The Daily REITBeat | Thursday, February 27th, 2025

"Are We Reassured??"

Author

David Auerbach
February 27, 2025

Good Morning!

Futures at the time of this writing as talking heads

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From Bloomberg

  • "US equity futures rose as traders awaited a batch of economic data for clues on the interest-rate outlook and after Nvidia Corp.’s earnings reassured investors on the outlook for AI chip demand.

  • Contracts on the S&P 500 and the Nasdaq 100 were up at least 0.7%. Nvidia advanced 2.2% in premarket trading after reporting a fourth-quarter earnings beat and giving a forecast that mostly met market expectations. Other members of the Magnificent Seven cohort were also higher, with Meta Platforms Inc., Tesla Inc. and Amazon.com Inc. rising more than 1%.

  • Initial jobless claims and revised fourth-quarter gross domestic product numbers feature in a flurry of readings due later that investors will parse for any further evidence of slowing growth. Money markets have boosted Federal Reserve easing bets to fully price two quarter-point cuts this year compared to just one reduction two weeks ago."

In REIT News

  • Raymond James upgrades PEB to Outperform from Market Perform ($14 price target)

  • Barclays upgrades KRC to Overweight from Equalweight (raise price target by $2 to $44)

  • BHR, EPR, EQC, HHH, INVH, MAC, MPW, NSA, PEB, PLYM, PSTL, SITC, STRW, SUI, SVC, UMH announced quarterly earnings

  • AHR, ALEX, CUBE, DRH, GMRE, GNL, PGRE announce earnings after the close of trading

  • PDM announced the appointments of Deneen Donnley, Stephen Lewis and Jeffrey Donnelly to its Board of Directors and with the appoints, the Board now consists of ten members

  • AVB announced that it is under contract with BSR Real Estate Investment Trust to acquire two apartment communities in the Austin metropolitan area and six apartment communities in the Dallas-Fort Worth metropolitan area noting that the acquisition of the Austin Assets is expected to close on or around March 31, 2025, for an aggregate purchase price of $187.0 million in cash funded with disposition proceeds while the acquisition of the Dallas Portfolio is expected to close in the second quarter of 2025 for a stated aggregate purchase price of $431.5 million, which will take the form of a cash payment of approximately $193.0 million, a portion of which will be used by BSR Trust for the repayment of existing indebtedness relating to the Dallas Portfolio with the remainder used for the repayment of other indebtedness, payment of transaction expenses and general corporate purposes, and the issuance to participating holders of BSR Class B Units of approximately $238.5 million of DownREIT Units, valued at $225 per unit, in a newly formed subsidiary partnership of the Company and reaffirms 2025 guidance ranges

  • EQC closed on the sale of its last remaining property, 1225 Seventeenth Street, a 709,402 square foot office property in Denver, Colorado, for a gross sale price of $132.5 million, on February 25, 2025 noting that the net purchase price was approximately $124.4 million after credits primarily for contractual lease costs and with this sale of its last remaining property, the Company is also updating the estimated aggregate shareholder liquidating distribution range from an estimated aggregate shareholder liquidating distribution range of $20.00 to $21.00 per common share previously announced on November 15, 2024, to an estimated aggregate shareholder liquidating distribution range of $20.55 to $20.70 per common share, inclusive of the initial liquidating distribution of $19.00 per common share paid by the Company on December 6, 2024

  • Yesterday, S&P Global placed SUI’s ratings, including its “BBB” issuer credit rating, on CreditWatch with positive implications which reflects its view that leverage will be materially reduced, with a significant portion of the proceeds expected to be used to repay debt, following the close of the transaction, which is expected to be in the second quarter of 2025

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Have a great day!

David Auerbach