The Daily REITBeat | Thursday, May 15th, 2025

"Overheating?"

Author

David Auerbach
May 15, 2025

Good Morning!

Futures in the red at the time of this writing as talking heads focus on the Dick’s Sporting Goods/Foot Locker merger announcement among other topics as well as oil, Iran talks, Retail Sales/PPI data and the other usual suspects.

From Bloomberg

  • "Wall Street was heading for a pullback on Thursday and tech stocks fell as investors worried about an economic slowdown and overheated markets. Oil slumped more than 3%. 

  • S&P 500 futures slid 0.5%, with Nvidia Corp., Palantir Technologies Inc. and Tesla Inc. falling about 2% in early trading. The dollar weakened and US bonds were steady. Brent sank below $64 a barrel after President Donald Trump said the US is getting closer to a deal on Iran’s nuclear program, fueling concern that additional oil supply may pressure the market. 

  • Traders were looking ahead to a speech by Federal Reserve Chair Jerome Powell, as well as data on manufacturing and retail sales, for the next readout on US growth and inflation. Economists are expecting no growth in retail sales in April as consumers cut back on some purchases."

In REIT News

  • Raymond James upgrades CSR to Strong Buy from outperform (raise price target by $3 to $69)

  • Raymond James downgrades MAA to Outperform from Strong Buy (lower price target by $10 to $175)

  • Raymond James downgrades NXRT to Market Perform from Outperform

  • Scotiabank downgrades COLD to Sector Perform from Sector Outperform (lower price target by $4 to $20)

  • Yesterday, Morningstar upgraded AMT ($243) and VTR ($75) to Buy from Hold

  • Yesterday, Morningstar downgraded VNO ($31) and HLT ($225) to Sell from Hold

  • ADC Priced $400 million of 5.60% senior unsecured notes due 2035 on behalf of its operating partnership and intends to use the net proceeds for general corporate purposes, including to fund property acquisition and development activity, or for the repayment or refinancing of certain indebtedness

  • VNO announced that its 55% owned JV has entered into an agreement to sell 512 West 22nd Street, a 173,000 sf Class A office building, for $205 million noting that the sale is expected to close in the third quarter of 2025 and is subject to customary closing conditions plus a portion of the proceeds will be used by the joint venture to repay the $123.6 million mortgage loan encumbering the property

  • FVR announced 1Q earnings and reaffirms 2025 Adjusted FFO guidance of $1.20-$1.26/share

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Welcome your comments and feedback.

Have a great day!

David Auerbach