The Daily REITBeat | Tuesday, November 26th, 2024

"Starting to Fray?"

Good Morning!

Futures mixed across the markets at the time of this writing as talking heads focus on President-Elect Trump’s tariff proposals along with potential ceasefire between Israel and Hezbollah and a busy economic calendar over the next couple of days.

From Bloomberg

"US equity futures and Treasuries stabilized after a roller-coaster session triggered by President-elect Donald Trump’s first specific threats to limit global trading.
Contracts on the S&P 500 and Nasdaq 100 ticked higher after recovering from earlier declines. Treasuries steadied and the dollar, a beneficiary of isolationist policies, gave up early gains to trade flat.
Trump vowed to place an extra 10% tariffs on Chinese imports and 25% levies on all products from Mexico and Canada. The measures are needed to clamp down on migrants and illegal drugs flowing across the US border, he said on his Truth Social Network.
“We’re just seeing the start of the volatility and the volatility is going to continue as the rhetoric continues,” said Justin Onuekwusi, CIO at St. James’s Place. “It is very difficult to assess if it is a threat, promise or negotiation tool.”
European and Asian stocks fell, reflecting worries that Trump’s policies will hurt US exporters. The Mexican peso and Canadian dollar weakened."

In REIT News

MAC priced an upsized underwritten public offering of 20 million shares of common stock at $19.75/share raising gross proceeds of $395 million and intends to use the net proceeds of this offering together with cash on hand, including from recent sales under the Company’s “at the market” offering program, to repay the $478.0 million mortgage loan with a fixed effective interest rate of approximately 9.0% and which is secured by its Washington Square property
SLG entered into a contract to purchase 500 Park Avenue for $130.0 million noting that the property is located at the corner of 59th Street and Park Avenue and is a historic, landmarked 11-story Class A office building totaling 201,000 sf of luxury office and prime retail space and as part of its capital investment plan, SL Green will reposition the lobby, introduce building amenities and make substantial improvements to the public plaza
GTY announced the closing of its previously disclosed private placement of $125 million of senior unsecured notes, including (i) $50 million of notes priced at a fixed rate of 5.52% and maturing September 12, 2029 and (ii) $75 million of notes priced at a fixed rate of 5.70% and maturing February 22, 2032
Moody’s downgraded HPP’s Corporate Family Rating to “B2” from “Ba3” plus downgraded its limited partnership’s backed senior unsecured debt rating to “B2” from “Ba3” and its backed senior unsecured shelf rating to “(P)B2” from “(P)Ba3” and downgraded its preferred stock rating to “Caa1” from “B2” with a negative outlook
Moody’s downgraded MPW’s Corporate Family Rating to “Caa1” from “B1” and downgraded the backed senior debt rating of its operating subsidiary to “Caa1” from “B1” with a negative outlook
S&P placed all of OPI’s ratings, including its “CCC-“ issuer credit rating, on CreditWatch with developing implications following the announcement that it has launched a private exchange offer under which it will exchange new 2027 secured notes and common stock for some of its existing senior unsecured notes due 2025
SITC provided additional information related to the spin-off and distribution of Curbline Properties Corp. where the fair market value of the CURB shares received by SITE Centers shareholders for federal income tax purposes has been determined by SITE Centers to be $22.29 per CURB share based upon preliminary taxable net income analysis to date and the Company estimates that approximately 21% of the CURB distribution constitutes a taxable capital gain and approximately 79% constitutes a return of capital

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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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