The Daily REITBeat | Monday, April 21st, 2025

"Another Week, Another Red Start..."

Author

David Auerbach
April 21, 2025

Good Morning!

Futures in the red at the time of this writing as talking heads focus on President Trump’s potential efforts to remove Chairman Powell as Head of the Federal Reserve along with a busy earnings calendar and news about the passing of Pope Francis.

From Bloomberg

  • "US stock futures and the dollar weakened sharply as traders reacted to the possibility that President Donald Trump will try to remove Federal Reserve Chairman Jerome Powell. 

  • S&P 500 futures sank 1% and the dollar index weakened to a 15-month low with Wall Street set to re-open after the Easter break. Gold jumped above $3,390 an ounce. On Friday, National Economic Council Director Kevin Hassett said that Trump is studying whether he’s able to fire Powell. 

  • Trump  — frustrated that the central bank hasn’t moved to lower interest rates — posted on social media last week that Powell’s “termination cannot come fast enough!” Rebuking the Fed undermines the principle of central bank independence and risks politicizing US monetary policy in a way that markets will find deeply unsettling, said Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp.

  • “Frankly, firing Powell stretches belief,” said Wong. “If the credibility of the Fed is called into question, it could severely erode confidence in the dollar.” 

  • The yen, euro and Swiss franc rallied. Brent fell as much as 2% to below $67 a barrel. European stock markets were largely still shut for a public holiday."

In REIT News

  • Lucid Capital Markets initiates MDV with a Buy rating ($17.50 price target)

  • Raymond James upgrades CSR to Outperform from Market Perform ($66 price target)

  • Wolfe Research downgrades PLD to Peer Perform from Outperform

  • ELS announces earnings after the close of trading

  • LTC announced the appointment of David Boitano as Executive Vice President and Chief Investment Officer following the promotion of Clint Malin to Co-Chief Executive Officer in December 2024

  • On Thursday, ESRT signed a 34K square foot expansion and renewal lease with Carolina Herrera, Ltd. – a high-end New York City fashion house and subsidiary of Puig Brands – at 501 Seventh Avenue plus signed a renewal and 12,338 sf expansion lease with Workday, Inc. – the AI platform for managing people, money, and agents – for a total of 39,069 sf at the iconic Empire State Building

  • On Thursday, SMA announced that it has achieved the Security Interest Termination Conditions for its Credit Facility and 2032 Private Placement Notes which resulted in both facilities becoming fully unsecured where the credit spread pricing grid associated with Revolving Commitments under the Credit Facility was immediately reduced by 25 basis points, and the unused fees on the Credit Facility were reduced by five basis points while the Company elected to reduce the Revolving Commitments under the Credit Facility by $100 million and as a result of this election, the Total Commitments under the Credit Facility have been reduced to $600 million

  • On Thursday, FCPT announced the acquisition of an Outback Steakhouse property located in a strong retail corridor in Oklahoma for $1.6 million noting that the property is corporate-operated under a triple net lease with approximately four years of term remaining and priced at a 6.8% cap rate on rent as of the closing date and exclusive of transaction costs

  • On Thursday, CTRE announced its recommended cash offer for the acquisition of Care REIT by CR United Bidco Ltd for 108 pence per share to be full, fair, and final and the financial terms of the Acquisition therefore will not be increased, save that CareTrust and Bidco reserve the right to revise the financial terms of the Acquisition if: (i) there is an announcement of a possible offer or a firm intention to make an offer for CRT plc by any third party; or (ii) the Panel otherwise provides its consent (such consent to be given only in wholly exceptional circumstances) plus announced that its United States skilled nursing and seniors housing pipeline has reloaded to $500 million

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Welcome your comments and feedback.

Have a great day!

David Auerbach