The Daily REITBeat | Tuesday, January 7th, 2025

The "U" Word

Author

David Auerbach
January 07, 2025

Good Morning!

Futures mixed at the time of this writing as talking heads focus on uncertainty in the market regarding President Trump’s policy proposals along with Nvidia new chip announcements and political headlines with Justin Trudeau’s resignation yesterday.

From Bloomberg

  • "The dollar extended losses on Tuesday as uncertainty over the scope and impact of President-elect Donald Trump’s policy kept traders guessing.

  • Bloomberg’s gauge for the greenback retreated 0.2% for its third day in the red. The currency whipsawed on Monday, ending the day 0.6% lower, after Trump denied headlines that his tariff plans would be scaled back. US Treasuries held steady.

  • In equity markets, US futures were little changed. Nvidia Corp. rose 1.9% in premarket trading after Chief Executive Officer Jensen Huang announced a raft of new chips, software and services. Uber Technologies Inc. also gained on news about a collaboration with Nvidia for autonomous driving technology.

  • In the broader market, traders are still grappling with the prospect of rising trade tensions once Trump takes office. Prior to this week’s pullback, the dollar had surged more than 7% over a three-month period as traders’ anticipated that future US policies would dent global trade and boost the local economy.

  • The greenback’s retreat over the past couple of days doesn’t constitute a lasting trend, said Jacques Henry, head of cross-asset research at Silex in Geneva. “The dollar is in a rising cycle due to the resilience of its economy that’s likely to last,” he said.

  • The Canadian dollar continued its advance following Prime Minister Justin Trudeau’s resignation as head of the Liberal Party. The yen edged off a six-month low after Japan’s finance minister warned about “excessive” FX movements.

  • Monday’s political headlines triggered the most hectic trading day in nearly two months in the currency options markets. Volumes surged to $108 billion by the close of trade, surpassing the activity seen on the Federal Reserve and Bank of Japan monetary policy announcement days last month, according to data from Depository Trust and Clearing Corp."

In REIT News

  • UBS upgrades DLR to Buy from Neutral (raise price target by $58 to $205)

  • Mizuho upgrades VNO to Outperform from Neutral (raise price target by $10 to $48)

  • Mizuho upgrades CUZ to Neutral from Underperform (raise price target by $5 to $29)

  • JMP upgrades LTC ($40) and SBRA ($20) to Outperform from Market Perform

  • Mizuho downgrades KRC to Neutral from Outperform (lower price target by $2 to $43)

  • BXP announced that on December 27, 2024, it completed the acquisition of 725 12th Street, a 300,000 sf, 12-story property in the East End of Washington, DC, for a gross purchase price of $34 million as it plans to demolish and redevelop the property into an approximately 320,000 sf premier workplace as the Company has executed an approximately 150,000 sf lease with global law firm McDermott Will & Emery for the top five floors of the future newly constructed trophy property and is currently negotiating with a client for the majority of the remaining space

  • AHH closed the sales of Nexton Square in Summerville, SC and Market at The Mill Creek in Mount Pleasant, SC on December 18, 2024 for $82 million noting that they exited the properties at a blended cap rate in the low 6% range

  • NNN announced that Kevin B. Habicht, Executive Vice President, Chief Financial Officer, Assistant Secretary, Treasurer and the Company's principal financial officer, will retire and step down as a member of the Board of Directors effective March 31, 2025 as Vincent H. Chao will join the Company as Executive Vice President on January 9, 2025, and assume the positions of Chief Financial Officer, Assistant Secretary and Treasurer and serve as the Company's principal financial officer effective April 1, 2025

  • OHI announced key leadership changes where 1) Matthew Gourmand, previously Senior Vice President, Corporate Strategy & Investor Relations, has been appointed President; 2) Vikas Gupta, previously Senior Vice President, Acquisitions & Development, has been appointed Chief Investment Officer; 3) Separately, after 23 years as Chief Operating Officer, Dan Booth has stepped down from his position and is expected to remain in a consulting role for a period of 12 months

  • AMT announced that Eugene (“Bud”) Noel, currently Executive Vice President and President of the U. S. Tower Division, will become Executive Vice President and Chief Operating Officer effective January 13, 2025 plus Richard (“Rich”) Rossi, currently Senior Vice President and General Counsel of U.S. Tower will succeed Mr. Noel as Executive Vice President and President, U.S. Tower, also effective January 13, 2025

  • ADC announced 1) Total real estate investment volume for 2024, inclusive of acquisition, development, and Developer Funding Platform projects completed or currently under construction, amounted to a total of approximately $951 million; 2) During the twelve months ended December 31, 2024, the Company acquired 242 retail net lease properties for total acquisition volume of approximately $867 million at a weighted-average capitalization rate of 7.5% and had a weighted-average remaining lease term of 10.4 years; 3) Acquisition volume for the fourth quarter totaled approximately $341 million at a weighted-average capitalization rate of 7.3% with a weighted-average remaining lease term of 12.3 years, and approximately 73.3% of annualized base rents were generated from investment grade retail tenants; 4) The Company's outlook for investment volume in 2025, which includes capital deployment through acquisition, development and DFP platforms, is between $1.1 billion and $1.3 billion of retail net lease properties which represents a 26% year-over-year increase in investment volume at the midpoint; 5) During the fourth quarter of 2024, the Company entered into forward sale agreements in connection with its at-the-market equity program to sell an aggregate of 0.7 million shares of common stock for anticipated net proceeds of approximately $55 million plus settled 3.7 million shares under existing forward sale agreements and received net proceeds of approximately $228 million

  • Yesterday morning, UDR announced its preliminary financial results, operating results, and investment activity for the fourth quarter 2024 commenting that 1) Funds From Operations as Adjusted per diluted share are expected to be $0.63 for the fourth quarter 2024 and $2.48 for the full-year 2024, each of which are in-line with the midpoints of the Company’s previously provided guidance as described in its third quarter 2024 earnings release published on October 30, 2024; 2) Sees quarterly preliminary same store NOI growth up 2.1% year over year and full year NOI up 1.5% year over year; 3) Entered into agreements to sell Leonard Pointe, a 188-home apartment community in New York, for gross proceeds of $127.5 million and One William, a 185-home apartment community in New Jersey, for gross proceeds of $84.0 million

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Have a great day!

David Auerbach & Mary Jensen