The Daily REITBeat | Thursday, December 12th, 2024

"Pivotal Communication"

Good Morning!

Futures in the red at the time of this writing as talking heads set the stage for today’s PPI report and weekly jobless claims report. In addition, the European Central Bank is meeting as well with their rate cut on the table.

From Bloomberg

"US stock futures pointed to a slightly weaker Wall Street session as Treasury yields rose ahead of the Federal Reserve’s policy meeting next week.
Contracts on the S&P 500 were down 0.2% while those on the Nasdaq 100 slipped 0.4%. Both indexes made strong gains on Wednesday, when an in-line US inflation print cemented swap markets’ expectations of a a quarter-point rate cut at the Fed’s Dec. 17-18 meeting.
However, signs of still-elevated inflation pressures and the prospect of a Fed rate pause in early-2025 are keeping investors on edge. That’s pushed Treasury 10-year yields to two-week highs, up three basis points on the day.
“We could get a bit of a hawkish cut this month from the Fed where they say ‘we’ll cut now but we’ll watch data’,” said Ella Hoxha, head of fixed income at Newton Investment Management. “In that setup, the risk is still that you price the Fed to be a bit more cautious rather than more dovish.”
Later on Thursday, the European Central Bank is expected to lower policy rates by a quarter-point, following on from the Swiss National Bank’s surprising 50 basis-point reduction. With an ECB cut — its fourth this year — already baked in, traders will wait for clues from rate-setters on the extent of loosening needed in this cycle."

In REIT News

Evercore ISI initiates ADC with an Outperform rating ($82 price target)
MAA priced $350 million of 4.95% senior unsecured notes due 2035 on behalf of its operating partnership and intends to use the net proceeds to repay all or a portion of the borrowings outstanding under its $625 million unsecured commercial paper program, and any remaining net proceeds will be used for general corporate purposes, which may include, without limitation, the repayment of other debt and the acquisition, development and redevelopment of apartment communities
SUI announced several upcoming changes to its Board of Directors as part of its ongoing refreshment strategy noting that Arthur A. Weiss informed the Board that he will retire from the Board on December 31, 2024, Stephanie W. Bergeron informed the Board that she will not stand for re-election to the Board at the Company’s 2025 Annual Meeting of Shareholders, and Clunet R. Lewis informed the Board that he intends to retire from the Board no later than the Company’s 2026 Annual Meeting of Shareholders
GNL announced continued progress on its strategic disposition plan where through December 9, 2024, the Company has closed $620 million of dispositions, and, together with its pipeline of potential asset sales, dispositions currently total $1.1 billion
OPI announced it has consummated the previously announced private exchange of a portion of its 4.50% senior unsecured notes due 2025 for: (i) approximately $445 million of new 3.25% senior secured notes due 2027, (ii) cash for accrued interest on the exchanged 2025 Notes up to but not including the closing date, (iii) approximately 11.5 million shares of OPI common stock, and (iv) premiums totaling $25.0 million and following the exchange, which will directly or indirectly account for $340 million of 2025 Notes, the Company intends to repurchase, redeem or repay the remaining $113.1 million of outstanding 2025 Notes prior to the February 1, 2025 maturity date
Yesterday morning, TRNO announced that it sold an industrial property located in Newark, NJ on December 10, 2024 for a sale price of approximately $29.8 million noting that the property consists of a 5.7-acre improved land parcel which is 100% leased to one tenant where the unleveraged internal rate of return generated by the investment was 14.9%
Yesterday morning, PLD announced that it has sold a data center development in its Chicago market to HMC Capital and in partnership with Skybox Datacenters, it is converting one of its warehouses into a high-capacity, turnkey data center with a marketed capacity of 32 megawatts (MW)
Yesterday morning, HPP closed on the sale of a non-core Palo Alto office property, 3176 Porter, for $24.8 million before prorations and closing costs and used net proceeds to repay amounts outstanding on its unsecured revolving credit facility plus as previously announced, the company also has under contract the sale of a second non-core Palo Alto office property, Foothill Research Center, that is targeted to close in first quarter 2025

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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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