The Daily REITBeat | Thursday, October 31st, 2024

"Dragging Down"

Author

David Auerbach
October 31, 2024

Good Morning!

Dow futures down around 175 points at the time of this writing as talking heads focus on a several big earnings reports, today’s big economic calendar including the PCE report and tomorrow’s October Nonfarm Payrolls report. A spooky Halloween indeed!

From Bloomberg

  • "Stocks extended declines on the busiest day of the earnings season as investors digested results from Microsoft Corp. and Meta Platforms Inc. as well as economic data that blurred the picture for Federal Reserve interest-rate cuts.

  • Nasdaq 100 contracts retreated more than 1% before paring the drop, with Microsoft and Meta both down as much as 4% in pre-market trading. The slide in the two stocks combined represented roughly half of the losses in the Nasdaq futures, according to Bloomberg calculations. Amazon.com Inc. and Apple Inc. are due to report today. 

  • The “disappointing” set of results from Microsoft and Meta was hurting sentiment, said Marija Veitmane, a senior multi-asset strategist at State Street Global Markets. Investors are questioning whether the companies can sustain profit growth while ramping up spending on artificial intelligence and cloud services.

  • “The market is concerned with the continued increase in investments, and that is likely to weigh on stocks in the short term,” she said. “In the medium term, however, we still see weakness in tech stocks as a buying opportunity. It’s a very crowded position, so it is getting sold on any sign of disappointment, but we always see investors coming back as there’s no other alternative if you want quality.”

  • Among other premarket stock movers, Uber Technologies Inc. slumped following a muted holiday forecast for the ride-hail service. Estee Lauder Cos. Inc. tumbled 18% after the cosmetics maker pulled its guidance for the year. EBay Inc. dropped after missing revenue forecasts. Comcast Corp. jumped after a profit beat. "

In REIT News

  • BNP Paribas Exane upgrades OHI to Outperform from Neutral (raise price target by $12 to $49)

  • BNL, CIO, EPR, EQIX, EQR, FCPT, FPI, FRT, INVH, IRT, KIM, KRG, MAA, NNN, NSA, OHI, OPI, PGRE, PKST, PSA, UDR, UNIT, VRE, VTR, WSR announced earnings

  • CPT, CUBE, SBRA, VICI announce earnings after the close of trading while SPG announces tomorrow morning before the open

  • CTRE upsized and priced an underwritten public offering of 13.8 million shares of common stock at $32/share raising gross proceeds of $441.6 million and intends to contribute the net proceeds to its operating partnership which will in turn use the proceeds from this offering to fund new investments including to acquire 31 skilled nursing facilities through a joint venture arrangement

  • PEB provided an update regarding the impact of Hurricane Milton and other recent named storms on its properties and sees 3Q AFFO impacted by 1 penny while 4Q AFFO will be impacted by 8 cents/share as LaPlaya’s Beach House building (79 rooms) remains closed for repairs primarily due to water and sand infiltration affecting ground-floor guestrooms and the resort's pools are also closed for temporary clean-up and repairs, with reopening expected in the near future while the Company currently anticipates that repair costs will not be material and expects that property, flood, and business interruption insurance, net of deductibles, will substantially mitigate the financial impact

  • WSR responded to MCB’s recent indication of interest and “the Whitestone Board of Trustees has unanimously determined to reject your indication of interest and does not believe it reflects an appropriate valuation to enter into discussions toward a negotiated transaction” while MCB responded “encouraging Whitestone to address the following questions on its earnings call this morning, so that shareholders can have all the facts regarding Whitestone's refusal to engage or present a compelling path to maximize shareholder value as a public company”

  • Yesterday morning, S&P assigned IRT a “BBB” issuer credit rating to the company and its operating partnership with a stable outlook

  • Yesterday morning, CBL announced the opening of Crunch Fitness at Hamilton Place in Chattanooga, TN as one of the final components of the property’s Sears redevelopment project and noted that the redevelopment, which commenced in 2019, brought a variety of new destinations to the property, including The Cheesecake Factory, Mean Mug Coffeehouse, Malone’s, Dave & Buster’s, DICK’S Sporting Goods, and an Aloft by Marriott hotel

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Have a great day!

David Auerbach & Mary Jensen