The Daily REITBeat | Thursday, October 10th, 2024

"What's At Stake?"

Author

David Auerbach
October 10, 2024

Good Morning!

Dow futures down around 25 points at the time of this writing as talking heads set the stage for today’s CPI report and potential impact on Federal Reserve interest rate policy. Hurricane Milton getting a lot of coverage as well.

From Bloomberg

  • "Equity futures pointed to a slightly softer open for Wall Street, as traders awaited inflation data that could show whether the Federal Reserve will opt for a slower pace of interest-rate cuts.

  • Contracts on the S&P 500 were down 0.2% after the index hit a record high on Wednesday. Ten-year Treasury yields held above 4%, near the highest levels since end-July. Bloomberg’s dollar index was steady after an eight-day streak of gains, its longest since April 2022. 

  • US consumer price data is expected to show inflation moderated further in September, supporting the view that the Fed will continue easing policy in the coming months. But a surprisingly strong jobs print for last month has forced traders to dial back rate-cut bets, with many expecting a 25-basis-points reduction in November.

  • A strong inflation reading could change the reaction function from the Fed, Bénédicte Lowe, a strategist at BNP Paribas Markets 360, said on Bloomberg TV.

  • “Given that equities are near all-time high in the US, close to multi-year highs in Europe, the risks are more skewed to the downside if we get a pick-up in inflation from here,” Lowe said."

In REIT News

  • Wells Fargo downgrades AMT to Equalweight from Overweight (lower price target by $15 to $230)

  • Compass Point upgrades AKR to Buy from Neutral (raise price target by $4 to $27)

  • Yesterday, Morningstar upgraded ELS to Buy from Hold (maintain $76 price target)

  • AIV announced that it is under agreement to sell, for $204 million, its interests in two real estate investments in the Edgewater neighborhood of Miami, FL where the two investments include the recently completed redevelopment of a 276-unit waterfront apartment building, known as The Hamilton, and the partnership interest in a 2.8-acre development site at 3333 Biscayne Boulevard

  • NHI issued an investor update noting that 1) it closed on a 10-asset portfolio acquisition from Spring Arbor consisting of assisted living and memory care communities in North Carolina totaling 522 units for $121.3 million with an initial cash yield of 8.23% funded using its revolving credit facility and represents its largest investment since 2020 plus 2) 2024 investments totaling $205.6 million at an initial yield of 8.4% and have signed LOIs on $34.8 million of transactions at an initial yield of approximately 8.3%

  • CTRE published its fourth annual corporate sustainability report which details progress the company has made toward its Environmental, Social, and Governance (ESG) initiatives

  • Yesterday morning, MCB Real Estate sent a letter to WSR’s Board of Trustees increasing the value of its proposal to acquire the company in an all-cash transaction where “under the terms of the revised proposal, Whitestone shareholders would receive $15.00 per share in cash, representing a 14.5% premium to Whitestone's share price as of June 3, 2024, the last trading day prior to the disclosure of MCB's previous proposal, a 11.4% premium to Whitestone's last trading share price, and a 61.8% premium to the Whitestone share price prior to the rumored Fortress proposal in October 2023”

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Have a great day!

David Auerbach & Mary Jensen