The Daily REITBeat | Thursday, April 3rd, 2025

"Liberation Day Massacre?"

Author

David Auerbach
April 03, 2025

Good Morning!

Futures deep in the red at the time of this writing as talking heads focus on Liberation Day and the establishment of retaliation tariffs that some pundits have determined was “worse than expected” which have global markets on edge.

From Bloomberg

  • "Investors dumped stocks and fled for the safety of Treasuries as President Donald Trump’s bid to remake the world trading order threatened to undermine economic growth. The dollar headed for its steepest drop in two and a half years. 

  • US assets were among the worst affected, with futures on the S&P 500 slumping more than 3%. In premarket trading, stocks linked to global trade bore the brunt, with Apple Inc. down about 7%. Other big US technology names including Amazon.com Inc., Dell Technologies Inc. and Tesla Inc. all fell more than 4%. Apparel and shoe makers, including Nike Inc. and Deckers Outdoor Corp, slid about 11%, as hefty tariffs were imposed on Vietnam and other production hubs. 

  • It was a similar picture in Europe, where consumer goods firms including Adidas AG and Puma SE fell almost 10%. The Stoxx 600 index slipped 1.5%. Asian stocks posted heavy losses earlier, with Tokyo’s Nikkei index losing almost 3%.

  • Trump’s decision to slap a minimum 10% tariff on all exporters to the US, and additional duties for its biggest trading partners including China, Japan and the European Union, marks a dramatic escalation of the trade war. With China and the European Union pledging retaliation, investors are snapping up haven assets, knocking ten-year Treasury yields to the lowest in more than five months. The yen and Swiss franc rallied, while gold hit a new record high before the rally stalled. 

  • “I don’t think the equity market has priced in the worst-case scenario for tariffs,” said Justin Onuekwusi, chief investment officer at wealth manager St James’s Place. “There is a big risk here that the market starts to aggressively price in these current tariff rates and significant retaliation.”"

In REIT News

  • B. Riley resumes DHC with a Buy rating ($4.50 price target)

  • B. Riley resumes GMRE with a Neutral rating ($9 price target)

  • UMH announced an update on 1Q’25 operating results commenting that 1) it converted 115 new homes from inventory to revenue generating rental homes and now owns approximately 10,400 rental homes with an occupancy rate of 94.7%; 2) Same Property occupancy increased by 113 units during the first quarter and 227 units over last year to 88%; 3) UMH achieved gross home sales revenue of $6.7 million compared to $7.4 million last year, representing a decrease of approximately 9.5% and included in the first quarter sales last year was the liquidation of $730,000 of inventory at a sales center that was leased to a third-party operator and when excluding these sales, gross sales increased by 0.5% over last year; 4) Our occupancy gains and rent increases achieved throughout 2024 and thus far in 2025 have increased our April 2025 rental and related charges by approximately 9% over April 2024 while rental and related charges for the first quarter were approximately $54.9 million compared to $50.7 million last year, representing an increase of approximately 8.3%; 5) issued and sold approximately 515,000 shares of Common Stock through our ATM sale program at a weighted average price of $18.21 per share, generating gross proceeds of $9.4 million and through the Preferred ATM sale program, we issued and sold approximately 49,000 shares at a weighted average price of $23.03 per share, generating gross proceeds of approximately $1.1 million; 6) closed on the acquisition of two age-restricted manufactured home communities, located in Mantua, NJ for a total purchase price of $24.6 million as these communities contain 266 developed homesites, of which 100% are occupied and situated on approximately 38 acres

  • PINE announced its investment and disposition activities for the first quarter of 2025 commenting that total investment activity during the first quarter of 2025 includes $79.2 million of acquisition and structured investment transactions representing a weighted average initial investment yield of 9.0% while disposition activity includes $11.7 million of asset sales representing a weighted average exit cash cap rate of 9.1% and during the quarter ended March 31, 2025, the Company repurchased 273,825 shares of common stock at a weighted average gross price of $16.33 per share, for a total cost of $4.5 million

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Have a great day!

David Auerbach