The Daily REITBeat | Wednesday, June 18th, 2025

"Holding Steady?"

Author

David Auerbach
June 18, 2025

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Today’s Newsletter (June 18th, 2025)

Futures in the green at the time of this writing as talking heads focus on today’s Federal Reserve interest rate policy decision along with key economic data such as housing starts and weekly jobless claims ahead of tomorrow’s holiday.

From Bloomberg

  • "US stock futures and bonds posted small gains with investors staying on the sidelines before the Federal Reserve’s monetary policy decision and release of new economic projections. Oil swung between gains and losses.

  • Bloomberg’s index of the dollar slipped after rising the most in a month in the previous session. S&P 500 contracts gained 0.2%. The yield on 10-year Treasuries fell two basis points to 4.37%. 

  • Fed policymakers face heightened uncertainty as geopolitical tension adds to the inflation and labor market risks that are tied to the Trump administration’s trade policies. While tariffs haven’t so far accelerated price increases, consumers are turning anxious and household finances have worsened.

  • Officials are widely expected to hold policy steady on Wednesday for a fourth straight meeting."

In REIT News

  • Raymond James upgrades SMA to Strong Buy from Outperform (raise price target by $2 to $44)

  • Yesterday, BofA downgraded FVR to Underperform from Neutral (lowered price target by $4 to $11)

  • KRG priced $300 million of 5.20% senior notes due 2032 on behalf of its operating partnership and intends to use the net proceeds to repay in full its $150M Term Loan, to repay in full its 2025 Notes, with an aggregate principal amount outstanding of $80 million, to repay all or a portion of the borrowings outstanding under its Revolving Facility, and for general corporate purposes

  • DLR priced €850 million of 3.875% Guaranteed Notes due 2034 on behalf of its operating partnership 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, including potentially for the repayment of other debt, or the redemption, repurchase, repayment or retirement of outstanding equity or debt securities, or a combination of the foregoing

  • BDN priced $150 million of 8.875% guaranteed notes due 2029 on behalf of its operating partnership and intends to use the net proceeds to repay outstanding borrowings under its $600 million unsecured revolving credit facility and to fund a partial repayment of its secured debt

  • SITC announced the sale of The Promenade at Brentwood (Brentwood, MO) for $71.6 million and the sale of Chapel Hills West (Colorado Springs, CO) for $23.7 million, both prior to closing costs, prorations and other closing adjustments where a portion of net proceeds were used to repay $13.9 million of mortgage debt plus its Board of Directors declared a special cash distribution on its common shares of $1.50/common share payable on July 15, 2025 to shareholders of record at the close of business on June 30, 2025

  • SMA announced the acquisition of five Class A, high-quality self-storage properties strategically located throughout the Houston Metropolitan Statistical Area with more than approximately 420,000 net rentable square feet and approximately 3,800 storage units

  • FCPT announced the acquisition of an Olive Garden property located in a strong retail corridor in North Carolina for $4.1 million and noted that the property is corporate-operated under a long-term triple net lease and priced at a cap rate in range with previous transactions

  • AHH announced that A. Russell Kirk will retire from the Company’s Board of Directors

  • Moody’s affirmed ELME’s senior unsecured rating at “Baa2” and senior unsecured MTN program at “(P)Baa2” with a stable outlook

  • WPC announced the release of its 2024 Corporate Responsibility Report which was prepared in reference to disclosure standards established by the Task Force on Climate-related Financial Disclosures (TCFD) and Global Reporting Initiative (GRI) and summarizes its progress and achievements across corporate responsibility initiatives, focused on the company's environmental, social and governance objectives

  • Yesterday morning, MPW announced with Praemia REIM that their 50/50 JV has refinanced its maturing seven-year debt agreement at a 5.1% fixed rate as the €702.5 million non-recourse, 10-year non-amortizing debt is secured by a portfolio of German rehabilitation hospitals operated by MEDIAN, the largest operator of rehabilitation hospitals in Europe and the majority of the new secured loan is expected to fund repayment of the €655 million secured loan arranged upon the joint venture’s 2018 formation

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Have a great day!

David Auerbach