The Daily REITBeat | Thursday, March 27th, 2025

"Tariff Takedown"

Author

David Auerbach
March 27, 2025

Good Morning!

Futures mixed at the time of this writing as talking heads focus on President Trump’s tariffs on automakers and other potential tariffs on the table as it weighs on markets. Another busy economic calendar day ahead which could have some Federal Reserve implications in the future.

From Bloomberg

  • "European stocks fell as the US pushed ahead with harsh tariffs on automakers and threatened more sweeping trade levies, reinforcing investor concern about the hit to global economic growth.

  • The Stoxx 600 slid 0.5%. Stellantis NV, which makes the Jeep Compass SUV in Mexico, and Mercedes-Benz Group AG fell about 3%. Traders also sold US auto shares, with General Motors Co. tumbling 6% in pre-market trading. Tesla Inc. inched higher on speculation its US factories will help insulate it from tariffs.

  • Meanwhile, S&P 500 futures were little changed after the previous day’s 1.1% drop. Gold advanced and the dollar steadied.   

  • President Donald Trump is moving quickly ahead with more trade levies, announcing on Wednesday that auto imports would be slapped with a 25% tariff and suggesting further duties on the European Union and Canada. According to Bloomberg Intelligence, Porsche AG and Mercedes-Benz are likely to be the hardest hit by the latest salvo. 

  • “Tariffs are front and center on people’s minds,” said Arun Sai, senior multi-asset strategist at Pictet Asset Management. “We all know that tariffs are stagflationary and markets have been trying to price that to different extents. What we don’t know yet is what’s the ultimate lasting impact.”"

In REIT News

  • Wolfe Research upgrades EQIX to Outperform from Peer Perform ($978 price target)

  • Wells Fargo downgrades OHI to Equalweight from Overweight (lower price target by $2 to $39)

  • VICI priced $400 million of 4.75% senior unsecured notes due 2028 and $900 million of 5.625% senior unsecured notes due 2035 and intends to use the net proceeds to repay all or a portion of its outstanding (i) $500.0 million in aggregate principal amount of its May 2025 Maturity Notes, (ii) $799.4 million in aggregate principal amount of its June 2025 Maturity Notes, and (iii) $0.6 million in aggregate principal amount of its 2025 MGP Notes with any remaining proceeds to be used for general corporate purposes, which may include the acquisition and improvement of properties, capital expenditures, working capital and the repayment or refinancing of indebtedness

  • NHI announced that Robert W. Chapin, Jr. is joining the Board of Directors effective immediately and has been appointed to the Board's special committee of disinterested directors to negotiate, review, analyze and approve any potential lease between NHI and NHC and all related items or explore any other possible alternatives

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Welcome your comments and feedback.

Have a great day!

David Auerbach