The Daily REITBeat | Wednesday, October 2nd, 2024

"Wait and See"

Author

David Auerbach
October 02, 2024

Good Morning!

Dow futures down around 125 points at the time of this writing as talking heads focus on the Israel/Iran growing conflict, rising oil prices and uncertainty in the markets.

From Bloomberg

  • "US futures fell while Treasuries unwound some of the previous day’s gains as flaring tensions in the Middle East put markets in a wait-and-see mode.

  • With traders awaiting Israel’s response to a missile barrage from Iran, and Brent crude topping $75 a barrel, geopolitical fears have replaced optimism around central bank policy easing as the main market driver. The escalation in the region spurred a flight to safety on Tuesday and sent Wall Street’s fear gauge — the VIX — to a key level that usually indicates more market swings are in store. 

  • Futures on the S&P 500 slipped 0.2% and Europe’s stocks benchmark erased earlier gains. Yields on 10-year Treasuries rose three basis points to 3.76% compared with a low of 3.69% on Tuesday when demand for havens fueled appetite for government bonds. The dollar was flat. 

  • “Clearly there is a lot of uncertainty,” Anna Rosenberg, head of geopolitics at Amundi Asset Management, told Bloomberg TV. “Nevertheless I think the market is still very much operating in the base-case expectation that it remains more or less contained and doesn’t spiral out in an all-out war. And I think right now, that is the right thing to do.”"

In REIT News

  • Wells Fargo downgrades SITC to Equalweight from Overweight (lower price target by $49 to $19)

  • FVR announced the pricing of its underwritten initial public offering of 13,200,000 shares of its common stock at the initial public offering price of $19.00/share raising gross proceeds of $250.8 million and intends to use the net proceeds from the offering to repay borrowings outstanding under its revolving credit facility and term loan credit facility plus for general business and working capital purposes, including potential future acquisitions

  • KIM announced the acquisition of Waterford Lakes Town Center, a 976K sf signature asset spanning 79 acres in Orlando, FL for $322 million, including the assumption of a $164 million mortgage and noted that the property, which is approximately 99% occupied, features a high-quality tenant mix that combines lifestyle and entertainment uses with essential goods and services

  • S&P affirmed EPR’s “BB+” issuer credit rating on the company, “BBB-“ issue-level rating on its unsecured notes and ”B+” rating on its preferred stock with a stable outlook

  • Yesterday morning, TRNO announced that it has executed a lease for 75,000 sf in Elizabeth, NJ with a third-party logistics provider noting that the lease commenced on September 30, 2024 and will expire January 2028

  • Yesterday morning, SUI announced that it did not incur any material building or structure damage as a result of Hurricane Helene and does not expect Hurricane Helene to have a significant impact on its operating results or financial condition

  • Yesterday morning, PEB announced the release of its sixth annual Corporate Sustainability Report, highlighting the Company's 2023 performance and efforts toward sustainable business practices and responsibility to employees and stakeholders

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Have a great day!

David Auerbach & Mary Jensen