The Daily REITBeat | Tuesday, December 17th, 2024

"A Global Pullback?"

Good Morning!

Futures in the red at the time of this writing as talking heads set the stage for tomorrow’s Federal Reserve interest rate decision and its monetary policy outlook.

From Bloomberg

  • "Stocks pulled back across the globe on Tuesday as traders awaited the Federal Reserve’s final interest-rate decision for 2024 and its monetary policy forecasts.

  • S&P 500 futures retreated 0.3%, while contracts for the Nasdaq 100 were little changed after the rally in technology stocks pushed the gauge to a fresh all-time high on Monday. Europe’s Stoxx 600 fell 0.4% as weaker crude prices weighed on oil-related stocks. A key Asian gauge dropped 0.5% after erasing gains as concerns over China’s economy persist.

  • As equity markets head into the final weeks of 2024, US stocks are set to significantly outperform their peers for the year as optimism about artificial intelligence and falling rates fuel investor confidence. Traders are now focusing on Wednesday’s Fed announcement, with Chair Jerome Powell widely expected to deliver a quarter-point of easing.

  • What happens in the following months remains less clear. While the US economy is resilient, the prospect of inflationary import tariffs threatened by the incoming administration of Donald Trump may give Fed officials pause about the pace of further moves."

In REIT News

  • Wedbush initiates CSR with a Neutral rating ($72 price target)

  • Deutsche Bank initiates MAC ($22), SKT ($37) and SPG ($195) with Hold ratings

  • Barclays initiates CPT ($138), EPRT ($35.94), EQR ($83), INVH ($38), NNN ($48) and UDR ($50) with Overweight ratings

  • Barclays initiates AMH ($39), AVB ($243), ESS ($316), FCPT ($31), GLPI ($54.53), IRT ($23), MAA ($166) and O ($59) with Equalweight ratings

  • Barclays initiates ADC ($76) and WPC ($59) with Underweight ratings

  • JMP upgrades BNL ($21) and GNL ($9) to Outperform from Market Perform

  • JMP downgrades ADC to Market Perform from Outperform

  • KeyBanc upgrades CUZ to Overweight from Underweight (raise price target by $15 to $34)

  • KeyBanc upgrades GTY ($35) and MAA ($180) to Overweight from Sector Weight

  • KeyBanc upgrades FR to Sector Weight from Underweight

  • KeyBanc downgrades EGP and VICI to Sector Weight from Overweight

  • JPM upgrades AVB to Overweight from Neutral (raise price target by $15 to $262)

  • JPM upgrades VRE to Neutral from Underweight (raise price target by $3 to $17)

  • JPM downgrades ELME to Neutral from Overweight (lower price target by $1 to $18)

  • JPM downgrades CPT ($128) and ESS ($303) to Underweight from Neutral

  • Scotiabank upgrades MAC to Sector Perform from Sector Underperform (raise price target by $5 to $22)

  • GLPI completed the previously announced $395 million acquisition of the land and real estate assets of Bally’s Kansas City Casino and Bally’s Shreveport Casino & Hotel from Bally’s Corporation as the two properties have been put into a new Bally’s Master Lease that is cross-defaulted with the Company’s existing Bally’s Master Lease, with initial annual cash rent of $32.2 million representing an 8.2% initial cash capitalization rate

  • CTO announced the addition of its second grocery anchored property in the Tampa, FL market with the acquisition of the 74,000 sf Granada Plaza shopping center for $16.8 million prior to closing costs and adjustments noting that it is anchored by a high-performing Publix located in the city of Dunedin and the property is situated on seven acres which is 95% occupied

  • AHT announced the launch of a transformative strategic initiative designed to drive outsized EBITDA growth and substantially improve shareholder value as the initiative, labeled "GRO AHT," centers around three core pillars: G&A Reduction, Revenue Maximization, and Operational Efficiency

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Have a great day!

David Auerbach & Mary Jensen