The Daily REITBeat | Tuesday, December 3rd, 2024

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Good Morning!

Futures somewhat positive at the time of this writing as talking heads focus on today’s JOLTS Jobs report along with other economic data coming due later this week and anothe Fed meeting in a couple of weeks.

From Bloomberg

"US equity futures pointed to a muted open on Wall Street as traders awaited a busy line-up of Federal Reserve speakers and data releases for clues on the path for interest rates.
Contracts for the S&P 500 were flat after the index notched its 54th closing high of the year on Monday. Treasuries and the dollar slipped, while the euro recovered from some of the previous day’s losses, caused partly by the turmoil around France’s budget.
The headline events for investors include Friday’s payrolls report, which is expected to show hiring bounced back in November, as well as Fed Chair Jerome Powell’s scheduled participation in a moderated discussion on Wednesday. Swaps are pricing a more than 70% chance of a quarter-point rate reduction by the US central bank at its Dec. 17-18 meeting.
“The market still expects the Fed will cut rates,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said on Bloomberg Television. “We will see when the employment data comes through on Friday how brave you have to be. But I think the bias is still there and the market thinks there is still room to do that, given the overall picture.”"

In REIT News

BMO downgrades CUZ to Market Perform from Outperform (raise price target by $1 to $32)
BMO downgrades JBGS to Underperform from Market Perform (lower price target by $3 to $15)
AMH priced $500 million of 5.25% senior notes due 2035 on behalf of its operating partnership and intends to use the net proceeds for the repayment of outstanding indebtedness, which may include repayment of amounts outstanding on its revolving credit facility, repayment or voluntary prepayment of all or a portion of the 2015-SFR1 Notes, as well as general corporate purposes, including, without limitation, property acquisitions and developments, the expansion, redevelopment and/or improvement of existing properties in its portfolio, other capital expenditures, working capital and other general purposes
EXR priced $300 million of 5.70% notes due 2028 on behalf of its operating partnership in an add-on offering and intends to use the net proceeds to repay amounts outstanding from time to time under its lines of credit (which may include borrowings from the underwriters or their affiliates), and for other general corporate and working capital purposes, including funding potential acquisition opportunities
SLG announced along with its JV partners that it closed on a modification and extension of the $1.25 billion mortgage facility on One Madison Avenue which extended the final maturity date through November 2027 and maintained the interest rate at 3.10% over Term SOFR with a further reduction in spread when specific leasing thresholds are exceeded
DEA announced that it has acquired a 97% leased, combined 295,253 sf campus across three assets leased primarily to the Wake County Public School System (WCPSS) located in Cary, NC
FCPT announced the acquisition of a NAPA Auto Parts property located in a highly trafficked corridor in New York for $2.0 million noting that the property is under a corporate, triple net lease with approximately 5 years of term remaining and priced at a 7.2% cap rate on rent as of the closing date and exclusive of transaction costs
NHI announced that Candice Todd will join its Board of Directors effective January 1, 2025
AHT announced that it plans to close its offering of Series J and Series K non-traded preferred stock on March 31, 2025 noting that Since launching the offering in 2022, the Company raised approximately $180.0 million of gross proceeds from the sale of its Series J and Series K non-traded preferred stock
Yesterday, SPG announced that it “saw a remarkably strong start to the holiday shopping season on Black Friday that continued throughout the weekend, including a 6.4% increase in year-over-year traffic at its centers across the country amid preliminary reports of surging sales from retailers… Year-over-year traffic was up 5.9% on Black Friday and grew throughout the weekend, including a 6.3% increase on Saturday and 8.2% on Sunday… The growth was experienced across all of Simon’s platforms with Malls up an impressive +7.1%”

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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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