The Daily REITBeat | Tuesday, December 10th, 2024

"Market Concerns"

Author

David Auerbach
December 10, 2024

Good Morning!

Futures mixed and 10-year treasury trading around 4.23% at the time of this writing as talking heads await tomorrow’s CPI report with Oracle and Nvidia receiving a lot of attention.

From Bloomberg

  • "US stock futures pointed to a steady open for Wall Street, as traders waited to see if a key inflation report will reinforce expectations of an interest-rate cut this month from the Federal Reserve.

  • Contracts on the S&P 500 and Nasdaq 100 inched up about 0.1%. Software maker Oracle Corp. was a key premarket mover, sliding as much as 8.8% after quarterly results underwhelmed. Nvidia Corp. looked set to extend losses following news that China is probing the AI chipmaker over alleged anti-monopoly violations. US-listed Chinese shares also slipped, ceding gains notched the previous day after Beijing pledged to loosen monetary policy. 

  • Uncertainty on whether China will follow up on its stimulus pledges weighed on Europe’s Stoxx 600 index, which is set to snap an eight-day winning streak. Other market concerns include the renewed upheaval in the Middle East and the possibility that sticky inflation could persuade the Fed to pause its rate-cutting cycle this month.  

  • Wednesday’s consumer price index print in the US will be the final major price reading before the Fed’s policy meeting next week. Any indication that progress has stalled on the inflation front could well undercut the chances of a third straight reduction in rates. Bloomberg’s Dollar Spot Index and Treasury yields edged higher. "

In REIT News

  • JPM upgrades SLG to Neutral from Underweight (raise price target by $29 to $80)

  • Wells Fargo downgrades CCI to Underweight from Equalweight (lower price target by $5 to $100)

  • Yesterday, Morningstar upgraded WELL to Hold from Sell (maintain $123 price target)

  • VICI priced $750 million of 5.125% senior unsecured notes due 2031 on behalf of its limited partnership and intends to use the net proceeds to repay its outstanding $750.0 million in aggregate principal amount of 2025 Notes with any remaining net proceeds will be used for general corporate purposes, which may include the acquisition and improvement of properties, capital expenditures, working capital and the repayment or refinancing of indebtedness

  • DOC announced that its operating partnership has amended and extended its $3 billion revolving credit facility as well as made conforming amendments to its outstanding term loans in connection with the Credit Facility which will initially mature in January 2029 and can be extended pursuant to two six-month extension options, subject to certain conditions and based on its current credit ratings, the Credit Facility bears interest at a rate per annum equal to SOFR plus 77.5 basis points and carries a facility fee on the entire revolving commitment of 15 basis points per annum

  • Yesterday morning, LTC announced that Wendy Simpson has been appointed Executive Chairman of Board of Directors, Pam Kessler and Clint Malin have been promoted to Co-Chief Executive Officers, and Cece Chikhale has been promoted to Chief Financial Officer as the appointments are part of the Company’s succession plan and are effective December 31, 2024

  • Yesterday morning, ARE announced that its Board of Directors authorized a $500 million common stock repurchase program until December 31, 2025

Download today’s Daily REIT Beat here!

The Daily REITBeat 12-10-24.pdf594.11 KB • PDF File

Welcome your comments and feedback.

Have a great day!

David Auerbach & Mary Jensen