The Daily REITBeat | Wednesday, April 30th, 2025

"Cautious Optimism or Misleading?"

Author

David Auerbach
April 30, 2025

Good Morning!

Futures mixed at the time of this writing as talking heads focus on several key economic data points being released today amidst a busy corporate earnings season as tariffs overhang the market.

From Bloomberg

  • "S&P 500 futures slipped before key US economic data, while companies reporting earnings were short on reassurances about the future.

  • Contracts on the S&P and Nasdaq 100 declined following a six-day rally, as more companies withdraw their guidance. Super Micro Computer Inc. slid 16% in pre-market trading, ahead of earnings from mega cap tech companies such as Microsoft Corp. and Meta Platforms Inc. Snap Inc. narrowly beat analysts’ estimates for first-quarter revenue but declined to issue a sales forecast.

  • Economic barometers of US economic health are also due with inflation and gross-domestic-product data Wednesday that will give a snapshot of activity just before President Donald Trump unleashed country-specific levies on April 2. US real GDP growth likely cooled to a standstill in the first quarter amid disruptions from policy shifts, according to Bloomberg Economics.

  • Investors have been cautiously optimistic — the Nasdaq 100 is close to erasing all of its losses this month — after tariff U-turns and speculation the Federal Reserve will cut interest rates to prevent a recession.  

  • “Perhaps we are past peak uncertainty,” Kim Crawford, global rates portfolio manager at JPMorgan Asset Management, told Bloomberg TV. “The administration has a more conciliatory tone on tariffs and to an extent as well, Fed independence.”

  • Benchmark 10-year Treasuries steadied after six days of gains, with the yield at 4.16%. Gold dropped."

In REIT News

  • BofA upgrades DRH ($9.50) and SHO ($10) to Buy from Underperform

  • BofA upgrades INN to Neutral from Underperform ($5 price target)

  • BofA downgrades PK to Underperform from Neutral (lower price target by $.50 to $11)

  • AAT, AKR, BXP, CHCT, EQR, ESRT, ESS, EXR, FSP, HIW, ILPT, JBGS, KRG, LINE, REG, STAG, UE, WPC announced quarterly earnings

  • AVB, BNL, CCI, EQIX, FCPT, HST, INN, INVH, IRT, IVT, MAA, OPI, PGRE, PSA, PSTL, RYN, SKT, UDR, VICI, VTR, WSR announce earnings after the close of trading while IRM, KIM, LXP, MPW, NNN announce tomorrow morning before the open

  • LINE announced plans to expand its U.S. cold-storage network via a series of new acquisitions, greenfield developments, and enhanced automation implementation whereby it has entered into a definitive agreement to acquire four existing cold storage warehouses which total approximately 49 million cubic feet with 160 thousand pallet positions in the U.S. from Tyson Foods, Inc. for $247 million

  • FVR announced that during the first quarter of 2025, they acquired 17 new properties for $49.2 million at a weighted average initial cash capitalization rate of 7.9% and a weighted average lease term of 12 years and sold one non-core property for gross sales proceeds of $2.1 million at a 6.9% cash capitalization rate plus announced the appointment of Randall Starr as CFO as Tim Dieffenbacher will be transitioning to the private sector and will be leaving effective May 05, 2025 as well as appointing Sean Fukumura to become their Chief Accounting Officer

  • ELS announced that the Board of Directors has named Marguerite Nader as Vice Chairman of the Board and promoted Patrick Waite as President both effective immediately and noted that Ms. Nader will continue serving as Chief Executive Officer and Mr. Waite will continue in his role as Chief Operating Officer reporting to Ms. Nader

  • Moody’s affirmed the “A3” senior unsecured rating, “(P)A3” backed senior unsecured shelf rating, and “P-2” short-term commercial paper rating of ERP Operating Limited Partnership plus affirmed EQR’s “Baa1” preferred stock rating and “(P)Baa1” preferred shelf rating with a stable outlook

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Welcome your comments and feedback.

Have a great day!

David Auerbach