The Daily REITBeat | Monday, June 23rd, 2025

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Today’s Newsletter (June 23rd, 2025)

Futures in the red at the time of this writing as talking heads focus on the US strikes this weekend in Iran and the potential response as oil remains under close scrutiny. Busy economic calendar ahead this week as well.

From Bloomberg

  • "US equity futures wavered as investors assessed whether an immediate Iranian response to US strikes on its nuclear sites would significantly disrupt oil flows from the Middle East. Crude prices trimmed earlier gains.

  • S&P 500 contracts dropped 0.1% after swinging between losses and gains. Brent crude pared an advance of as much as 5.7% to about 1.2%, trading below $78 a barrel. The dollar strengthened 0.5% against a basket of currencies, advancing against all Group-of-10 peers as traders hedged against the risk of further oil price gains.

  • Oil, which has risen more than 12% since the onset of the Israel-Iran conflict, remained the central focus as any interruption to traffic through the Strait of Hormuz raises the specter of a spike in energy prices and higher inflation. While Iran’s Foreign Minister Abbas Araghchi said the country reserved all options for a response, there haven’t yet been any signs of disruption to physical flows.

  • “Markets are judging that the response may not be quite as dramatic, because Iran would risk antagonizing others who are not yet pulled in,” John Bilton, head of multi-asset strategy at JPMorgan Asset Management, told Bloomberg TV. The market is “absorbing a geopolitical event that is going on and judging that this does not, on face value, change the direction of travel.”"

In REIT News

  • Wolfe Research reinstates COLD with an Outperform rating ($23 price target)

  • JPM reinstates HLT ($282), RHP ($117) and WH ($101) with Overweight ratings

  • JPM reinstates HST ($16) and MAR ($284) with Neutral ratings

  • JPM reinstates CHH ($124), PK ($10) and SHO ($8) with Underweight ratings

  • JPM upgrades VTR to Overweight from Neutral (raise price target by $2 to $72)

  • JPM upgrades BXP to Neutral from Underweight (raise price target by $6 to $78)

  • JPM downgrades COLD to Neutral from Overweight (lower price target by $3 to $21)

  • JPM downgrades FRT to Neutral from Overweight (maintain $108 price target)

  • JPM downgrades HHH to Neutral from Overweight (lower price target by $6 to $76)

  • JPM downgrades LINE to Underweight from Neutral (lower price target by $5 to $50)

  • Morgan Stanley downgrades LINE to Equalweight from Overweight (lower price target by $25 to $50)

  • GMRE announced that Mark Decker, Jr. has been appointed as the Company’s Chief Executive Officer and President, effective immediately as Mr. Decker, who will join the Board of Directors, succeeds Jeffrey Busch, who will continue to serve on the Board as non-executive Chairman

  • HR announced changes to its Board of Directors immediately reducing the size from 12 to 7 members which is part of a thoughtful effort to better align the size of the Board with other companies in the REIT industry, while maintaining the Board’s commitment to operating with best practices of corporate governance and five directors, Nancy Agee, Ajay Gupta, James Kilroy, Peter Lyle, and Christann Vasquez voluntarily retired from the Board, effective June 18, 2025

  • GNL completed the final phase of its multi-tenant portfolio sale to RCG Ventures, LLC on June 18, 2025, including 12 encumbered properties which generated approximately $313 million in gross proceeds, bringing total gross proceeds from the portfolio sale to $1.8 billion and the company plans on using the incremental net proceeds from the third phase of the multi-tenant portfolio sale to further reduce leverage by paying down the outstanding balance on its Revolving Credit Facility

  • SAFE closed on the acquisition of an existing ground lease beneath the Asher Adams hotel in Downtown Salt Lake City noting that the 225-key, full-service hotel was completed in 2024 and operates as part of Marriott's Autograph Collection and the company’s diversified portfolio now stands at 150 ground leases across the country

  • On Friday, ONL confirmed its receipt of an unsolicited, non-binding indication of interest from Kawa Capital Management, Inc. to potentially acquire all of the outstanding shares of common stock of the Company not already owned by Kawa for cash consideration of $2.50 per share as Kawa currently beneficially owns 5,474,027 of the outstanding shares of the Company’s common stock (approximately 9.7% based on its most recent Schedule 13D filing dated June 20, 2025)

  • On Friday, Fitch Ratings downgraded HPP and its limited partnership’s Long-Term Issuer Default Ratings to “B+” from “BB-“ and its preferred stock rating to “B-“ from “B” with a stable outlook

  • On Friday, JBGS acquired Tysons Dulles Plaza, a 15-acre office campus in the heart of Tysons, VA noting that the three-building campus encompasses approximately 500,000 square feet of offices and 1,553 parking spaces as the company intends to re-entitle and redevelop one of the three office buildings for residential use while the other two buildings will be enhanced and modernized and remain in long-term operation for office tenants

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Have a great day!

David Auerbach