Good Morning!

Dow futures down over 125 points at the time of this writing as talking heads focus on the port labor strikes along with economic data coming due including today’s JOLTS jobs report.

In REIT News

• Wells Fargo upgrades CTRE ($34), SBRA ($20) and VTR ($71) to Overweight from Equalweight

• Wells Fargo downgrades NHI ($86) and WELL ($135) to Equalweight from Overweight

• Deutsche Bank downgrades HIW to Hold from Buy (raise price target by $4 to $35)

• Yesterday, Morningstar downgraded MAR to Sell from Hold (maintain $223 price target)

• AKR upsized and priced a 5 million share offering at $23.25/share in a forward sale agreement raising gross proceeds of $116.25 million and intends to use the net proceeds for general corporate purposes, including funding potential investment transactions working capital and the repayment of outstanding indebtedness

• SITC announced that it has completed the previously announced spinoff of CURB which begins regular way trading and SITC holders received 2 shares of CURB common stock for every one common share of SITC held at the close of business on the record date of September 23rd, 2024

• EQIX announced the signing of a joint venture (JV) agreement, subject to closing conditions, in the form of a limited liability partnership with GIC and Canada Pension Plan Investment Board (CPP Investments), with the intent to raise over US$15 billion in capital together with its partners as the JV is intended to accelerate the Equinix xScale data center portfolio, which enables hyperscale companies to add core deployments to their existing access point footprints at Equinix International Business Exchange™ (IBX®) data centers and at full buildout, this new JV will nearly triple the investment capital of the Equinix xScale program

• ALX completed a $400 million refinancing of the office condominium portion of 731 Lexington Avenue and noted that the interest-only loan carries a fixed rate of 5.045% and matures in October 2028 as the loan is prepayable, at Alexander’s option, with no penalty, beginning in October 2026

• CTO announced a business update for the third quarter and year-to-date ended September 30, 2024 commenting that 1) the Company’s investment activity, including acquisitions and structured investments, was $191.3 million in the quarter and now totals $273.8 million year-to-date, at a weighted average yield of 9.1% as the company has exceeded its 2024 guidance for investment activity; 2) the Company recently originated a $43.8 million first mortgage loan that has an initial term of two years with a one-year extension option, carries an initial fixed interest rate of 11%, and included an origination fee of 1.25%; and 3) During the quarter, the Company issued approximately 6.9 million common shares at a weighted average price of $18.63 per share under the Company’s ATM common equity program, generating net proceeds of $125.7 million

• PDM announced that Robert E. Bowers, who has served as the Company’s Chief Financial Officer since 2007, will transition to an administrative role effective November 8th and Sherry L. Rexroad will succeed him

• WELL announced a business update commenting that 1) In addition to the 47 conversions of triple-net leased properties to Seniors Housing Operating (RIDEA) structures announced in conjunction with 2Q2024 earnings, Welltower has also completed the conversion of 5 communities previously triple-net leased to Sagora to a RIDEA structure; 2) it will sell its 100% interest in 5 properties currently operated under a triple-net lease with Brookdale for $175 million; and 3) In a separate transaction, a joint venture with an international partner agreed to sell 11 Brookdale-operated communities. Welltower held a 25% minority interest in the portfolio after taking out substantially all of its equity in a transaction completed in 2017 and expects to receive $26 million of net proceeds from the sale

• ELS reported its preliminary assessment of the impact of Hurricane Helene on its Florida, North Carolina and South Carolina properties commenting that it “does not believe that Hurricane Helene will significantly impact our results of operations or our financial condition on a consolidated basis”

• PEB announced that several of its resorts were impacted by Hurricane Helene and that repair and remediation costs net of insurance payments are expected not to be material

• NXRT announced that the Company's properties did not sustain any material damages as a result of Hurricane Helen

• O published its annual Sustainability Report, which covers its 2023 environmental, social and governance initiatives

• Yesterday morning, OUT announced that Scott Felenstein has been appointed as the Senior Vice President of Brand Partnerships and will take over leadership of the company's brand partnership strategy where he will spearhead the company's efforts to expand brand collaborations, drive growth across digital out of home (DOOH) platforms, and strengthen relationships with top-tier clients and agencies

• Yesterday morning, TRNO announced that it has completed the development and stabilization of Countyline Corporate Park Phase IV Building 39 in Hialeah, FL effective September 30, 2024 noting that the 178K sf Building 39 is 100% leased to one tenant and is expected to achieve LEED certification where the total expected investment is $43.8 million and the estimated stabilized cap rate is 5.8%

• Yesterday morning, HIW announced after having conducted a thorough assessment of its Florida, Georgia, North Carolina and Tennessee properties that its buildings have not sustained any notable damage as a result of Hurricane Helene

• Yesterday morning, IRT announced that its apartment communities did not incur any significant damage as a result of Hurricane Helene

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Have a great day!

David Auerbach & Mary Jensen