The Daily REITBeat | Thursday, March 20th, 2025

Author

David Auerbach
March 20, 2025

Good Morning!

Sorry about the wrong attachment yesterday. If you want yesterday’s note, just send me a message. Amateur night. I know :)

Futures in the red at the time of this writing as talking heads focus on yesterday’s Federal Reserve policy rate decision and the outlook for interest rate cuts in 2025.

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From Bloomberg

  • "US equity futures fell, ceding earlier gains, as doubts crept in about the Federal Reserve’s ability to significantly cut interest rates this year in the face of potentially inflationary trade tariffs. 

  • Contracts for the S&P 500 and the Nasdaq 100 dropped at least 0.4%, a day after Wall Street rallied on the Fed’s signal that it still sees room to ease policy this year. In premarket trading, Tesla Inc. slipped after the electric carmaker recalled a batch of Cybertrucks over a safety issue. Microchip Technology Inc. was undermined by its plan to sell depositary shares to repay debt., while US-listed shares in PDD Holdings Inc. slid as the Chinese budget-shopping site’s sales missed estimates for a third straight quarter, 

  • US markets have steadied somewhat from a bruising four-week stretch in which the S&P 500 slid into a correction. Yet concerns remain that President Donald Trump will continue hiking trade tariffs, hitting economic growth and fueling inflation. Sentiment was pressured by European Central Bank President Christine Lagarde, who said Thursday that US tariffs have raised uncertainty over the economic outlook.

  • “The fact that the Fed Chair didn’t play to recessionary fear helped sentiment, but I am a bit bothered by his characterization of the impact of tariffs on inflation as one-off,” Wei Li, global chief investment strategist at BlackRock International Ltd., said on Bloomberg Television. 

  • Traders pricing as many as three Fed cuts this year could end up disappointed, Li said, adding that “markets are still expecting the Fed to be able to come to the rescue of the economy if the economy slows down but the growth-inflation trade-off is becoming very tough indeed.”"

In REIT News

  • Wolfe Research initiates IVT with a Peer Perform rating

  • BofA resumes CCI with a Neutral rating (lower price target by $5 to $110)

  • FVR announced 4Q earnings and sees 2025 AFFO guidance of $1.20-$1.26/share

  • PLYM announced 1) it has acquired the second tranche of the previously announced Cincinnati small bay industrial portfolio consisting of four buildings totaling 240,578 sf for $17.9 million, representing an initial estimated net operating income yield of 7.0% noting that the portfolio is 100% leased to ten tenants, with a weighted average remaining lease term of 3.5 years plus 2) acquired a 263,000 sf warehouse facility in Cincinnati for $23.3 million, equating to an initial estimated NOI yield of 6.7% as the facility is 100% leased to a single tenant with a remaining lease term of 6.6 years and annual rent increases of 3.25% and 3) In Atlanta, the Company purchased Madison International’s 98% joint venture interest in a 297,583 sf warehouse facility for $23.9 million, which equates to an initial estimated NOI yield of 6.8% as the building is leased to a single tenant with a remaining lease term of three years, following a recent renewal on an as-is basis and 4) Across three separate transactions in Atlanta, Georgia and Cincinnati, Ohio, totaling 801,161 sf, the Company closed on $65.1 million in industrial properties, equating to an initial estimated NOI yield of 6.8% and taken together, these 100% leased properties feature a weighted average remaining lease term of 4.4 years

  • AHH announced three new office leases totaling approximately 20,000 sf with private equity firm Directional Capital, digital marketing firm Look Listen, and law firm Levy, Sibley, Foreman & Speir, LLC at The Interlock in Atlanta, GA

  • ELME announced the appointment of Ron D. Sturzenegger to its Board of Trustees effective immediately and With Mr. Sturzenegger’s appointment as an independent trustee, the Board is now comprised of eight trustees, seven of whom are independent

  • SLG announced the appointment of Peggy Lamb as an Independent Director to the company's Board of Directors

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Have a great day!

David Auerbach