The Daily REITBeat | Tuesday, January 21st, 2025

"It's A Golden Age"

Good Morning!

Futures in the green at the time of this writing as talking heads focus on yesterday’s Presidential Inauguration and implications of the potential economic implications of tariffs and other regulations.

From Bloomberg

"A more serene mood settled over markets after a rollercoaster session on Donald Trump’s first day in office, with investors looking past the threat of tariffs to the potential boost from fiscal stimulus and tax cuts.
US stock futures, Treasuries and the dollar all gained as traders chose to focus on the prospects for economic growth and corporate profits under Trump’s second four-year term. Still, the lack of an overall narrative on trade restrictions so far underscores the risk of higher volatility across financial markets.
“Risky assets should benefit from deregulation and tariffs emerging as not so bad as feared,” said Mohit Kumar, chief economist at Jefferies International Ltd. “For rates, less onerous tariffs and likely lower oil prices should be a positive. We do admit that there would be an additional element of volatility.”
While stopping short of imposing new tariffs on his first day in office, Trump ordered his administration to address unfair practices globally and outlined levies he expects to place on Canada and Mexico by Feb. 1. He demurred on whether he still planned to add tariffs to China and said he wasn’t considering an immediate universal tariff.
Contracts on the S&P 500 and Nasdaq 100 rose 0.4%. Bloomberg’s dollar gauge climbed 0.6%. Treasury 10-year yields dropped five basis points to 4.58%. The Mexican and Canadian currencies were among the worst-performing of 30 major currencies on Tuesday, with the peso and loonie both dropping about 1%. "

In REIT News

Deutsche Bank upgrades ELS ($73) and ESS ($310) to Buy from Hold
Deutsche Bank downgrades AMH ($37) and INVH ($33) to Hold from Buy
On Friday, Truist Securities upgraded CUBE ($47), ELME ($16), ELS ($72) and SUI ($136) to Buy from Hold
On Friday, Truist Securities downgraded PLYM ($20) and SBRA ($17) to Hold from Buy
PLD announced 4Q FFO and sees 2025 FFO guidance of $5.65-$5.81/share
KIM announced changes to its Board of Directors whereby 1) Mr. Milton Cooper will retire as Executive Chairman of the Company at the 2025 Annual Meeting of Stockholders and Richard Saltzman will become the Independent Chairman of the Board of Directors, Mary Hogan Preusse will conclude her service as Lead Independent Director while remaining a member of the Board, and Milton Cooper will assume the title of Chairman Emeritus; 2) Effective January 21, 2025, the Board has appointed Nancy Lashine and Ross Cooper to the Company’s Board of Directors, with Ms. Lashine to serve on the Audit and Executive Compensation Committees of the Board
On Friday, Moody’s affirmed OPI’s Corporate Family Rating at “Caa3” and assigned a “Caa2” rating to its new senior secured notes due 2027 while downgrading the rating on its existing senior secured notes due March 2029 to “Caa2” from “Caa1” and the rating on its senior secured exchanges notes due September 2029 to “Caa3” from “Caa2” with a negative outlook
On Friday, TRNO announced that it sold an industrial property located in South San Francisco, CA for a sale price of approximately $8.0 million noting that the property consists of one industrial building containing approximately 22,000 sf on 0.7 acres which is 100% leased to one tenant and the unleveraged internal rate of return generated by the investment was 7.5%
On Friday, CUBE announced that Joel Keaton, Chief Operating Officer, will retire effective April 30, 2025 and in connection with the planned retirement, the Company is promoting proven leaders to assume his responsibilities while following his retirement, Mr. Keaton will serve as a consultant to ensure a smooth transition

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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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