The Daily REITBeat | Monday, May 12th, 2025

"A Major De-Escalation"

Author

David Auerbach
May 12, 2025

Good Morning!

Futures deep in the green at the time of this writing as talking heads focus on tariff trade progress with China as a starting agreement is in place to de-escalate the trade war. With a busy pivotal economic calendar week ahead, the news is welcome kicking off the week.

From Bloomberg

  • "Investors rushed back into US assets, powering a more than 3% surge in S&P 500 futures, after China and the US agreed to cut tariffs and de-escalate a trade war that had sown turmoil in global markets. Treasuries and gold tumbled.

  • Risk appetite on Wall Street was reignited after Treasury Secretary Scott Bessent hailed the trade discussions as “very robust and productive.” US megacap tech stocks, which had been hard hit this year, were on track to tally some of the biggest gains, with Nasdaq 100 futures poised to re-enter a bull market. Nvidia Corp., Amazon.com Inc., Apple Inc. and Tesla Inc. all rose more than 5% in premarket trading.

  • The dollar topped a one-month high. Gold fell more than 3%. The 10-year Treasury yield climbed seven basis points to 4.45% as traders pushed back the timing of possible interest-rate cuts. 

  • The breakthrough in the China-US talks delivers a shot of relief to investors who were bracing for the possibility that a spiraling trade war between the world’s biggest economic powers might cause a global recession. The countries will lower tariffs on each other’s products for 90 days, according to a joint statement released in Geneva.

  • “The risk of a deep and protracted US recession has gone,” said Guy Miller, chief market strategist at Zurich Insurance Co. “From a company earnings perspective the headwind to revenues has clearly diminished.”"

In REIT News

  • Jefferies upgrades HLT to Buy from Hold (raise price target by $68 to $296)

  • Jefferies upgrades MAR to Buy from Hold (raise price target by $77 to $303)

  • MAC announced 1Q earnings while LAND and SPG announce quarterly earnings after the close of trading

  • CTRE closed the acquisition of Care REIT plc, a United Kingdom-based healthcare real estate investment trust listed on the London Stock Exchange and noted that the transaction, first announced on March 11, 2025, marks its entrance into the UK market and represents a strategic step in the Company’s mission to expand and diversify its portfolio of healthcare real estate assets as it adds 132 care homes comprising approximately 7,500 beds and two healthcare facilities leased to the UK’s National Health Service, located throughout England, Scotland, and Northern Ireland and all properties are subject to long-term, triple-net leases across 14 operators, with a weighted average remaining lease term of approximately 20.2 years and annual inflation-based rent escalators, most with a 2% floor and 4% cap

  • On Friday, S&P raised OPI’s issuer credit rating to “CCC-“ from “SD” (Selective Default) and its issue-level ratings on the senior unsecured notes that were part of the debt exchange to “CC” from “D” with a negative outlook

Download today’s Daily REIT Beat here!

The Daily REITBeat 5-12-25.pdf612.02 KB • PDF File

Welcome your comments and feedback.

Have a great day!

David Auerbach