The Daily REITBeat | Thursday, October 3rd, 2024

"A Raft of Data"

Author

David Auerbach
October 03, 2024

Good Morning!

Dow futures down around 75 points at the time of this writing as talking heads focus on a busy economic calendar ahead of tomorrow’s September Nonfarm Payrolls report along with Israel/Iran conflict escalation as today is a holy Jewish holiday.

From Bloomberg

  • "US equity futures fell as the risk of escalating conflict in the Middle East damped risk appetite ahead of economic data that may shed more light on the Federal Reserve’s policy path. Crude oil extended gains.

  • Contracts on the S&P 500 and Nasdaq 100 indicated a soft open on Wall Street, with US-listed China stocks sliding in premarket trading after big gains this week. Among single stocks, Levi Strauss shares slumped after the apparel company lowered its revenue growth outlook for the full year. Bloomberg’s dollar index gained for a fourth day, bolstered by a rise in Treasury yields. 

  • Global equities are on course for their first weekly loss in four as the world awaits Israel’s response to a missile strike by Iran. Israel’s warplanes bombed Beirut overnight, after eight of its soldiers were killed in southern Lebanon in battles against Hezbollah. Amid the geopolitical uncertainty, investors are also bracing for a raft of US data, including jobless claims today, for signals on the health of the economy.

  • International conflict has returned as a driver for markets, which have lately been directed mainly by the US economic cycle, said Michael Metcalfe, head of macro strategy at State Street Global Markets. “There might be a pressure to rebalance, because markets are stretched and I don’t see that as being particularly positive for US equities,” he said."

In REIT News

  • BofA upgrades IVT to Buy from Neutral (raise price target by $3 to $33)

  • Yesterday, Stifel initiated CURB with a Buy rating ($24.75 price target)

  • CTRE announced that it has acquired a 4-facility, 396-bed/unit skilled nursing portfolio located in the Mid-Atlantic for a total investment amount of approximately $74.7 million (inclusive of transaction costs) plus reported that subsequent to the closing of this acquisition, the reloaded investment pipeline sits at $240 million of near-term, actionable opportunities, not including larger portfolios the company is reviewing

  • FPI announced that it is selling a portfolio of 46 farms, comprising 41,554 acres of farmland, for $289 million in a single transaction with Farmland Reserve, Inc noting that the all-cash deal has been finalized by both parties and is scheduled to close on October 16, 2024, once all conditions to closing are satisfied and FPI’s total gain on sale will be approximately $50 million, or approximately 21% over the aggregate net book value of the farms comprising the Portfolio

  • PLYM announced an activity update for 3Q’24 noting that 1) Leases commencing during the third quarter ended September 30, 2024, totaled an aggregate of 1,095,115 square feet, all of which have terms of at least six months. These leases included 598,858 square feet of renewal leases and 496,257 square feet of new leases. Rental rates under these leases reflect a 12.2% increase on a cash basis with renewal leases reflecting a 9.1% increase on a cash basis and new leases reflecting a 15.7% increase on a cash basis; 2) During the quarter, Plymouth acquired a 1,621,241-square-foot portfolio of industrial properties located across the Southeast and Northeast submarkets of Memphis, Tennessee. The purchase price of $100.5 million equates to an initial NOI yield of 8.0%. The portfolio consists of 14 buildings that are currently 94.0% leased to 46 tenants with a weighted average remaining lease term of approximately 3.4 years; 3) Completed the previously announced sale of its 527,127-square-foot industrial property in Columbus, Ohio, to the tenant for approximately $21.1 million in net proceeds

  • CSR announced 1) that on October 1, 2024, it closed on the acquisition of 129-home apartment community The Lydian in Denver, CO, for total consideration of $54 million; 2) the completed redemption of all outstanding 6.625% Series C Cumulative Redeemable Preferred Shares on September 30, 2024; 3) that year-to-date through September 30, 2024, it has sold approximately 1.59 million shares under its ATM program. Gross proceeds from these ATM sales were approximately $113.73 million, before fees and expenses, which was used to fund the preferred share redemption and pay down line of credit debt

  • Bellevue Capital Partners announced the acquisition of an additional 100,000 shares of GNL noting that this strategic investment underscores its confidence in the company's management and its ongoing commitment to maximizing shareholder value

  • UMH announced the impact of Hurricane Helene on its portfolio of manufactured housing communities noting that they don’t effect the storm to have material impact on operations or financial results

  • EQC announced that it has filed a definitive proxy statement with the U.S. Securities and Exchange Commission related to a Special Meeting of Shareholders for the following purpose: (i) to consider and vote upon the Plan of Sale and Dissolution of the Company, including the wind-down and complete liquidation of the Company, and the dissolution and termination of the Company, including the establishment of a Liquidating Entity (as defined in the Definitive Proxy), and (ii) on an advisory, non-binding basis, to consider and vote upon compensation that may become payable by the Company to its named executive officers in connection with the Plan of Sale where the Special Shareholder Meeting will be held virtually on Tuesday, November 12, 2024 at 1:30 p.m. Central Time and shareholders of record at the close of business on October 1, 2024 will be entitled to vote at the meeting

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Have a great day!

David Auerbach & Mary Jensen