The Daily REITBeat | Monday, November 25th, 2024

"A Wall Street Mindset"

Good Morning!

Dow futures up around 300 points at the time of this writing as talking heads focus on President Trump’s selection of Scott Bessent for US Treasury Secretary and the potential impact on the economy and markets.

From Bloomberg

"Stocks and Treasuries rose as traders welcomed Donald Trump’s pick of Scott Bessent for US Treasury Secretary, betting the hedge fund manager will bring a Wall Street mindset to the role and soften the returning president’s support for sweeping tax cuts and trade tariffs.
US equity futures gained at least 0.5% while the yield on 10-year Treasuries dropped five basis points to 4.35%. The dollar declined while Bitcoin rebounded from a weekend drop.
The market moves mark a reversal of some elements that define the so-called Trump Trade, including a surging dollar and rallying Bitcoin. The cooling enthusiasm about these assets comes as traders trim expectations for the president-elect to lower taxes and boosts tariffs, policies that may keep interest rates elevated and support the greenback.
Bessent’s nomination has eased concerns over the incoming president’s inflationary agenda, which had sparked a selloff in government bonds that drove the benchmark Treasury yield to a four-month high. The Key Square Group hedge fund manager has indicated he’ll back Trump’s tariff and tax cut plans but investors expect him to prioritize economic and market stability.
“Markets can now map a road ahead for policies,” said Colin Graham, head of multi-asset strategies at Robeco, who’s positions are overweight on both US stocks and Treasuries. Bessent is “seen as more moderate on tariffs so could be perceived as bond positive.”"

In REIT News

EQIX announced that it has issued an additional €1.15 billion in green bonds comprised of €650 million principal amount of 3.25% senior green notes due 2031 and €500 million principal amount of 3.625% senior green notes due 2034 and intends to allocate an amount equal to the net proceeds from the green bonds to finance or refinance, in whole or in part, recently completed or future Eligible Green Projects
OPI entered into an exchange agreement providing for a private exchange with certain members of an ad hoc group of noteholders holding a significant amount of its $453.6 million outstanding senior unsecured notes due 2025 to refinance up to $340 million of the 2025 Notes where the Company intends to repurchase, redeem or repay the remaining $113.6 million of outstanding senior unsecured notes due 2025 with cash in connection with the consummation of the Exchange which is expected to close before year end 2024
On Friday, SPG sold Osage Beach Outlet Marketplace located in Osage Beach, MO noting that the 391,000 sf outlet center features key tenants such as Polo Ralph Lauren, Under Armor, Bath & Body Works, and LOFT
On Friday, TRNO sold an industrial property located in Doral, Florida, on November 21, 2024, for a sale price of approximately $20.6 million noting that the property consists of one industrial distribution building containing 75,000 sf on 2.8 acres which is 100% leased to one tenant and was purchased by the Company on July 23, 2012 for approximately $4.2 million where the unleveraged internal rate of return generated by the investment was 13.4%
On Friday, DEA announced that it has acquired a 100,000 leased sf facility 100% leased to the General Services Administration for the beneficial use of the Internal Revenue Service, located in Ogden, UT where the highly secure facility sits on 13 acres and houses mission-critical operations related to the IRS’ tax submission processing and Digital Fraud Department

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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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