The Daily REITBeat | Monday, October 14th, 2024

"Unfolding Easing Cycle?"

Author

David Auerbach
October 14, 2024

Good Morning!

Dow futures down around 100 points at the time of this writing as talking heads focus on a busy economic calendar week along with earnings season fully getting underway with the 10-year treasury creeping back towards 4.10%

From Bloomberg

  • "US equity futures started the week on a note of optimism as investors looked ahead to corporate results for further vindication of soft economic landing bets.

  • Contracts on the S&P 500 ticked higher and those on the rates-sensitive Nasdaq 100 rose 0.3%, pointing to extended gains for a rally that propelled the index to a fresh record last week. Oil fell as traders bet that China’s stimulus will fall short of boosting consumption. Cash Treasuries trading is closed Monday for a US holiday. 

  • A newly accommodative Federal Reserve is providing fresh fodder for bulls — but they’re also fighting against lofty valuations. The S&P 500’s 20% gain through September has been its strongest performance for the first nine months of a year since 1997, according to National Bank of Canada economists including Stefane Marion. That’s pushed earnings-based valuations pushed to rich levels across industries.

  • “It remains uncertain whether the market will finish the year as strongly as it began and whether this easing cycle will provide substantial momentum for equities,” the economists wrote in a note to clients. “The current easing cycle is unfolding in an environment of unusually high valuations.”

  • Meanwhile, China’s main CSI 300 Index rose about 2% in volatile trading Monday, after capping its worst week since late July as Beijing’s latest efforts to jumpstart growth disappoint those seeking more details on incentives.

  • Bitcoin climbed to the highest level in two weeks as investors took disappointment over China as good news for cryptocurrencies which are seen as potential beneficiaries of China stock outflows."

In REIT News

  • UBS initiates NTST with a Buy rating ($19 price target)

  • UBS initiates PINE with a Neutral rating ($19 price target)

  • Jefferies upgrades DEA to Buy from Hold (raise price target by $2 to $15)

  • PDM completed over 461,000 sf of leasing during the third quarter of 2024, with approximately 45% of this total leased square footage related to new tenants and bringing its in-service leased percentage to 88.8% as of September 30, 2024 where rents on leases executed during the third quarter for space vacant one year or less increased approximately 4.0% and 8.5% on a cash and accrual basis respectively

  • HIW announced after a thorough assessment of its Florida properties that its buildings have not sustained any notable damage from Hurricane Milton

  • IRT announced that its communities in Tampa and Orlando, FL were minimally impacted by Hurricane Milton

  • On Friday, CPT announced that preliminary reports indicate only minor damage to the Company's apartment communities located in the southeastern United States from Hurricanes Helene and Milton

  • On Friday, UMH announced its portfolio of manufactured housing communities in Florida experienced high winds and heavy rain which resulted in relatively minor damage from Hurricane Milton and do not expect the effects of the storm to have a material impact on its operations or financial results

  • On Friday, FCPT announced the acquisition of a Tires Plus property located in a strong retail corridor in Georgia for $2.1 million noting that the property is corporate-operated under a long-term triple net lease and priced at a cap rate in range with previous company transactions

  • On Friday, Fitch Ratings affirmed the Long-Term Issuer Default Ratings for AAT and its limited partnership at “BBB” with a stable outlook

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Welcome your comments and feedback.

Have a great day!

David Auerbach & Mary Jensen