The Daily REITBeat | Friday, January 3rd, 2025

"Stop the Streak?"

Author

David Auerbach
January 03, 2025

Good Morning!

Futures in the green at the time of this writing as talking heads focus on ISM Manufacturing data coming due this morning, President Biden’s decision to block US Steel/Nippon Steel merger, today’s US House Speaker vote and the upcoming inauguration.

From Bloomberg

  • "US equity futures posted modest gains, suggesting Wall Street stocks may finally halt a five-day losing streak that’s the longest since April.

  • S&P 500 contracts climbed 0.2%, with those for the tech-heavy Nasdaq 100 up 0.3%. Tesla Inc. gained in premarket, rebounding partially from Thursday’s slump prompted by disappointing vehicle sales numbers. United States Steel Corp. fell more than 9% after reports that President Joe Biden has decided to block Nippon Steel Corp.’s purchase of the company.

  • It’s been a volatile week for stocks, with the S&P 500 index posting intraday gains in the previous two sessions, only to close lower. US manufacturing data due later will give investors clues on the health of the economy while they look ahead to Donald Trump’s Presidential inauguration 17 days away to reduce uncertainty over future US policy. 

  • “We really need to see more of that clarity on January 20th for markets to have greater conviction,” said Laura Cooper, global investment strategist at Nuveen. “But I think US exceptionalism will continue to be the dominant theme at least in the first half of the year, regardless of what some of those policies that come through are.”"

In REIT News

  • Yesterday, Morningstar upgraded ELS to Buy from Hold (maintain $76 price target)

  • PINE announced the acquisition of a property leased to Lowe’s Home Improvement located in Knoxville, TN for $22.5 million and full year 2024 investments, including acquisitions and structured investment activity, totaled $134.7 million at a weighted average initial investment yield of 8.7% while in December 2024, the Company sold one former Mountain Express convenience store, a single-tenant Walgreen’s and a single-tenant AutoZone property for $5.4 million and 2024 disposition volume, inclusive of property and structured investment sales, totaled $75.6 million at a weighted average exit cash cap rate of 6.6%

  • UDR announced Executive Management promotions and Leadership Transition plans effective January 1, 2025 whereby 1) Mike Lacy has been promoted to Chief Operating Officer after having served as Senior Vice President – Operations since 2019; 2) Joe Fisher has been appointed to the role of Chief Investment Officer in addition to his roles as President and Chief Financial Officer; 3) the Company will initiate an executive search process to recruit a new Chief Financial Officer and upon the successful hire of a new CFO, Mr. Fisher will relinquish his responsibilities in that capacity and retain the roles of President and Chief Investment Officer

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Welcome your comments and feedback.

Have a great day!

David Auerbach & Mary Jensen