The Daily REITBeat | Wednesday, January 8th, 2025

"Weighted Concerns"

Author

David Auerbach
January 08, 2025

Good Morning!

Futures in the red at the time of this writing as talking heads focus on today’s economic data, President-elect Trump’s upcoming tariff policies and the movement in treasury yields. In addition, the market will be closed tomorrow for President Carter’s state funeral.

From Bloomberg

  • "Bonds and equities extended a selloff on Wednesday as traders assessed the heightened risk of future US tariffs and what that holds for inflation.

  • US Treasuries reversed earlier gains following a CNN report that Trump is considering declaring a national economic emergency to push through his tariff plans. In the UK, 10-year bond yields rose to their highest since 2008 while the 30-year inflation-linked note is now yielding more than 2%, the most since the Truss crisis of 2022.

  • Future contracts for the S&P 500 and Nasdaq 100 respectively dropped 0.4% and 0.6%, pointing to further losses after Tuesday’s pummeling that was led by big-tech stocks. Europe’s Stoxx 600 fell 0.5% after an earlier advance by the same margin. The dollar rose 0.5%.

  • The ongoing turmoil in markets shows how much traders are grappling with persistent US price pressures and uncertainty about the impact of President-elect Donald Trump’s key policies. US equities had a topsy-turvy start to the year while bonds continued their slide as a resilient economy forced traders to push back expectations of interest rate cuts.

  • “Higher Treasury yields are a cause for concern for equity investors, especially when combined with speculation on what Trump may do,” said Lilian Chovin, head of asset allocation at Coutts & Co. in London. “Our view is that markets can digest higher yields, provided they are driven by stronger growth rather than inflation. In the near term it will be a challenge for risk assets.”"

In REIT News

  • CBRE Research initiates RHP with a Buy rating ($130 price target)

  • Lake Street Capital Markets initiates STRW with a Buy rating ($13.50 price target)

  • CPT announced that it disagrees with the allegations made in the amended complaint against RealPage, which added Camden and others as defendants and the Company will vigorously defend itself against these claims and intends to move for dismissal

  • DLR announced that Digital Dutch Finco B.V., an indirect wholly owned finance subsidiary of its operating partnership, Digital Realty Trust, L.P., priced an offering of €850 million aggregate principal amount of 3.875% Guaranteed Notes due 2035 and intends to use the net proceeds to temporarily repay borrowings outstanding under the operating partnership's global revolving credit facilities, acquire additional properties or businesses, fund development opportunities, invest in interest-bearing accounts and short-term, interest-bearing securities which are consistent with the company's intention to qualify as a REIT for U.S. federal income tax purposes, and to provide for working capital and other general corporate purposes

  • WPC announced investment volume for the 2024 full year of approximately $1.6 billion at a weighted-average initial cap rate of approximately 7.5% and an average yield of approximately 9% (which reflects contractual rent escalations over the terms of the leases)

  • TRNO announced its operating, investment and capital markets activity for the fourth quarter of 2024

  • GTY announced an update on the Company’s fourth quarter and full year 2024 investment and capital markets activities commenting that It invested approximately $209 million in convenience and automotive retail assets in 2024 at an 8.3% initial cash yield, including approximately $76 million at an 8.9% initial cash yield in the fourth quarter plus raised approximately $289 million of new equity and debt capital, including approximately $32 million of forward equity through the Company’s at-the-market equity program and $125 million of previously announced unsecured notes in the fourth quarter and sees 2025 Adjusted FFO guidance of $2.40-$2.42/share

  • PECO announced transaction activity for the three months ended December 31, 2024 commenting that fourth quarter 2024 acquisitions included: Shops at Cross Creek, a 24,188 sf shopping center located in a Houston, Texas suburb; Harpers Station, a 229,060 sf shopping center anchored by Fresh Thyme located in a Cincinnati, Ohio suburb; Lakeland Village Center, an 83,542 sf shopping center located in a Houston, Texas suburb; and Northpark Plaza, a 52,192 sf shopping center anchored by King Soopers located in a Denver, Colorado suburb and during the twelve months ended December 31, 2024, the Company acquired 14 shopping centers and four land parcels for approximately $306 million

  • In an 8-K filing, CCI announced that Daniel K. Schlanger will, effective March 31, 2025, cease serving as Executive Vice President and Chief Financial Officer of the Company

  • NSA announced the promotion of John Esbenshade to Chief Accounting Officer from his previous role of Senior Vice President, Controller, effective January 1, 2025

  • Yesterday morning, BRX announced investment activity for the three and twelve months ended December 31, 2024

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Welcome your comments and feedback.

Have a great day!

David Auerbach