The Daily REITBeat | Wednesday, October 16th, 2024

"Underlying Strength"

Author

David Auerbach
October 16, 2024

Good Morning!

Dow futures up around 25 points at the time of this writing as talking heads focus on a slate of corporate earnings, 10-year treasury hovering around 4% and the upcoming Bank of England interest rate policy decision.

From Bloomberg

  • "US equity futures edged higher Wednesday as chip stocks recovered partially from the previous session’s rout and Morgan Stanley’s results beat estimates.

  • S&P 500 climbed 0.1 % and Nasdaq 100 contracts gained 0.2%, a day after a profit warning from Dutch chip equipment maker ASML Holding NV rattled sentiment. Nvidia Corp. moved higher in early-hours trading after sinking nearly 5% on Tuesday.

  • Morgan Stanley also advanced in premarket trading after posting sales and trading revenue that exceeded analyst predictions. It joined Wall Street rivals Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., whose results also surpassed expectations.

  • ASML’s slide Tuesday sent ripples across the industry, resulting in more than $420 billion of market value loss for an index of US-traded chip stocks and the largest Asian peers.

  • While the weakness in names like Nvidia and ASML has an impact on the broader market, Peter Fitzgerald, chief investment officer for macro and multi-asset at Aviva Investors, pointed to the strength of demand for artificial intelligence as well as supportive central bank policy.

  • “Our view is that there is enough underlying strength in markets,” Fitzgerald said. “Particularly with central banks on an easing path providing broad support.”"

In REIT News

  • Yesterday, Lucid Capital Markets initiated CIO ($9), CTO ($23), FPI ($12.50), PINE ($22), UMH ($22) and WSR ($17) with Buy ratings

  • Yesterday, Lucid Capital Markets initiated GOOD ($17) and LAND ($15) with Neutral ratings

  • PLD announced 3Q earnings while CCI, FR, REXR, SLG announce after the close of trading

  • SVC announced that its Board of Trustees has reduced the regular quarterly cash distribution on its common shares from $0.20 per common share ($0.80 per share per year) to $0.01 per common share ($0.04 per share per year) where the dividend reduction will result in $127 million of annual savings plus announced that it has plans to sell 114 focused service hotels in 2025 managed by Sonesta International Hotels Corporation with an aggregate of 14,925 keys and an aggregate net carrying value of $850.0 million and use the net sales proceeds to repay debt

  • AHT announced that its Board of Directors unanimously approved a reverse split of the Company's common stock at a ratio of 1-for-10 where the reverse stock split will become effective as of the close of business on October 25, 2024 and the common stock is anticipated to commence trading on the New York Stock Exchange on October 28, 2024 on the split-adjusted basis

  • NXRT announced that the Company's properties did not sustain any material damages as a result of Hurricane Milton

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Have a great day!

David Auerbach & Mary Jensen