The Daily REITBeat | Tuesday, November 12th, 2024

"Stalling Out?"

Futures relatively flat to slightly down across the board at the time of this writing as talking heads focus on markets continuing their upward climb as bitcoin approaches $90K and 10-year treasury hovers around 4.36%.

From Bloomberg

"A five-day rally in the S&P 500 looked set to stall amid unease over expensive equity valuations and the composition of President-elect Donald Trump’s incoming cabinet.
Contracts on the S&P 500 and Nasdaq 100 indexes slipped about 0.2%, while Europe’s Stoxx 600 gauge lost 1%. Tesla Inc., the EV maker seen as a prime beneficiary of a Trump presidency, dropped in premarket trading after a post-election surge that lifted its valuation past $1 trillion. Other so-called Trump trades remained in play, however, with Treasuries falling, the dollar hitting a one-year high and Bitcoin hovering just below $90,000.
The election outcome has taken investors’ US equity exposure to the highest in three years, suggesting the rally could run out of steam, according to Citigroup Inc. analysts. Traders are also pondering the potential for Trump’s economic policies, including trade tariffs and immigration crackdowns, to spur inflation and affect the path for Federal Reserve monetary policy.
“If we have those tariffs kicking in, if we have those so-called deportations, those would have an outright inflationary impact, and so would result in higher bond yields,” said Kevin Thozet, a member of the investment committee at Carmignac. “Higher bond yields across the curve may start to bite at some point,” especially at a time of lofty stock-market valuations, he said.
Ten-year Treasury yields rose as much as six basis points as the market reopened after Monday’s holiday."

In REIT News

BofA downgrades SUI to Underperform from Neutral (lower price target by $33 to $114)
Jefferies downgrades HPP to Hold from Buy (lower price target by $.50 to $5)
Yesterday, Morningstar downgraded ELS to Hold from Buy (maintain $76 price target)
Yesterday, Morningstar downgraded EQIX to Sell from Hold (maintain $810 price target)
SHO and SILA announced quarterly earnings
HR announced that Todd Meredith will step down as President and Chief Executive Officer and as a member of the Board of Directors effective immediately while the board has appointed Constance “Connie” Moore, current Healthcare Realty board member and former President and CEO of BRE Properties, Inc., as interim President and CEO effective immediately
XHR announced that its operating partnership intends to offer, subject to market conditions and other factors, $365 million aggregate principal amount of senior notes due 2030 and intends to use the net proceeds of the offering, together with borrowings under the Company’s amended and restated credit agreement, to redeem in full its outstanding 6.375% senior notes due 2025 and to pay certain fees and expenses in connection with, or otherwise related to, the offering of the Notes and the use of proceeds therefrom and from the Credit Agreement
AHT announced that it has successfully entered into a 90-day forbearance period for its Morgan Stanley Pool loan secured by 17 hotels as the loan had a final maturity date of November 9, 2024 and the Company is in active discussions with the lender regarding a multi-year extension of the loan and expects to have that finalized during the 90-day period
Yesterday morning, Fitch Ratings placed the ratings of ROIC and its limited partnership, including the “BBB” Long-Term Issuer Default Ratings and underlying senior unsecured debt, on Rating Watch Evolving

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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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