meets certain investment grade rating and leverage targets
DRH announced that its Board of Directors increased the size of the Board from eight to nine members and appointed Stephanie Lepori to the Board effective January 15, 2025
SAFE closed on a ground lease to facilitate the ground-up development of The Crawford, an affordable housing community in the Roseville area of Sacramento, CA
Yesterday, Fitch Ratings affirmed the ratings for CDP and its limited partnership, including the Long-Term Issuer Default Ratings at “BBB-“, 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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