The Daily REITBeat | Thursday, November 7th, 2024

"Seismic Moves"

Good Morning!

Dow futures up over 100 points at the time of this writing as talking heads focus on yesterday’s “facemelting” rally with movements across multiple sectors and industries. Will today’s Federal Reserve meeting provide more fireworks?

From Bloomberg

"US equity futures maintained their post-Election Day gains and the dollar eased as traders continued to map out Donald Trump’s return to the White House and what it holds for the Federal Reserve’s interest-rate path.
S&P 500 contracts edged higher after the US benchmark surged in the previous session on bets that the newly elected President will boost corporates through pro-growth policies. An index of the dollar retreated 0.3% following its best day since 2022. Moves in US Treasury yields were muted after Wednesday’s seismic selloff.
Markets are taking a breather Thursday after grappling with the far-reaching effects of a Trump presidency. His win has forced investors to come to terms with economic policies that could lead to fewer Fed rate cuts, along with a possible Republican sweep of Congress that could help fuel fiscal expansion.
“What we saw yesterday was the playbook of the Trump trade in action but it’s soon going to evolve,” said Arnaud Girod, head of economics and cross-asset strategy at Kepler Cheuvreux in Paris. “US yields can’t continue to go up with US equities on the rise, my conviction is that yields will calm down.”"

In REIT News

Scotiabank downgrades BXP to Sector Perform from Sector Outperform (lower price target by $6 to $85)
Baird downgrades SUI to Neutral from Outperform (lower price target by $19 to $126)
Baird downgrades ROIC to Neutral from Outperform (raise price target by $1.50 to $17.50)
BHR, CLDT, COLD, GMRE, GNL, HST, IIPR, LAND, MPW, PLYM, RLJ, RYN, SKT, SUI, SVC, TRNO, UMH, XHR announced earnings
AIV, BRT, DRH, ONL, PEB announce earnings after the close of trading while LAMR announces tomorrow morning before the open
DLR announced that its limited partnership priced $1,000,000,000 aggregate principal amount of 1.875% exchangeable senior notes due 2029 where the initial exchange rate is 4.7998 shares of Digital Realty’s common stock per $1,000 principal amount of notes, which represents an initial exchange price of approximately $208.34/share of Digital Realty’s common stock which represents a premium of approximately 20% over the last reported sale price of $173.62/share of Digital Realty’s common stock on November 6, 2024 and intends to use the net proceeds from the offering to temporarily repay borrowings outstanding under its global revolving credit facilities, acquire additional properties or businesses, fund development opportunities, and to provide for working capital and other general corporate purposes, including potentially for the repayment of other debt or the repurchase, redemption, or retirement of outstanding debt securities, or a combination of the foregoing
SUI announced a comprehensive restructuring effort to more effectively align the Company’s cost structure and deliver sustainable earnings growth and has identified and intends to realize annualized G&A and operating expense savings of between $15 million and $20 million on a run-rate basis from the restructuring plus John McLaren is returning to the Company full-time as President to oversee the restructuring and the execution of these initiatives while Gary Shiffman has informed the Board of his intention to retire in 2025
PLYM refinanced and upsized unsecured aggregate borrowing capacity to $1.5 billion with the refinance of the unsecured revolving credit facility to $500 million (from $350 million) and the recast of the $100 million 2026 term loan as both now mature in November 2028
AHT refinanced its mortgage loan secured by the 703-room Marriott Crystal Gateway Hotel located in Arlington, Virginia, which had a final maturity date in November 2026 as the new, non-recourse loan totals $121.5 million and has a three-year initial term with two one-year extension options, subject to the satisfaction of certain conditions
Yesterday, ROIC announced with Blackstone that they have entered into a definitive agreement under which Blackstone Real Estate Partners X will acquire all outstanding common shares of ROIC for $17.50/share in an all-cash transaction valued at approximately $4 billion including outstanding debt and noted that the purchase price represents a premium of 34% to ROIC’s closing share price on July 29, 2024, the last trading day prior to news reports of a potential sale

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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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