The Daily REITBeat | Monday, March 31st, 2025

"A Bruising Quarter"

Author

David Auerbach
March 31, 2025

Good Morning!

Futures in the red at the time of this writing as talking heads focus on the end of the first quarter along with Liberation Day a couple of days from now with tariff uncertainty weighing on the markets. 10-year hovers around 4.198%.

From Bloomberg

  • "Global stock markets tumbled, with S&P 500 futures heading for a 1% loss on the final day of a bruising quarter, on intensifying worries about the impact of US tariffs. Gold topped a record and Treasuries rallied.

  • Nasdaq 100 contracts dropped 1.4%. Nvidia Corp., Palantir Technologies Inc. and Tesla Inc. sank more than 3% in premarket trading. Europe’s Stoxx 600 index slid 1.2% and Asian stocks suffered sharp losses, with the Japan’s Nikkei 225 index losing 4% and Taiwan’s stock index falling into a correction.

  • The risk that tariffs will hurt the global economy has propelled the S&P 500 to a 5.1% plunge in the first quarter, which would be the worst since 2022 and wiped about $5 trillion off the value of US equities since late February. 

  • Goldman Sachs Group Inc.’s David Kostin cut his S&P 500 target for a second time this month. He expects the benchmark to end the year around 5,700 points versus his previous estimate of 6,200, citing a higher recession risk and tariff-related uncertainty. 

  • “It’s all about the tariff uncertainty,” Jefferies strategist Mohit Kumar said. “The negative scenario for the market would be that April 2 just marks the starting point of negotiation, and we have an extended period of negotiations where there is not much clarity on the tariff structure.”"

In REIT News

  • Compass Point downgrades IIPR to Sell from Neutral (lower price target by $11 to $50)

  • On Friday, JPM resumed GLPI with a Neutral rating ($54 price target)

  • On Friday, ARC Independent Research upgraded AMT to Buy from Hold (raised price target by $10 to $235)

  • BXP announced that its operating partnership has (1) amended its existing unsecured revolving credit facility to extend its maturity date and increase its revolver borrowing capacity by $250 million to $2.25 billion, (2) extended its $700 million unsecured term loan facility, and (3) increased the size of its unsecured commercial paper program by $250 million to $750 million

  • On Friday, IIPR announced a significant tenant replacement and renewal initiative aimed at enhancing the performance of its real estate portfolio and driving long-term value for shareholders as this initiative focuses on strengthening tenant credit profiles and optimizing occupancy of the Company’s properties to align with evolving market demands noting that it declared each of the 4Front Leases, the Gold Flora Leases, and the TILT Leases in default where contractual base rent, property management fees and estimated tax and insurance payments owed as of March 28, 2025, for each of the 4Front Leases, the Gold Flora Leases, and the TILT Leases, totaled $9.0 million, $1.7 million, and $2.4 million, respectively and it will take action to pursue its rights under such leases aggressively, which may include, but is not limited to, commencing eviction proceedings as the Company deems necessary

  • On Friday, FCPT announced the acquisition of six newly constructed Whataburger properties located in strong retail corridors in Alabama for $16.8 million from MWB Restaurants via sale-leaseback noting that the properties are franchisee-operated under long term, triple net leases with approximately 20 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 Friday, S&P raised all of WELL’s ratings, including its issuer credit rating, to “A-“ from “BBB+” with a stable outlook

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Welcome your comments and feedback.

Have a great day!

David Auerbach