The Daily REITBeat | Tuesday, December 24th, 2024

Happy Holidays!!

Author

David Auerbach
December 24, 2024

Good Morning!

A safe and happy holiday to everyone who is reading. Thank you for all of your support as we continue to grow our REIT news platform.

As far as publishing for the rest of this week, we will play it by ear depending on what kind of news flow (if any) we see. Monday’s newsletter may be a summation of the next couple of days. We shall see.

Futures mixed at the time of this writing as talking heads focus on yesterday’s tech rally, Fed’s bank stress tests, American Airlines ground stop that was in effect this morning due to a technical issue along with retail sales during the holiday season.

From Bloomberg

  • "US equity futures edged higher in muted pre-holiday trading, signaling a subdued open on Wall Street after Monday’s tech-led rally.

  • Contracts on the S&P 500 gained about 0.1% and those on the Nasdaq 100 were 0.2% higher. American Airlines Group Inc. shares fell as much as 5.5% in premarket trading after the company grounded all flights nationwide, according to an FAA advisory.

  • Europe’s Stoxx 600 added 0.3%, with major markets including Germany shut and others, such as London and Paris, scheduled to close early. France’s CAC 40 outperformed after Prime Minister Francois Bayrou said he aimed to reduce the country’s budget deficit to near 5%.

  • The S&P 500 is on its way to record a stellar annual return and back-to-back years of more than 20% gains. The index has risen about 25% since the end of 2023. The top seven biggest technology stocks accounted for more than half of the advance, though market breadth improved in the latter half of the year.

  • European stocks, by contrast, have lagged amid lackluster economic growth and political upheaval in France and Germany. The Stoxx 600 has dropped more than 4% since a September high, heading for its biggest quarterly loss in two years.

  • “The year is ending with a renewed strength in the US market, thanks to an increase in breadth,” said Alberto Tocchio, a portfolio manager at Kairos Partners. “The reality is that US growth has surprised everybody as it’s been very resilient, while unfortunately Europe is closing very downbeat as it still struggles to get some growth.”"

In REIT News

  • FCPT announced 1) the acquisition via sale-leaseback of six Christian Brothers Automotive properties located in strong retail corridors across Georgia (2), Indiana (2), Florida (1), and Illinois (1) for $24.8 million and noted that the properties are each under a long-term lease guaranteed by the corporate entity and priced at a cap rate in range with previous FCPT transactions and 2) the acquisition of a National Veterinary Associates property located in Connecticut for $3.5 million noting that the property is corporate-operated under a new long-term, triple net lease with annual rent bumps and priced at a cap rate in range with previous FCPT transactions

  • CBL closed on the acquisition of its partner’s 50% joint venture interests in CoolSprings Galleria in Nashville, TN, Oak Park Mall in Kansas City, KC, and West County Center in St. Louis, MO as the interests were acquired for a total cash consideration of $22.5 million plus the Company assumed an aggregate $266.7 million in three non-recourse loans, secured individually by each of the assets

  • EQR announced that it was named to both the Dow Jones Sustainability World and North America Indices noting that it is the first residential REIT to receive this distinction and one of only four U.S. REITs to be included in both indices

  • Yesterday morning, TRNO announced that it has pre-leased 50% of Countyline Corporate Park Phase IV Building 32 in Hialeah, FL noting that the ten-year lease for 82,000 sf, with an aircraft engine maintenance, repair and overhaul provider, will commence upon completion of building construction and tenant improvements expected to be in June 2025 where the total expected investment of Building 32 is $41.9 million and the estimated stabilized cap rate is 6.0%

     

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Welcome your comments and feedback.

Have a great day!

David Auerbach