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- The Daily REITBeat | Thursday, June 12th, 2025
The Daily REITBeat | Thursday, June 12th, 2025
"Turned Up a Notch"
David Auerbach
June 12, 2025
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Futures in the red at the time of this writing as talking heads focus on today’s PPI report along with trade tariff discussions ramping up again as Boeing is also in the news following a crash in India this morning.
From Bloomberg
"Equities and the dollar retreated as dialed-up trade tensions and geopolitical unease set a broader risk-off tone across markets.
S&P 500 futures dropped 0.6%, putting the US benchmark on track for its first back-to-back loss this month. European stocks also fell while Asian equities were little changed. The dollar slid 0.6%, nearing its weakest level since 2022. Treasury yields weakened across the curve ahead of a closely watched $22 billion auction in the 30-year tenor.
US President Donald Trump ratcheted up trade uncertainty with remarks that he intends to impose unilateral tariffs on dozens of US trading partners in the coming weeks. Separately, market jitters intensified amid heightened tensions in the Middle East.
The cautious mood is stalling a rebound in US equities that had brought the S&P 500 within reach of its all-time high, even as questions persist over the economic impact of Trump’s trade agenda. Resilient earnings and limited economic fallout have supported the rally so far, but traders are questioning how much further the gains can stretch."
In REIT News
BNP Paribas Exane downgrades COLD to Neutral from Outperform (lower price target by $4 to $18)
BNP Paribas Exane downgrades LINE to Underperform from Neutral (lower price target by $11 to $42)
HPP announced the pricing of an underwritten public offering of 197,194,698 shares of its common stock and pre-funded warrants to purchase 71,863,597 shares of its common stock raising gross proceeds of $600 million as the shares of common stock are being sold at a public offering price of $2.23 per share and the pre-funded warrants are being sold at a public offering price of $2.22 per warrant, which represents the per share public offering price for the common stock, less the $0.01 per share exercise price for each such pre-funded warrant and the company plans to use the net proceeds to repay borrowings under its revolving credit facility, repay other indebtedness and/or for general corporate purposes
O priced €650 million of 3.375% senior unsecured notes due 2031 and €650 million of 3.875% senior unsecured notes due 2035 and intends to use the net proceeds for general corporate purposes, which may include, among other things, the repayment or repurchase of indebtedness, including borrowings under the revolving credit facilities and commercial paper programs, foreign currency swaps or other hedging instruments, the development, redevelopment and acquisition of additional properties, acquisition or business combination transactions, and the expansion and improvement of certain properties in the portfolio
SMA priced CAD $500 million of 3.91% series A senior unsecured notes due June 16, 2028 in a Canadian Maple Bond offering on behalf of its operating partnership and intends to use the net proceeds to repay outstanding higher interest rate indebtedness, fund acquisitions and for general corporate purposes
DHC announced the closing of a new $150 million secured revolving credit facility which is secured by 14 senior housing communities with 2,632 living units managed by Five Star Senior Living, the operating division of AlerisLife Inc., and provides DHC with enhanced liquidity to support its general business needs
CHCT Announced the release of its second Corporate Sustainability Report highlighting the Company's progress and its sustainability initiatives implemented in 2024 as the report is aligned with the Global Reporting Framework Initiative (GRI)
Yesterday morning, APLE announced the acquisition of the 126-room Homewood Suites by Hilton Tampa-Brandon for a total purchase price of $18.8 million (~ $149,000/key) which represents a 12% cap rate on trailing twelve-month results through April of this year and a high single-digit cap rate after all anticipated capital expenditures and as previously announced, the Company continues to have one additional hotel under contract for purchase, a Motto by Hilton that is under development in downtown Nashville, TN for an anticipated total purchase price of approximately $98.2 million with an expected 260 rooms, which the Company anticipates acquiring in late 2025 following completion of construction and the Company also continues to have one hotel under contract for sale, its 206-room Houston Marriott Energy Corridor for a gross sales price of approximately $16.0 million
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David Auerbach