The Daily REITBeat | Friday, September 27th, 2024

"Respect The Data"

Author

David Auerbach
September 27, 2024

Good Morning!

Dow futures up around 25 points at the time of this writing as talking heads set the stage for a big day of economic calendar releases as we set the stage for next week’s September jobs reports.

From Bloomberg

  • "US futures edged lower at the end of a week that saw benchmarks on Wall Street and in Europe hit records amid optimism over central bank easing and stimulus from China. The yen rallied following Japanese election results.

  • Contracts on the S&P 500 slipped after the underlying index hit its 42nd closing high this year. Nasdaq 100 futures were down 0.2%, with chipmaker Nvidia Corp. dropping 1% in premarket trading. The dollar and 10-year US Treasury yields ticked lower. 

  • Traders are looking out for the Federal Reserve’s preferred inflation indicator for clues on the trajectory of interest rates after economic growth was revised higher on Thursday. China’s daily stimulus announcements, coupled with mounting bets for deeper interest-rate cuts from the Fed and the European Central Bank have stoked risk appetite across markets this week. 

  • “The data’s saying soft landing — you have to respect the data — but the forward-looking indicators are flagging warning signs,” said Andrew Pease, global head of investment strategy at Russell Investments Ltd. “The descent into a soft landing will always look the same as the start of a recession. And you won’t know till after you’ve got there.” 

  • Japan’s yen rebounded, climbing 1% against the dollar as Shigeru Ishiba won the vote for leadership of the nation’s ruling party. Ishiba, a party veteran who has served in several senior roles including defense minister, is seen as supportive of the Bank of Japan’s plan to gradually hike rates.” 

In REIT News

  • AHT announced that it was notified by the New York Stock Exchange on September 23, 2024, that it is not in compliance with Section 802.01C of the NYSE's Listed Company Manual, which requires listed companies to maintain an average closing share price of at least $1.00 over a consecutive 30 trading day period, and the Company plans to notify the NYSE within 10 business days of receipt of the notice that it intends to execute a 1-for-10 reverse stock split in order to regain compliance

  •  PSTL announced an update on its ongoing lease negotiations with the USPS commenting that they have agreed to new rents on all expired 2023 leases and the majority of the expired and scheduled to expire 2024 leases and as of September 25, 2024, the Company had received 162 fully executed new leases from the USPS, representing 2023 and 2024 leases that have expired and are scheduled to expire where The 2023 leases received represent nearly 57% of the aggregate 2023 expired rent and the 2024 leases received represent 51% of the aggregate 2024 expired and scheduled to expire rent as this excludes leases subject to renewal options and leases negotiated by prior ownership and these executed leases contained 3% annual rent escalations resulting in 19% of the owned portfolio being subject to annual rent escalations

  • S&P announced that CURB will be added to the S&P SmallCap 600 index prior to the open of trading on Tuesday, October 1st

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Have a great day!

David Auerbach & Mary Jensen