The Daily REITBeat | Tuesday, May 13th, 2025

"Catching A Breath"

Author

David Auerbach
May 13, 2025

Good Morning!

Futures in the red at the time of this writing as talking heads focus on yesterday’s massive rally with potential tariff de-escalation progress ahead of today’s pivotal CPI report.

From Bloomberg

  • "The Wall Street stocks rally was set to pause as optimism around tariff cuts between the US and China gave way to lingering concern about inflation and economic growth.

  • Futures pointed to a drop of 0.3% for the S&P 500 and a 0.2% decline for the Nasdaq 100. UnitedHealth Group Inc. sank 10% in premarket trading after suspending its 2025 outlook. Appetite for safer assets picked up again, with Treasury yields falling and gold prices on the rise. The dollar slipped.

  • Investors are taking a breather after the 90-day tariff cool-off announced on Monday sent risk assets on a tear and propelled the Nasdaq back into a bull market. They’ll be looking for clues on the trajectory of Federal Reserve interest rates in the US inflation print due later in the day — the first to potentially show tariff-related costs.

  • “The challenges are not over,” said Frederique Carrier, investment strategy head at RBC Wealth Management. “The de-escalation was a lot stronger than even the best hopes, but you have to remember that the US economy still faces average effective tariffs of more than 13%.”"

In REIT News

  • BofA upgrades CUBE to Buy from Neutral (raise price target by $6 to $50)

  • Compass Point downgrades IRT to Neutral from Buy (maintain $22 price target)

  • Compass Point downgrades NXRT to Neutral from Buy (lower price target by $7.50 to $42.50)

  • Yesterday, Morningstar downgraded SPG to Hold from Buy (maintain $175 price target)

  • CLPR, LAND, SOHO, and SPG announced quarterly earnings

  • FR priced $450 million of 5.25% senior unsecured notes due 2031 on behalf of its operating partnership and intends to use the net proceeds for general corporate purposes, including funding the acquisition and development of additional properties, the repayment or refinancing of outstanding indebtedness, working capital and other general purposes

  • TRNO executed a lease for 70,000 sf in Woodinville, WA with a designer and manufacturer of camera movement systems and stabilizers for unmanned aerial cinematography and remote controlled vehicles noting that the lease will commence June 30, 2025 and expire November 2030

  • HIW published its 2024 Corporate Resiliency Report, which highlights the Company’s ongoing commitment to owning and operating a resilient, high-quality office portfolio that thrives in all economic cycles

  • Yesterday, UMH announced that it has published its 2024 Sustainability Report

  • Yesterday morning, Land & Buildings Investment Management announced that Institutional Shareholder Services Inc. has joined Glass, Lewis & Co., LLC in recommending that stockholders vote “FOR” the election of Land & Buildings’ independent nominees – Jim Hoffmann and Adam Troso – to NHI’s Board of Directors at the 2025 Annual Meeting of Stockholders scheduled for May 21, 2025

  • Yesterday morning, GOOD announced the acquisition of a newly constructed 303,991 sf, Class A, fully temperature controlled facility located in Germantown, WI noting that this state-of-the-art property was purchased for $62,700,000, providing a weighted average GAAP capitalization rate of 8.74% as the facility includes specialized freezer and cooler storage and was built to support high-capacity pet food production and distribution and the facility is 100% leased to G&H Pets, LLC through September 2044

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Welcome your comments and feedback.

Have a great day!

David Auerbach