The Daily REITBeat | Wednesday, January 8th, 2025

"Weighted Concerns"

Good Morning!

Futures in the red at the time of this writing as talking heads focus on today’s economic data, President-elect Trump’s upcoming tariff policies and the movement in treasury yields. In addition, the market will be closed tomorrow for President Carter’s state funeral.

From Bloomberg

"Bonds and equities extended a selloff on Wednesday as traders assessed the heightened risk of future US tariffs and what that holds for inflation.
US Treasuries reversed earlier gains following a CNN report that Trump is considering declaring a national economic emergency to push through his tariff plans. In the UK, 10-year bond yields rose to their highest since 2008 while the 30-year inflation-linked note is now yielding more than 2%, the most since the Truss crisis of 2022.
Future contracts for the S&P 500 and Nasdaq 100 respectively dropped 0.4% and 0.6%, pointing to further losses after Tuesday’s pummeling that was led by big-tech stocks. Europe’s Stoxx 600 fell 0.5% after an earlier advance by the same margin. The dollar rose 0.5%.
The ongoing turmoil in markets shows how much traders are grappling with persistent US price pressures and uncertainty about the impact of President-elect Donald Trump’s key policies. US equities had a topsy-turvy start to the year while bonds continued their slide as a resilient economy forced traders to push back expectations of interest rate cuts.
“Higher Treasury yields are a cause for concern for equity investors, especially when combined with speculation on what Trump may do,” said Lilian Chovin, head of asset allocation at Coutts & Co. in London. “Our view is that markets can digest higher yields, provided they are driven by stronger growth rather than inflation. In the near term it will be a challenge for risk assets.”"

In REIT News

CBRE Research initiates RHP with a Buy rating ($130 price target)
Lake Street Capital Markets initiates STRW with a Buy rating ($13.50 price target)
CPT announced that it disagrees with the allegations made in the amended complaint against RealPage, which added Camden and others as defendants and the Company will vigorously defend itself against these claims and intends to move for dismissal
DLR announced that Digital Dutch Finco B.V., an indirect wholly owned finance subsidiary of its operating partnership, Digital Realty Trust, L.P., priced an offering of €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2035 and intends to use the net proceeds to temporarily repay borrowings outstanding under the operating partnership’s global revolving credit facilities, acquire additional properties or businesses, fund development opportunities, invest in interest-bearing accounts and short-term, interest-bearing securities which are consistent with the company’s intention to qualify as a REIT for U.S. federal income tax purposes, and to provide for working capital and other general corporate purposes
WPC announced investment volume for the 2024 full year of approximately $1.6 billion at a weighted-average initial cap rate of approximately 7.5% and an average yield of approximately 9% (which reflects contractual rent escalations over the terms of the leases)
TRNO announced its operating, investment and capital markets activity for the fourth quarter of 2024
GTY announced an update on the Company’s fourth quarter and full year 2024 investment and capital markets activities commenting that It invested approximately $209 million in convenience and automotive retail assets in 2024 at an 8.3% initial cash yield, including approximately $76 million at an 8.9% initial cash yield in the fourth quarter plus raised approximately $289 million of new equity and debt capital, including approximately $32 million of forward equity through the Company’s at-the-market equity program and $125 million of previously announced unsecured notes in the fourth quarter and sees 2025 Adjusted FFO guidance of $2.40-$2.42/share
PECO announced transaction activity for the three months ended December 31, 2024 commenting that fourth quarter 2024 acquisitions included: Shops at Cross Creek, a 24,188 sf shopping center located in a Houston, Texas suburb; Harpers Station, a 229,060 sf shopping center anchored by Fresh Thyme located in a Cincinnati, Ohio suburb; Lakeland Village Center, an 83,542 sf shopping center located in a Houston, Texas suburb; and Northpark Plaza, a 52,192 sf shopping center anchored by King Soopers located in a Denver, Colorado suburb and during the twelve months ended December 31, 2024, the Company acquired 14 shopping centers and four land parcels for approximately $306 million
In an 8-K filing, CCI announced that Daniel K. Schlanger will, effective March 31, 2025, cease serving as Executive Vice President and Chief Financial Officer of the Company
NSA announced the promotion of John Esbenshade to Chief Accounting Officer from his previous role of Senior Vice President, Controller, effective January 1, 2025
Yesterday morning, BRX announced investment activity for the three and twelve months ended December 31, 2024

Download The REIT Beat here!

The Daily REITBeat 1-8-25.pdf

Welcome your comments and feedback.

Have a great day!

David Auerbach & Mary Jensen

Subscribe here to receive The Daily REITBeat newsletter every morning.

« More of The Daily REITBeat

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.

Confidentiality Notice: The content in this article is provided for informational purposes only and is not intended to be, nor should it be construed or used as an offer to sell, or a solicitation of any offer to buy, any security. Additionally, the information herein should not be relied upon as recommendations or financial planning advice. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. This email, including attachments, may include non-public, proprietary, confidential or legally privileged information. If you are not an intended recipient or an authorized agent of an intended recipient, you are hereby notified that any dissemination, distribution or copying of the information contained in or transmitted with this email is unauthorized and strictly prohibited. If you have received this email in error, please notify the sender by replying to this message and permanently delete this e-mail, its attachments, and any copies of it immediately. This message is intended only for the addressee. If you are not the intended recipient, please notify the sender by e-mail reply and delete this message. You may not copy, disclose, distribute or otherwise make use of this message or its contents for yourself or for any other person, as that action may be unlawful. You should not retain, copy or use this e-mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person. All data is reported from Bloomberg, SNL, or Hoya Capital unless otherwise indicated. While such information is believed to be reliable, no representation or warranty is made concerning the accuracy of any information presented. Statements herein that reflect projections or expectations of future financial or economic performance are forward-looking statements. Such “forward-looking” statements are based on various assumptions, which assumptions may not prove to be correct. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or actual performance. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be accurate. Actual results for any period may or may not approximate such forward-looking statements. No representations or warranties whatsoever are made by Hoya Capital as to the future profitability of investments recommended by these organizations.