The Daily REITBeat | Friday, December 6th, 2024

"Sitting on Hands?"

Author

David Auerbach
December 06, 2024

Good Morning!

Futures slightly in the red and somewhat muted at the time of this writing as talking heads focus on today’s November Nonfarm Payrolls report and potential impact on Federal Reserve interest rate policy outlook heading into the new year.

From Bloomberg

  • "A cautious tone dominated markets before a key US jobs report that may give traders insight on the Federal Reserve’s policy path.

  • US equity futures posted small moves. Modest gains in the dollar put the greenback on course to rise for the ninth week out of the last 10. Treasury yields ticked higher. Oil extended its slide to a third day.

  • Economists estimate that US nonfarm payrolls rose by 220,000 in November as hiring rebounded from weather-related and strike disruptions. It’s the final payrolls report before the Fed’s next interest-rate decision, with swaps trading putting the odds of a quarter-point reduction later this month at around 65%.

  • “If we get a surprisingly hot number, you can expect pricing to come back more to 50-50,” said Michael Brown, a senior strategist at Pepperstone. “Given the time of the year, market volumes are lighter than usual, so you are more likely to see an outsize reaction — and that’s another reason for people to sit on their hands.”"

In REIT News

  • BMO upgrades BRX to Outperform from Market Perform (raise price target by $3 to $33)

  • BMO downgrades PLD to Underperform from Market Perform (lower price target by $16 to $104)

  • In an 8-K filing, WELL announced that on December 3, 2024, Diana W. Reid resigned from the Board of Directors effective immediately noting that Ms. Reid’s resignation is not the result of any disagreement with the Company on any matter related to the Company’s operations, policies, or practices, given her new role as the chief executive officer of Federal Home Loan Mortgage Corporation and the size of the Board has been reduced to nine directors

  • Yesterday morning, STRW priced an underwritten public offering of 3,333,334 shares of its common stock for total gross proceeds (before underwriters' discounts and commissions and offering expenses) of approximately $35 million and intends to use the net proceeds to finance acquisitions of new investments, pay down existing debt and for general corporate purposes

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Have a great day!

David Auerbach & Mary Jensen