The Daily REITBeat | Wednesday, December 11th, 2024

"CPI..Oh My?"

Good Morning!

Futures in the green while the 10-year hovers around 4.25% at the time of this writing as talking heads set the stage for today’s CPI report as one of the last major data points ahead of next week’s year-ending Federal Reserve meeting.

From Bloomberg

"The dollar strengthened after a report that Chinese leaders are considering allowing their currency to weaken as they brace for higher tariffs under a second Donald Trump presidency.
The report from Reuters, saying Beijing could let the yuan depreciate, jolted markets that were in a lull ahead of Wednesday’s US inflation data print and next week’s Federal Reserve meeting. It sent the the offshore yuan as much as 0.5% lower, while Bloomberg’s dollar index gained 0.3% to touch a two-week high.
The move spilled over globally, triggering drops in China proxies such as the Australian and New Zealand dollars, as well as in key emerging-market currencies like the South African rand. On equity markets, futures on the S&P 500 and the Nasdaq 100 indexes inched higher, while Europe’s Stoxx 600 benchmark erased an early decline.
“Last time we had the trade war, we saw a big weakening in the yuan,” said Karsten Junius, chief economist at Bank J Safra Sarasin Ltd. “That made sense at the time, it would make sense again if Trump comes up with tariffs again.”"

In REIT News

Deutsche Bank initiates ADC ($88) and EPRT ($38) with Buy ratings
Deutsche Bank initiates NNN ($46) and O ($62) with Hold ratings
Alliance Global Partners initiates CLDT with a Buy rating ($12 price target)
Raymond James upgrades EGP to Strong Buy from Outperform (raise price target by $15 to $200)
Raymond James downgrades PLD to Outperform from Strong Buy (lower price target by $5 to $125)
CUZ priced a 9.5 million share offering of common stock raising gross proceeds of $284 million (~$29.89/share) and intends to use the net proceeds to fund a portion of its deal after announcing that it is under contract to acquire 601 West 2nd Street, also known as Sail Tower, an 804,000 sf trophy lifestyle office property in Austin, for a net purchase price of $521.8 million noting that Sail Tower was developed in 2022 and the office space is 100% leased to a Fortune 20 company (S&P: AA+) through 2038
SKT acquired The Promenade at Chenal, a 270,000 sf upscale, open-air lifestyle shopping center in the growing Sunbelt market of Little Rock, AR for approximately $73 million using cash on hand and available liquidity
MAA announced the appointment of A. Bradley Hill as its President and Chief Executive Officer effective April 1, 2025, succeeding H. Eric Bolton, Jr. who is retiring as Chief Executive Officer and will serve as Executive Chairman upon the effective date of the transition as the Nominating and Corporate Governance Committee of its Board of Directors plans to nominate Mr. Hill for election by shareholders to serve on the Board of Directors at the 2025 Annual Meeting of Shareholders while Mr. Bolton will continue to serve as Chairman of the Board of Directors
VICI entered into an amendment and consented to the assignment of the master lease agreement with PURE Canadian Gaming Corp. to an affiliate of Indigenous Gaming Partners Inc. and in connection with entering into the amendment to the PURE Canadian master lease, VICI received a 5-year right of first offer on future sale-leaseback transactions and any additional properties acquired pursuant to the ROFO will be added to the master lease
WSR expanded its relationship with the rapidly growing, High Value. Low Price. (HVLP)® gym brand EoS Fitness which will open an approximate 40,000 sf location at Windsor Park Center in San Antonio marking the second lease agreement the Company has executed with the leading national gym chain
Yesterday, KRG announced that it has partnered with Fifth Wall to invest in its platform and underscores its dedication to leveraging operational and investment expertise to continually optimize its portfolio for maximum value creation and shareholder return

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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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