The Daily REITBeat | Friday, October 3rd, 2025

"Can't Slow Down the AI Train"

Author

David Auerbach
October 03, 2025

Today’s Newsletter (October 3rd, 2025)

Futures in the green at the time of this writing as talking heads focus on what should be today’s big jobs report along with more AI news as we could be seeing another major data center transaction worth up to $40 billion.

From Bloomberg

  • "A tech-fueled rally in global stocks continued unabated as another round of big-ticket artificial intelligence deals and partnerships stoked fresh optimism.

  • Asian technology stocks led the charge as Japan’s Hitachi Ltd. teamed up with OpenAI on energy and related infrastructure, while Fujitsu Ltd. expanded its collaboration with Nvidia Corp. Meanwhile, Global Infrastructure Partners was in advanced talks to acquire Aligned Data Centers, a major beneficiary of the AI spending boom, in a deal that could value the company at about $40 billion.

  • S&P 500 futures advanced 0.2%, setting the US benchmark on track for a sixth straight gain and its longest winning streak since July. The gauge has now gone 114 trading sessions without a 5% pullback, taking investors on a one-way march to all-time highs.

  • Investors are wagering that the billions pouring into the AI sector will translate into profits and extend gains in tech shares. The rally underscores how bullish momentum is overshadowing concerns about a US government shutdown, now in its third day and prompting a blackout in key economic data.

  • “Financial market volatility is falling across the board, partly driven by the US government shutdown and the delay to key data releases such as the September jobs data,” wrote ING strategists Chris Turner and Francesco Pesole. “Instead, investors remain transfixed by the AI-driven rally in megacap tech shares, which shows no signs of slowing.”"

In REIT News

  • Morgan Stanley upgrades CURB to Overweight from Equalweight (maintain $27 price target)

  • Baird downgrades RLJ to Neutral from Outperform (lower price target by $1.50 to $7.50)

  • Yesterday, Freedom Broker initiated MDV with a Buy rating ($19 price target)

  • In an 8-K filing, SITC announced an agreement to sell Nassau Park Pavilion located in Princeton, NJ for an aggregate price of $137.6 million in cash

  • Yesterday, S&P lowered OPI’s issuer credit rating to “SD” (Selective Default) from “CCC-“ plus lowered the issue-level ratings on the company’s senior secured notes due March 2027 to “D” from “CCC+” and our rating on the senior secured notes due in September 2029 to “D” from “CCC-“

  • Yesterday, S&P affirmed PK’s “BB-“ issuer credit rating and “BB” issue-level rating on the senior unsecured debt plus revised its outlook to negative from stable

  • Yesterday morning, S&P affirmed HPP’s “B” issuer credit rating and “CCC” issue-level rating on its preferred stock plus raised its issue-level rating on the senior unsecured notes to “B+” from “B” and revised its outlook to stable from negative

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Have a great day!

David Auerbach