The Daily REITBeat | Monday, December 2nd, 2024

"Rally Paused?"

Author

David Auerbach
December 02, 2024

Good Morning!

Futures relatively quiet at the time of this writing as talking heads focus on Cyber Monday/Thanksgiving weekend retail sales along with a big economic calendar of data this week including the November Nonfarm Payrolls report.

From Bloomberg

  • "The dollar pushed higher as the crisis swirling around the French government deepened, dragging on the euro. Treasuries fell as traders prepared for US data that may influence the outlook for interest rates.

  • In stocks, US futures posted small moves, suggesting a pause in the rally that just produced the S&P 500’s strongest month of the year. In Europe, Stellantis NV shares plunged more than 8% after Chief Executive Officer Carlos Tavares stepped down from the automaker following a dispute with the board.

  • The Bloomberg dollar index climbed 0.5%, while the euro fell as the French government sought to avoid being toppled by the far-right in a stand-off over the nation’s budget. French bonds and stocks bounced back after Prime Minister Michel Barnier offered final-hour concessions on some demands from Marine Le Pen’s party.

  • “There’s certainly a political instability and the securities, the French government bonds, are pricing that instability,” Ecaterina Bigos of AXA Investment Management told Bloomberg TV. “Political instability creates uncertainty, but what is more important is what is France going to do to bring that deficit down?”"

In REIT News

  • Morningstar downgrades MAC to Hold from Buy (maintain $24 price target)

  • STRW commenced an underwritten public offering of its common stock and intends to contribute the net proceeds to its operating partnership which will use the proceeds from this offering to finance acquisitions of new investments, pay down existing debt, and for general corporate purposes

  • On Wednesday, FSP announced that Bruce J. Schanzer will join the Company’s Board of Directors and serve as a member of the Audit Committee, effective November 27, 2024 and with the addition of Mr. Schanzer to the Board, the Board will be comprised of eight directors, seven of whom are independent plus entered into a Cooperation Agreement with Converium Capital and Erez Asset Management, pursuant to which Converium Capital and Erez Asset Management will vote their shares in favor of all of the Board’s director nominees at the 2025 Annual Meeting of Stockholders

  • On Wednesday, FCPT announced the acquisition of five Outback Steakhouse properties located in strong retail corridors across Texas (3), Florida (1), and Missouri (1) for $19.7 million from the same Seller as that of the Bloomin’ Brands 19-property portfolio the Company closed in August 2024 and noted that the properties are corporate operated under long-term net leases which priced at a cap rate in range with previous transactions

  • On Wednesday, NXRT announced the closing of 17-property agency mortgage refinancings through J.P. Morgan Chase Bank and with the closing of these 17 loan agreements, and together with the 17 loan agreements previously entered on October 1, 2024, the Company has refinanced 34 loans for total gross proceeds of $1.469 billion, which, in the aggregate, represents approximately 97.8% of the Company's total outstanding debt

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Have a great day!

David Auerbach & Mary Jensen