The Daily REITBeat | Tuesday, May 6th, 2025

"Damaging Impact?"

Author

David Auerbach
May 06, 2025

Good Morning!

Futures in the red at the time of this writing as talking heads focus on the tariff overhang on the markets and the potential impact on the world economy as corporate earnings, treasuries and commodities are closely scrutinized with tomorrow’s Fed decision looming.

From Bloomberg

  • "Global stocks fell as a slew of corporate statements reinforced concerns about the trade war’s damaging impact on companies and the world economy.

  • Contracts on the S&P 500 slid 0.7%, while those on the Nasdaq 100 dropped 0.9%. Palantir Technologies Inc. fell about 8% in premarket trading after the software firm’s results failed to meet investors’ expectations. Ford Motor Co. slipped 2.6% after the carmaker pulled its financial guidance and flagged a tariff impact of about $2.5 billion on 2025 earnings. Tesla Inc. and Meta Platforms Inc. led declines among the Magnificent Seven tech megaps.

  • In Europe, companies such as Royal Philips NV and Vestas Wind Systems A/S warned of uncertainty fueled by President Donald Trump’s trade tariffs. The Stoxx 600 benchmark snapped a 10-day run of gains to drop 0.6%, its losses accelerating after incoming German chancellor Friedrich Merz failed to win parliamentary backing to confirm him in his role. The setback came as a shock, but Merz is expected to be eventually elected. 

  • The moves suggest that a recent burst of optimism fueled by some US trade concessions may already be fading. On Monday, the S&P 500 halted a nine-day rally that was its longest in about 20 years. While Ford’s warning served as a reminder that damage from the tariff war will become evident over the coming months, a run of firm economic data in recent days has caused traders to dial back bets on Federal Reserve interest-rate cuts."

In REIT News

  • BofA downgrades FVR to Neutral from Buy (lower price target by $3 to $15)

  • BofA downgrades LINE to Neutral from Buy (lower price target by $21 to $49)

  • CLDT, DHC, KRC, LTC, NHI, NSA, O, SBRA, SHO, SUI, VNO announced quarterly earnings while AHT, DEI, SVC announce after the close of trading and MDV announces tomorrow morning before the open

  • VNO completed a master lease with New York University to lease 1,076,000 sf at 770 Broadway, on an “as is”, triple net basis for a 70-year lease term where under the terms of the master lease, a rental agreement under Section 467 of the Internal Revenue Code, NYU made a prepaid lease payment to Vornado of $935 million and will also make annual lease payments to Vornado of approximately $9.3 million during the lease term.

  • AHH reached an agreement with its joint venture partner, Beatty Development Group, to acquire full ownership and control of Allied | Harbor Point, a 312-unit multifamily asset located in Harbor Point Baltimore noting that it will acquire the partner’s minority interest in the property, transitioning from joint venture ownership to sole ownership and the acquisition is expected to close in June, subject to customary closing conditions

Download today’s Daily REIT Beat here!

The Daily REITBeat 5-6-25.pdf694.29 KB • PDF File

Welcome your comments and feedback.

Have a great day!

David Auerbach