The Daily REITBeat | Tuesday, January 14th, 2025

"A Gradual Ramp-Up?"

Good Morning!

Futures in the green at the time of this writing as talking heads focus on today’s PPI report, trade tariffs under President-elect Trump, the wildfires in LA and corporate earnings.

From Bloomberg

"World stocks rose and the dollar slipped after a report that President-elect Donald Trump’s incoming economic team is considering a gradual ramp-up in trade tariffs in a strategy that could avert inflation spikes.
US equity futures ceded some of their earlier sharp gains, but contracts on the Nasdaq 100 remained 0.4% higher, putting the underlying index on track to snap a two-day run of losses. Bloomberg News reported that graduated tariff hikes of about 2% to 5% a month are under discussion, rather than aggressive one-time increases.
S&P 500 contracts gained 0.3%, while most of the so-called Magnificent Seven tech shares advanced in premarket trading.
“A slower and steadier tariff approach would perhaps remove a degree of upside inflation risk and a degree of downside growth risk, so everyone is getting cautiously optimistic again,” said Michael Brown, a strategist at Pepperstone Group Ltd.
The report knocked the dollar index lower after five straight days of gains, while global bond markets steadied after a sharp run-up in borrowing costs in recent days. However, an earlier drop in 10-year Treasury yields subsided, keeping borrowing costs near the October 2023 highs hit Monday after traders slashed bets on Federal Reserve interest-rate cuts."

In REIT News

Deutsche Bank initiates EGP with a Buy rating ($180 price target)
Deutsche Bank initiates FR ($52), REXR ($40) and TRNO ($60) with Hold ratings
BNP Exane Paribas initiates LINE with a Neutral rating ($61 price target)
Morgan Stanley downgrades SHO to Underweight from Equalweight (maintain $10 price target)
Yesterday, Morningstar upgraded MAC ($24) and REG ($80) to Buy from Hold
Land & Buildings Investment Management, LLC issued a statement commending AIV’s management and board of directors following the announcement of the Brickell Assemblage transaction and the expansion of the Company’s strategic review process plus is calling for a quick resolution to the Company’s strategic review through a sale of the whole company, which L&B believes can unlock an additional 30% upside above the current share price
AHT completed the sale of the 315-room Courtyard Boston Downtown located in Boston, MA for $123 million ($390,500/key)
DEA amended its $100 million senior unsecured term loan agreement executed in 2016 whereby it extended the maturity date of the Amended 2016 Term Loan from January 30, 2025 to January 28, 2028 and may exercise at its discretion two one-year extension options, subject to certain conditions, thus extending the maturity date as late as January 28, 2030 plus secured increased borrowing capacity on the accordion feature from $150 million to $250 million
HHH confirmed the Board’s receipt of a proposal from Pershing Square Capital Management LP under which Pershing Square has proposed to acquire additional shares of the Company’s common stock in a merger transaction between the Company and a newly formed merger subsidiary of Pershing Square Holdco, L.P., pursuant to which Pershing Square would own a majority of the Company’s common stock as a result of such merger as Pershing Square currently beneficially owns approximately 37.6% of the Company’s common stock and “The Special Committee will evaluate the proposal and determine the appropriate course of action and process”
NHI announced the passing of Joe Wakham Jr., Controller and Vice President

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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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