The Daily REITBeat | Wednesday, April 30th, 2025 | Wednesday, April 30th, 2025

"Cautious Optimism or Misleading?"

Good Morning!

Futures mixed at the time of this writing as talking heads focus on several key economic data points being released today amidst a busy corporate earnings season as tariffs overhang the market.

From Bloomberg

"S&P 500 futures slipped before key US economic data, while companies reporting earnings were short on reassurances about the future.
Contracts on the S&P and Nasdaq 100 declined following a six-day rally, as more companies withdraw their guidance. Super Micro Computer Inc. slid 16% in pre-market trading, ahead of earnings from mega cap tech companies such as Microsoft Corp. and Meta Platforms Inc. Snap Inc. narrowly beat analysts’ estimates for first-quarter revenue but declined to issue a sales forecast.
Economic barometers of US economic health are also due with inflation and gross-domestic-product data Wednesday that will give a snapshot of activity just before President Donald Trump unleashed country-specific levies on April 2. US real GDP growth likely cooled to a standstill in the first quarter amid disruptions from policy shifts, according to Bloomberg Economics.
Investors have been cautiously optimistic — the Nasdaq 100 is close to erasing all of its losses this month — after tariff U-turns and speculation the Federal Reserve will cut interest rates to prevent a recession.
“Perhaps we are past peak uncertainty,” Kim Crawford, global rates portfolio manager at JPMorgan Asset Management, told Bloomberg TV. “The administration has a more conciliatory tone on tariffs and to an extent as well, Fed independence.”
Benchmark 10-year Treasuries steadied after six days of gains, with the yield at 4.16%. Gold dropped."

In REIT News

BofA upgrades DRH ($9.50) and SHO ($10) to Buy from Underperform
BofA upgrades INN to Neutral from Underperform ($5 price target)
BofA downgrades PK to Underperform from Neutral (lower price target by $.50 to $11)
AAT, AKR, BXP, CHCT, EQR, ESRT, ESS, EXR, FSP, HIW, ILPT, JBGS, KRG, LINE, REG, STAG, UE, WPC announced quarterly earnings
AVB, BNL, CCI, EQIX, FCPT, HST, INN, INVH, IRT, IVT, MAA, OPI, PGRE, PSA, PSTL, RYN, SKT, UDR, VICI, VTR, WSR announce earnings after the close of trading while IRM, KIM, LXP, MPW, NNN announce tomorrow morning before the open
LINE announced plans to expand its U.S. cold-storage network via a series of new acquisitions, greenfield developments, and enhanced automation implementation whereby it has entered into a definitive agreement to acquire four existing cold storage warehouses which total approximately 49 million cubic feet with 160 thousand pallet positions in the U.S. from Tyson Foods, Inc. for $247 million
FVR announced that during the first quarter of 2025, they acquired 17 new properties for $49.2 million at a weighted average initial cash capitalization rate of 7.9% and a weighted average lease term of 12 years and sold one non-core property for gross sales proceeds of $2.1 million at a 6.9% cash capitalization rate plus announced the appointment of Randall Starr as CFO as Tim Dieffenbacher will be transitioning to the private sector and will be leaving effective May 05, 2025 as well as appointing Sean Fukumura to become their Chief Accounting Officer
ELS announced that the Board of Directors has named Marguerite Nader as Vice Chairman of the Board and promoted Patrick Waite as President both effective immediately and noted that Ms. Nader will continue serving as Chief Executive Officer and Mr. Waite will continue in his role as Chief Operating Officer reporting to Ms. Nader
Moody’s affirmed the “A3” senior unsecured rating, “(P)A3” backed senior unsecured shelf rating, and “P-2” short-term commercial paper rating of ERP Operating Limited Partnership plus affirmed EQR’s “Baa1” preferred stock rating and “(P)Baa1” preferred shelf rating with a stable outlook

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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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