The Daily REITBeat | Thursday, January 23rd, 2025

"Mixed Signals?"

Good Morning!

Futures mixed at the time of this writing as talking heads focus on corporate earnings, treasury yields, dollar/bitcoin movement and President Trump’s first few days in office.

From Bloomberg

"Stocks took a breather on Thursday, stalling a three-day rally that had taken US and European stocks to within striking distance of all-time highs.
US equity futures slipped after the S&P 500 closed on the brink of record peak, propelled by optimism over artificial intelligence and a batch of earnings from corporate heavyweights. Contracts on the Nasdaq 100 fell 0.5% and those on the S&P 500 were down 0.2%.
A rally on Wall Street showed signs of flagging as investors took stock of President Donald Trump’s first few days in office. While his move to boost AI spending buoyed tech megacaps on Wednesday, the risk of tariffs on major trading partners still weighs on sentiment. The S&P 500 index has climbed about 5% since Trump’s election victory on Nov. 6.
“We continue to expect near-term volatility as markets react to incoming Trump headlines, and see negative impact on targeted regions if the administration follows through with the proposed tariffs,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “But we also believe US equities have room to grind higher as growth momentum continues.”
Focus next turns to US jobless-claims data, as well as Trump’s address at the World Economic Forum in Davos and fourth-quarter earnings reports from General Electric Co. and Texas Instruments Inc.
American Airlines Group Inc. slid 8% in premarket trading after forecasting a surprise first-quarter loss, breaking from rival carriers cashing in on unusually strong winter demand and pricier domestic fares. By contrast, Alaska Air Group Inc. forecast a smaller-than-expected loss in the first quarter."

In REIT News

Scotiabank downgrades AMH to Sector Perform from Sector Outperform (lower price target by $3 to $38)
SLG announced 4Q earnings plus announced that it signed a 92,663 sf, 15-year expansion lease with IBM at One Madison Avenue increasing IBM’s total footprint at the property to 362,092 sf
OLP completed the previously announced acquisition of two Class A industrial properties totaling 371,586 sf located in the Mobile, Alabama MSA on 31 acres for $49 million noting that there are four tenants—Simpson Manufacturing, Veyer LLC, Chadwell Supply, and DC Safety Sales Co., Inc, where the aggregate annual base rent is approximately $3.1 million, with approximate annual rental increases ranging from 2.3% to 3.5%, and a weighted average remaining lease term approaching seven years
RHP announced plans to add approximately 108,000 sf of premium, carpeted meeting space to its flagship Gaylord Opryland Resort & Convention Center in Nashville, TN noting that the planned $131 million expansion, expected to be complete by Spring 2027, includes a new approximately 31,000 sf ballroom, approximately 38,000 sf of breakout space and approximately 39,000 sf of pre-function space and once complete, this project will bring Gaylord Opryland’s total exhibit and meeting space to approximately 756,000 sf
Yesterday morning, GOOD announced an investing, leasing and disposition activity update for 2024 noting that 1) Completed $26.8 million in new acquisitions across seven industrial properties totaling 316,727 sf; 2) During 2024 the Company renewed or extended 2,940,209 sf of leases at 11 of its properties which resulted in a $3.8 million net increase in GAAP rent; 3) Sold seven properties consisting of five office and two medical office properties; 4) Increased occupancy to 98.7% as of December 31, 2024, from 96.8% as of December 31, 2023
Yesterday morning, PGRE announced that it has sold a 45% interest in 900 Third Avenue, a 600,000 sf Class A office building in Midtown Manhattan, at a gross asset valuation of $210 million noting that it will continue to own the remaining 55% interest and manage and lease the property

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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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