The Daily REITBeat | Monday, December 9th, 2024

"An Upsurge in Risk?"

Author

David Auerbach
December 09, 2024

Good Morning!

Futures slightly mixed at the time of this writing as talking heads focus on a busy economic calendar this week along with potential geopolitical risk from Syria and the Middle East.

From Bloomberg

  • "US equity futures struggled for direction, ceding brief gains sparked by China’s monetary-policy shift, as investors focused on an upsurge in geopolitical risk and the outlook for interest-rate cuts in the US and other major economies.

  • Contracts on the Nasdaq 100 eased 0.2% and those on the S&P 500 slipped 0.1%, after rising earlier following China’s announcement that authorities will embrace a “moderately loose” strategy next year. More steps on the fiscal side could be unveiled at Wednesday’s Central Economic Work Conference. While Beijing’s pledge boosted Asian markets and supported US-listed Chinese shares in premarket trading, gains elsewhere were short-lived.

  • Europe’s Stoxx 600 benchmark also handed back a rise, though sectors exposed to China, including miners and consumer products, advanced.

  • “The somewhat looser monetary policy stance by the Politburo is welcome news, though it won’t materially change the situation for the Chinese economy,” said Joachim Klement, head of strategy, economics and ESG at Panmure Liberum. “What is needed is substantially more fiscal stimulus that is supported by a looser monetary policy.”"

In REIT News

  • BMO initiates APLE ($18) and RHP ($133) with Outperform ratings

  • BofA initiates CTRE with a Buy rating ($33 price target)

  • BMO upgrades OHI to Outperform from Market Perform (maintain $45 price target)

  • BMO downgrades CTRE to Market Perform from Outperform (lower price target by $2 to $32)

  • HR announced that 1) Austen Helfrich, who has served as Interim Chief Financial Officer since October 1, 2024, has been formally appointed as the Company’s permanent Executive Vice President and Chief Financial Officer, effective immediately and 2) As part of a planned transition, Andrew Loope, Senior Vice President, Corporate Counsel and Secretary, will be promoted to Executive Vice President, General Counsel, and Secretary, succeeding John Bryant, effective January 1, 2025 plus 3) its Board of Directors has elected current director Tom Bohjalian as Independent Chair of the Board and 4) the Board has appointed three new independent directors with deep industry and leadership experience, David Henry, Glenn Rufrano and Don Wood, effective immediately, in connection with a cooperation agreement with Starboard Value LP

  • CTRE announced that it has acquired a 46-facility, 3,820-bed/unit skilled nursing and seniors housing portfolio located in the Midwest for a total investment amount of approximately $97 million (inclusive of transaction costs) noting that seven of the 46 facilities acquired are skilled nursing and assisted living campuses and an additional seven are assisted living facilities and in connection with the acquisition, the company entered into a triple-net master lease with a large skilled nursing investor and operator who will sublease the portfolio to several licensed subtenant operators plus also announced that, as anticipated in connection with the large Tennessee portfolio transaction announced on October 29, 2024, it has closed on its initial acquisition of 14 of the 31 facilities where the initial acquisition was, as previously announced, completed through a joint venture arrangement entered into between CareTrust and a large third-party healthcare real estate owner and at closing, CareTrust provided a combined common equity and preferred equity investment totaling approximately $245 million at an initial contractual yield on its combined preferred and common equity investments in the joint venture of approximately 9.0%

  • SLG announced that The Travelers Insurance Company has executed a 122,788 sf renewal at 485 Lexington Avenue as the company will remain on a portion of the seventh floor and all of the eighth and ninth floors for an additional 10 years and noted that this transaction increases the Company’s office leases signed year to date to 3,518,829 sf while maintaining a pipeline of more than 900,000 sf

  • AHT announced that its Crowne Plaza La Concha Hotel in Key West, FL has completed the conversion to a Marriott Autograph Collection® property and is now called the Autograph La Concha

  • IRM announced that it has elected June Yee Felix to the Board of Directors effective January 1, 2025

  • On Friday, S&P Global announced TRNO will be added to the S&P SmallCap 600 Index prior to the open of trading on Monday December 23rd, 2024 plus the company announced that it acquired a vacant industrial property located in Long Island City Queens, New York on December 5, 2024 for a purchase price of approximately $7.6 million noting that the property consists of one industrial distribution building containing approximately 17,000 sf on 0.4 acres and the estimated stabilized cap rate is 5.7%

  • On Friday, S&P Global announced that HPP will be removed from the S&P SmallCap 600 Index prior to the open of trading on Monday December 23rd, 2024

  • On Friday, Fitch Ratings affirmed OHI’s ratings, including the “BBB-“ Issuer Default Rating, with a stable outlook

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Welcome your comments and feedback.

Have a great day!

David Auerbach & Mary Jensen