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- The Daily REITBeat | Monday, June 16th, 2025
The Daily REITBeat | Monday, June 16th, 2025
"A Contained Conflict Outlook?"
David Auerbach
June 16, 2025
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Futures in the green at the time of this writing as talking heads focus on the Israel/Iran conflict and the outlook that the issue will remain contained between the two countries as the other usual topics like commodities and treasuries draw a lot of attention.
With a busy economic calendar this week and another Fed meeting, buckle up for what should be a wild-ride with a Thursday break in the action.
From Bloomberg
"US stock futures staged a rebound and oil prices fell as investors grew confident that the conflict between Israel and Iran will remain contained.
S&P 500 contracts rose 0.5% as dip-buyers moved in following a pullback in the US benchmark of more than 1% on Friday. European and Asian stocks also advanced. Brent crude dropped 0.8% after initially spiking on the back of weekend attacks between the two arch adversaries.
Gold slipped 0.3% from an all-time high. Treasuries retreated on concerns that persistently higher energy prices could stoke inflation, with the 10-year yield rising three basis points to 4.43%.
The outbreak of hostilities between Israel and Iran on Friday disrupted the momentum that had driven the S&P 500 back near record levels and reversed April’s tariff-fueled losses. While markets initially adopted a cautious, risk-off stance to assess how the conflict might unfold, sentiment improved on Monday as investors grew more confident that the attacks were unlikely to draw in more parties."
In REIT News
On Friday, Morningstar downgraded ESS to Hold from Buy (maintain $311 price target)
ILPT priced $1.16 billion of five-year, interest-only fixed rate mortgage financing which is secured by a portfolio of 101 industrial properties located on the U.S. mainland and Hawaii noting that the closing is expected to occur on or about June 26, 2025 and the financing proceeds and $75 million of cash on hand will be used to fully repay $1.235 billion of floating rate mortgage debt due in October 2025, currently secured by substantially the same portfolio of properties plus the new mortgage financing is expected to reduce its interest expense by decreasing the amount of debt outstanding, lowering the interest rate to a fixed 6.399% and eliminating the need to purchase future interest rate caps on this tranche of debt
On Friday, FCPT announced the acquisition of a Tires Plus property located in a highly trafficked corridor in Georgia for $1.7 million noting that the property is corporate-operated under a triple net lease with approximately three years of term remaining and priced at a 7.4% cap rate on rent as of the closing date and exclusive of transaction costs
On Friday, Moody’s affirmed PDM’s “(P)Ba1” preferred stock shelf rating and the operating partnership’s “Baa3” issuer rating and senior unsecured rating plus its “(P)Baa3” unsecured shelf rating and revised its outlook to stable from negative
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David Auerbach