The Daily REITBeat | Tuesday, December 31st, 2024

"Thrive in 2025?"

Author

David Auerbach
December 31, 2024

Good Morning!

Futures in the green at the time of this writing as talking heads focus on end-of-year portfolio repositioning following a volatile year that currently shows all the major indices finishing the year in the green.

From Bloomberg

  • "US equity futures gained, setting stocks on course to snap three days of losses and build on this year’s powerful Wall Street rally.

  • Contracts for the S&P 500 and the tech-heavy Nasdaq 100 were about 0.4% higher, signaling a rebound from Monday’s declines of more than 1%. European trading was muted, with several markets shut on New Year’s Eve and shortened sessions in London and Paris. 

  • As equities look to end 2024 on a positive note, investors have much to ponder. Some are concerned about the stamina of this year’s 24% S&P 500 rally, driven by the so-called Magnificent Seven cohort of tech giants. And there’s a range of uncertainties to confront in 2025, from President-elect Donald Trump’s protectionist policies to the outlook for central bank policy and the health of the European and Chinese economies.

  • The Bloomberg Dollar Spot Index was steady, on course for its best year since 2015 in a rally fueled by Trump’s reelection in November and the Federal Reserve’s less dovish policy pivot. An index of Treasuries looks set to eke out a small gain for the year, with yields edging lower on Tuesday.

  • “Investors are in wait-and-see mode,” Noel Dixon, senior macro strategist at State Street Corp., told Bloomberg Television. “We don’t know what the retaliatory effects are going to be and how the Fed is ultimately going to react to those tariffs.”"

In REIT News

  • EGP announced a business activity update commenting that:

    • In November, the Company acquired DFW Global Logistics Centre 5-8, four multi-tenant business distribution buildings totaling 492,000 sf, for approximately $76,000,000 noting that these buildings, which are 100% leased to 13 tenants, are located adjacent to the Company's DFW Global Logistics Centre 1-4 buildings near the Dallas-Fort Worth Airport

    • In December, the Company acquired Akimel Gateway, which contains four industrial buildings totaling 519,000 sf in Southeast Phoenix, for approximately $83,000,000 noting that this property was developed in 2022 and is 100% leased to four tenants

    • During the fourth quarter of 2024 to date, the Company sold 914,780 shares of common stock directly through its sales agents under its continuous common equity offering program at a weighted average price of $174.23 per share, providing aggregate net proceeds to the Company of approximately $158,000,000

    • During the fourth quarter of 2024 to date, the Company entered into forward equity sale agreements with respect to 690,953 shares of common stock with an initial weighted average forward price of $175.05 per share and approximate gross sales proceeds of $121,000,000, based on the initial forward price where the Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements

    • During the fourth quarter of 2024 to date, the Company settled outstanding forward equity sale agreements that were previously entered into under its continuous common equity offering program by issuing 1,704,863 shares of common stock in exchange for net proceeds of approximately $305,517,000

  • In an 8-K filing, AIV announced that it entered into an agreement to sell the properties located at 1001 Brickell Bay Drive and 1111 Brickell Bay Drive in Miami, FL to Brickell Bay Property Owner LLC for a gross price of $520 million where net proceeds from the transaction, accounting for the associated property-level debt and deferred tax liability, are estimated to range from $300 to $320 million depending on the buyer’s election regarding seller financing and Aimco intends to return the majority of the net proceeds from the transaction upon receipt to shareholders

  • Yesterday morning, TRNO announced that it acquired Terreno Doral Air Logistics, an industrial property located in Doral, FL on December 27th for a purchase price of approximately $195.6 million noting that the 495K sf property is 76% leased to six tenants and the estimated stabilized cap rate is 4.6%

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Have a great day!

David Auerbach & Mary Jensen