The Daily REITBeat | Friday, October 4th, 2024

"A Watchful Eye"

Author

David Auerbach
October 04, 2024

Good Morning!

Dow futures up over 50 points at the time of this writing as talking heads focus on today’s September Nonfarm Payrolls report and Middle East situation as oil prices continue their move.

From Bloomberg

  • "US equity futures posted modest gains ahead of key American jobs data that could clarify the path for interest rates. Oil prices extended their rally as traders tracked the escalation of hostilities in the Middle East.

  • Contracts on the S&P 500 were up 0.3%. Treasuries were steady after selling off on Thursday, while an index of dollar strength was set for the biggest weekly gain in nearly six months amid reduced wagers on aggressive monetary policy easing by the Federal Reserve. 

  • While investors keep a watchful eye over geopolitical events, they are also assessing the latest signals on the health of the US economy. Friday’s jobs report is expected to show an increase in payrolls for September, while the unemployment rate is forecast to hold steady at 4.2%."

In REIT News

  • HSBC upgrades EQIX to Buy from Hold (raise price target by $135 to $1000)

  • HSBC upgrades DLR to Hold from Reduce (raise price target by $36 to $160)

  • JPM initiates CURB with an Overweight rating ($25 price target)

  • Yesterday, Janney initiated SILA with a Buy rating ($28 price target)

  • UMH announced an update on 3Q’24 operating results commenting that 1) During the third quarter, UMH converted 179 new homes from inventory to revenue generating homes. UMH now owns approximately 10,300 rental homes with an occupancy rate of 94.4%; 2) During the third quarter, UMH sold 100 homes of which 32 were new home sales. Gross home sales revenue for the third quarter was $8.7 million as compared to $7.9 million last year, representing an increase of approximately 10%; 3) Year to date, overall occupancy increased by 235 units to 87%. During the third quarter, overall occupancy increased by 39 units. Year over year, overall occupancy increased by 271 units; 4) Our occupancy gains and rent increases achieved throughout 2023 and 2024 have increased our September 2024 rental and related charges by approximately 8%, resulting in our annualized monthly rent roll generating $206 million; 5) We issued and sold approximately 5.7 million shares of Common Stock through our At-the-Market Sale program at a weighted average price of $18.93 per share, generating gross proceeds of $108.4 million

  • CURB announced tax basis where the fair market value of its common stock received by SITC shareholders in the Distribution for federal income tax purposes has been determined to be $22.29/share based on the average closing price per share of its common stock on its first three trading days beginning October 1, 2024

  • Yesterday morning, NXRT announced the closing of 17-property mortgage refinancings through J.P. Morgan Chase Bank and The Federal Home Loan Mortgage Corporation plus expects to enter into 17 additional loan agreements on November 29, 2024, for total gross proceeds of $1.466 billion, which, in the aggregate, will represent ~ 97.7% of the Company's total outstanding debt and also closed on the sale of Stone Creek at Old Farm in Houston, TX, a 190-unit property built in 1998 noting that net proceeds from the sale were approximately $23.7M, delivering a trailing nominal tax and insurance adjusted cap rate of 5.25% and a 2.19x multiple on invested capital

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Welcome your comments and feedback.

Have a great day!

David Auerbach & Mary Jensen