The Daily REITBeat | Tuesday, February 4th, 2025

"Tariff Turmoil"

Good Morning!

Futures mixed at the time of this writing as talking heads focus on economic impact of tariffs imposed and on the table by President Trump. Corporate earnings also in focus as the 10-year treasury hovers around 4.59%.

From Bloomberg

"Stocks struggled for traction as traders worried about the economic implications of tariffs while parsing the latest batch of earnings. The dollar weakened and bond yields rose.
S&P 500 futures and European equities were little changed after China’s restrained response to US tariffs and a last-minute reprieve for Canada and Mexico. The dollar index slid 0.2% as some traders flagged relief that the worst-case scenarios seem to be avoided.
A mixed bag of corporate results, meanwhile, did little to give the market direction. Palantir Technologies Inc. shares soared as much as 20% in US premarket trading after the software company gave a forecast that is stronger than expected, citing demand for its AI products. But Merck & Co. Inc., PepsiCo Inc. and Estée Lauder Cos. declined on disappointing outlooks.
“The tariff issue is not going away as fast as one could have hoped for,” said Andrea Tueni, head of sales trading at Saxo Banque France SAS. “Sure, earnings are providing some oxygen but there’s a bigger game at play here. We’re only at the beginning of a long process so my advice is to proceed cautiously.”
Traders are also awaiting results Tuesday from Google parent Alphabet Inc., as well as data on US factory- and durable-goods orders."

In REIT News

BMO initiates TRNO with a Market Perform rating ($71 price target)
Evercore ISI upgrades MAR to Outperform from Inline (raise price target by $55 to $330)
DOC and EQR announced earnings while AAT, BDN, DEI, ESS and SPG announce earnings after the close of trading
HIW announced investment and financing transactions that closed during the fourth quarter of 2024 and to date in early 2025 whereby 1) the Company has sold in a series of transactions non-core buildings in Raleigh and Tampa for combined gross proceeds of $166.4 million and gross proceeds from dispositions closed in the fourth quarter of 2024 totaled $21.4 million with the remainder closing early in the first quarter of 2025; 2) in the fourth quarter of 2024, the Company acquired fee simple title to the land underneath its Century Center assets for $50.6 million; 3) in the fourth quarter of 2024, the Company sold 1.59 million shares of its common stock at an average gross sales price of $32.71 per share, raising net proceeds of $51.3 million
STAG completed the sale of a building in Nashua, NH on January 31st for gross proceeds of $67.0 million, representing a Cash Capitalization Rate of 4.9% as the 337,391 sf building was acquired in 2014 at an 8.2% Cash Capitalization Rate for a purchase price of approximately $11.7 million and the sale resulted in a 20.8% unlevered internal rate of return over the hold period
VICI announced the effectiveness of its new $2.5 billion multicurrency unsecured revolving credit facility that replaced its existing, and now terminated, unsecured revolving credit facility of the same size noting that the Revolving Credit Facility matures on February 3, 2029 and can be extended for two successive six-month terms or one twelve-month term plus the Company has an option to increase the Revolving Credit Facility by up to $1.0 billion, to the extent that any one or more lenders (from the syndicate or otherwise) agree to provide such additional credit extensions
OUT announced the appointment of Nick Brien as Interim Chief Executive Officer effective February 10, 2025 which follows the previously announced retirement of Jeremy Male

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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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