The Daily REITBeat | Monday, December 9th, 2024

"An Upsurge in Risk?"

Good Morning!

Futures slightly mixed at the time of this writing as talking heads focus on a busy economic calendar this week along with potential geopolitical risk from Syria and the Middle East.

From Bloomberg

"US equity futures struggled for direction, ceding brief gains sparked by China’s monetary-policy shift, as investors focused on an upsurge in geopolitical risk and the outlook for interest-rate cuts in the US and other major economies.
Contracts on the Nasdaq 100 eased 0.2% and those on the S&P 500 slipped 0.1%, after rising earlier following China’s announcement that authorities will embrace a “moderately loose” strategy next year. More steps on the fiscal side could be unveiled at Wednesday’s Central Economic Work Conference. While Beijing’s pledge boosted Asian markets and supported US-listed Chinese shares in premarket trading, gains elsewhere were short-lived.
Europe’s Stoxx 600 benchmark also handed back a rise, though sectors exposed to China, including miners and consumer products, advanced.
“The somewhat looser monetary policy stance by the Politburo is welcome news, though it won’t materially change the situation for the Chinese economy,” said Joachim Klement, head of strategy, economics and ESG at Panmure Liberum. “What is needed is substantially more fiscal stimulus that is supported by a looser monetary policy.”"

In REIT News

BMO initiates APLE ($18) and RHP ($133) with Outperform ratings
BofA initiates CTRE with a Buy rating ($33 price target)
BMO upgrades OHI to Outperform from Market Perform (maintain $45 price target)
BMO downgrades CTRE to Market Perform from Outperform (lower price target by $2 to $32)
HR announced that 1) Austen Helfrich, who has served as Interim Chief Financial Officer since October 1, 2024, has been formally appointed as the Company’s permanent Executive Vice President and Chief Financial Officer, effective immediately and 2) As part of a planned transition, Andrew Loope, Senior Vice President, Corporate Counsel and Secretary, will be promoted to Executive Vice President, General Counsel, and Secretary, succeeding John Bryant, effective January 1, 2025 plus 3) its Board of Directors has elected current director Tom Bohjalian as Independent Chair of the Board and 4) the Board has appointed three new independent directors with deep industry and leadership experience, David Henry, Glenn Rufrano and Don Wood, effective immediately, in connection with a cooperation agreement with Starboard Value LP
CTRE announced that it has acquired a 46-facility, 3,820-bed/unit skilled nursing and seniors housing portfolio located in the Midwest for a total investment amount of approximately $97 million (inclusive of transaction costs) noting that seven of the 46 facilities acquired are skilled nursing and assisted living campuses and an additional seven are assisted living facilities and in connection with the acquisition, the company entered into a triple-net master lease with a large skilled nursing investor and operator who will sublease the portfolio to several licensed subtenant operators plus also announced that, as anticipated in connection with the large Tennessee portfolio transaction announced on October 29, 2024, it has closed on its initial acquisition of 14 of the 31 facilities where the initial acquisition was, as previously announced, completed through a joint venture arrangement entered into between CareTrust and a large third-party healthcare real estate owner and at closing, CareTrust provided a combined common equity and preferred equity investment totaling approximately $245 million at an initial contractual yield on its combined preferred and common equity investments in the joint venture of approximately 9.0%
SLG announced that The Travelers Insurance Company has executed a 122,788 sf renewal at 485 Lexington Avenue as the company will remain on a portion of the seventh floor and all of the eighth and ninth floors for an additional 10 years and noted that this transaction increases the Company’s office leases signed year to date to 3,518,829 sf while maintaining a pipeline of more than 900,000 sf
AHT announced that its Crowne Plaza La Concha Hotel in Key West, FL has completed the conversion to a Marriott Autograph Collection® property and is now called the Autograph La Concha
IRM announced that it has elected June Yee Felix to the Board of Directors effective January 1, 2025
On Friday, S&P Global announced TRNO will be added to the S&P SmallCap 600 Index prior to the open of trading on Monday December 23rd, 2024 plus the company announced that it acquired a vacant industrial property located in Long Island City Queens, New York on December 5, 2024 for a purchase price of approximately $7.6 million noting that the property consists of one industrial distribution building containing approximately 17,000 sf on 0.4 acres and the estimated stabilized cap rate is 5.7%
On Friday, S&P Global announced that HPP will be removed from the S&P SmallCap 600 Index prior to the open of trading on Monday December 23rd, 2024
On Friday, Fitch Ratings affirmed OHI’s ratings, including the “BBB-“ Issuer Default 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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