The Daily REITBeat | Tuesday, November 12th, 2024

"Stalling Out?"

Author

David Auerbach
November 12, 2024

Good Morning!

Futures relatively flat to slightly down across the board at the time of this writing as talking heads focus on markets continuing their upward climb as bitcoin approaches $90K and 10-year treasury hovers around 4.36%.

From Bloomberg

  • "A five-day rally in the S&P 500 looked set to stall amid unease over expensive equity valuations and the composition of President-elect Donald Trump’s incoming cabinet.

  • Contracts on the S&P 500 and Nasdaq 100 indexes slipped about 0.2%, while Europe’s Stoxx 600 gauge lost 1%. Tesla Inc., the EV maker seen as a prime beneficiary of a Trump presidency, dropped in premarket trading after a post-election surge that lifted its valuation past $1 trillion. Other so-called Trump trades remained in play, however, with Treasuries falling, the dollar hitting a one-year high and Bitcoin hovering just below $90,000.

  • The election outcome has taken investors’ US equity exposure to the highest in three years, suggesting the rally could run out of steam, according to Citigroup Inc. analysts. Traders are also pondering the potential for Trump’s economic policies, including trade tariffs and immigration crackdowns, to spur inflation and affect the path for Federal Reserve monetary policy.

  • “If we have those tariffs kicking in, if we have those so-called deportations, those would have an outright inflationary impact, and so would result in higher bond yields,” said Kevin Thozet, a member of the investment committee at Carmignac. “Higher bond yields across the curve may start to bite at some point,” especially at a time of lofty stock-market valuations, he said.

  • Ten-year Treasury yields rose as much as six basis points as the market reopened after Monday’s holiday."

In REIT News

  • BofA downgrades SUI to Underperform from Neutral (lower price target by $33 to $114)

  • Jefferies downgrades HPP to Hold from Buy (lower price target by $.50 to $5)

  • Yesterday, Morningstar downgraded ELS to Hold from Buy (maintain $76 price target)

  • Yesterday, Morningstar downgraded EQIX to Sell from Hold (maintain $810 price target)

  • SHO and SILA announced quarterly earnings

  • HR announced that Todd Meredith will step down as President and Chief Executive Officer and as a member of the Board of Directors effective immediately while the board has appointed Constance “Connie” Moore, current Healthcare Realty board member and former President and CEO of BRE Properties, Inc., as interim President and CEO effective immediately

  • XHR announced that its operating partnership intends to offer, subject to market conditions and other factors, $365 million aggregate principal amount of senior notes due 2030 and intends to use the net proceeds of the offering, together with borrowings under the Company's amended and restated credit agreement, to redeem in full its outstanding 6.375% senior notes due 2025 and to pay certain fees and expenses in connection with, or otherwise related to, the offering of the Notes and the use of proceeds therefrom and from the Credit Agreement

  • AHT announced that it has successfully entered into a 90-day forbearance period for its Morgan Stanley Pool loan secured by 17 hotels as the loan had a final maturity date of November 9, 2024 and the Company is in active discussions with the lender regarding a multi-year extension of the loan and expects to have that finalized during the 90-day period

  • Yesterday morning, Fitch Ratings placed the ratings of ROIC and its limited partnership, including the “BBB” Long-Term Issuer Default Ratings and underlying senior unsecured debt, on Rating Watch Evolving

Download today’s Daily REIT Beat here!

The Daily REITBeat 11-12-24.pdf656.05 KB • PDF File

Welcome your comments and feedback.

Have a great day!

David Auerbach & Mary Jensen