The Daily REITBeat | Wednesday, December 18th, 2024

"A Hawkish Cut?"

Good Morning!

Futures in the green at the time of this writing as talking heads focus on today’s Federal Reserve interest rate policy decision as the last major economic event of 2024. Consensus is 25bps cut but the question is what will be their commentary and outlook for 2025?

From Bloomberg

"Global stocks rebounded on Wednesday as investors awaited the Federal Reserve’s final policy decision of the year.
Futures contracts for the S&P 500 and Nasdaq 100 advanced 0.2% after both gauges retreated on Tuesday. The Stoxx 600 was set for its first day of gains in five sessions. Asian equities kept steady, snapping a three-day losing streak.
Commerzbank AG rose after UniCredit SpA said it has boosted its stake in the German lender. In Japan, shares of Nissan Motor Co. jumped the most since at least 1974 on news that the ailing carmaker is exploring a possible merger with Honda Motor Co. Renault SA, Nissan’s biggest shareholder, rose as much as 7.4% in Paris.
While a quarter-point Fed interest-rate cut is almost fully priced in for Wednesday, investors will focus on the outlook for 2025 as inflation decelerates more slowly than anticipated and the economy remains resilient. The possible impact of key policies under the incoming administration of President-elect Donald Trump adds to the uncertainty.
Last quarter, the Fed’s so-called dot plot projected a full percentage point of rate cuts for 2025, following a similar magnitude of easing this year. Currently, money markets are pricing in that a cut on Wednesday would be followed by less than two 25 basis-point reductions next year.
“Today’s decision will be less consensual than what the market expects,” said Florent Wabont, an economist at Ecofi Investissements. “It think it’s the end of back-to-back cuts. The big question is how will Jerome Powell communicate this to the market.”"

In REIT News

Janney initiates STRW with a Buy rating ($12.50 price target)
BMO downgrades SBAC to Market Perform from Outperform (lower price target by $30 to $230)
Yesterday, Alliance Global Partners initiated IIPR with a Buy rating ($130 price target)
CUZ completed its previously announced acquisition of Sail Tower, an 804,000 square foot trophy lifestyle office property in Austin, TX for a net purchase price of $521.8 million
FCPT announced the acquisition of a City Barbeque property located in a highly trafficked corridor in Georgia for $2.6 million and noted that the property is newly constructed under a long-term, triple net corporate lease with approximately 11 years of term remaining and priced at a cap rate in range with previous company transactions
PK issued its annual Corporate Responsibility Report which details its environmental, social and governance performance and initiatives during 2023 as well as its corporate responsibility strategy and approach to risk management plus six of its hotels and resorts earned ENERGY STAR certifications for superior energy performance during year-to-date 2024 continuing its commitment to enhancing efficiency in the built environment
Yesterday morning, WSR issued a CEO letter to shareholders highlighting its differentiated strategy and ability to execute on its strategy

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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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