The Daily REITBeat | Tuesday, April 1st, 2025

"More Severe?"

Author

David Auerbach
April 01, 2025

Good Morning!

Futures in the red at the time of this writing as talking heads focus on tomorrow’s “Liberation Day” and the question of whether tariffs will be manageable or more severe. 10-year hovering around 4.156% as the economic data starts ramping up through the rest of the week.

From Bloomberg

  • "US equity futures fell, hinting at another volatile session on Wall Street, as the arrival of tariffs loomed over markets. Gold extended its winning streak.

  • S&P 500 contracts slipped 0.5%, ceding earlier gains. Johnson & Johnson slid 3.5% in premarket trading after a judge rejected its third attempt to use bankruptcy of one of its units to end baby powder cancer claims. Delta Airlines Inc. and Southwest Airlines Co. fell after Jefferies analysts cut their ratings on concern about consumer spending. 

  • Europe’s Stoxx 600 Index gained 0.9% after four days of losses. The dollar was steady and 10-year Treasury yields slipped four basis points. Gold hit a new record high near $3,150 an ounce.  

  • President Donald Trump will announce his reciprocal tariff plan at 3 p.m. on Wednesday at an event in the White House Rose Garden, but the extent of his levies remain unclear. There’s also confusion around whether the US president will take a lenient or harder tack, making investors wary of risky stock bets. 

  • “Investors are grappling with what could be announced this week,” said Laura Cooper, global investment strategist at Nuveen. “The range of outcomes is so wide that traders are struggling with how to price in that potential outcome.”"

In REIT News

  • ADC announced the establishment of its inaugural commercial paper program which allows the Company, through its subsidiary, to issue up to $625 million of short-term, unsecured commercial paper notes where proceeds will be used for general corporate purposes

  • DHC closed a $140 million mortgage financing secured by 14 senior living communities located in nine states and consisting of 1,375 units that are managed by Five Star Senior Living, an operating division of AlerisLife Inc. as the non-recourse, three-year loan has an initial maturity date of March 31, 2028, and two one-year extension options, subject to certain conditions plus the Company intends to use the loan proceeds to redeem a portion of its outstanding 9.750% senior notes due 2025

  • INN closed on a new $275 million senior unsecured term loan as the Company expects to utilize future proceeds from the Term Loan to repay the majority of the Company's outstanding $287.5 million 1.50% Convertible Senior Notes maturing in February 2026 and the Term Loan includes a delayed draw feature available to the Company through March 1, 2026, that will enable the Company to preserve the attractive 1.50% interest rate on the Convertible Senior Notes through the scheduled maturity date

  • FCPT announced the acquisition of nine Burger King properties located in strong retail corridors in Tennessee for $19.9 million from Ampler Restaurant Group via sale-leaseback noting that the properties are franchisee-operated under long-term, triple net leases with 20 years of term and priced at a 6.8% cap rate on rent as of the closing date and exclusive of transaction costs

  • WPC announced during 1Q’25 it completed investments totaling approximately $275 million, primarily comprising sale-leasebacks of industrial properties and currently has capital investments and commitments totaling approximately $120 million scheduled to be completed during 2025 while it disposed of $130 million of assets in 1Q’25 plus affirms its 2025 AFO guidance of $4.82-$4.92/share

  • GNL declared a dividend of $0.19/share of common stock (down 31% from $.275/share) payable on April 16, 2025 to common stockholders of record at the close of business on April 11, 2025 as the company said it would do in its 4Q’24 earnings release which will generate $78 million in incremental annual cash flow

  • Moody’s upgraded WELL and its subsidiary’s long-term issuer rating to “A3” from “Baa1” and revised its outlook to stable from positive

  • Yesterday, GOOD announced the $44 million acquisition of a newly constructed, 140,304 sf, Class A USDA food processing facility located in Dallas, TX that is 100% leased to Three Sons Holding Inc.

  • Yesterday morning, HPP announced the completion of a commercial mortgage-backed securities financing for a portfolio of six office properties with total gross proceeds of $475 million noting that the portfolio, which comprises assets located throughout the company’s west coast markets, includes 11601 Wilshire, Element LA, 450 Alaskan, 5th & Bell, 275 Brannan and 1740 Technology and the company used net proceeds to fully repay a $168 million loan secured by Element LA with the balance used to repay amounts outstanding on the company’s unsecured revolving credit facility and for other general corporate purpose

Download today’s Daily REIT Beat here!

The Daily REITBeat 4-1-25.pdf656.05 KB • PDF File

Welcome your comments and feedback.

Have a great day!

David Auerbach