The Daily REITBeat | Wednesday, October 30th, 2024

"Underlying Resilience?"

Author

David Auerbach
October 30, 2024

Good Morning!

Dow futures down over 50 points at the time of this writing as talking heads focus on a big slate of corporate earnings, economic reports, and the upcoming election. Things are heating up.

From Bloomberg

  • "US equity futures fluctuated as investors sifted through corporate earnings, with results from Microsoft Corp. and Meta Platforms Inc. coming later in the day. Gold and Bitcoin traded near all-time highs.

  • Alphabet Inc. rallied more than 5% in premarket trading after the Google parent’s earnings beat estimates, while Advanced Micro Devices Inc. sank 8% after a lackluster revenue forecast. Eli Lilly & Co. tumbled 10% after sales of its blockbuster weight-loss drug fell short of expectations. Qorvo Inc., whose biggest customer is Apple Inc., tumbled 19% after forecasting revenue and profit far short of estimates. 

  • Just about a week away from the Fed’s decision, investors are turning their focus to three high-profile reports in the US that look set to show underlying resilience in the economy and a temporary hiccup in job growth. They’re also positioning for a too-close-to-call US presidential election on Nov. 5.

  • “The mood in the market today feels more like the calm before the next storm,” said Hebe Chen, a market analyst at IG Markets Ltd. “Traders are on edge, bracing for the incoming tide of uncertainties from multiple sources,” including the US election and major tech earnings.

  • A Bloomberg gauge of the dollar snapped a three-day advance, and Treasury yields fell."

In REIT News

  • Raymond James upgrades CTO to Strong Buy from Outperform (raise price target by $2 to $24)

  • Raymond James downgrades ROIC to Market Perform from Outperform

  • AAT, AMH, BXP, CHCT, CTRE, ESS, EXR, FSP, HR, ILPT, IVT, JBGS, PK, SITC, STAG, UE, WPC announced quarterly earnings

  • BNL, EPR, EQIX, EQR, FCPT, FPI, FRT, INVH, IRT, KRG, MAA, NSA, OHI, OPI, PGRE, PSA, UDR, VRE, VTR, WSR announce earnings after the close of trading while CIO, KIM, NNN, UNIT announce tomorrow morning before the open

  • AMH announced that in October 2024, the Company acquired a portfolio of nearly 1,700 single-family rental homes across 13 markets for approximately $480 million and funded the transaction through a combination of cash on hand and its previously undrawn revolving credit facility

  • CTRE announced that, together with a joint venture partner, it has entered into a binding agreement to acquire a portfolio of 31 skilled nursing facilities with a total of 3,290 licensed beds for a purchase price of approximately $500 million anticipates that the transaction will close in the fourth quarter of 2024

  • ESRT signed a full floor, 26,782 sf expansion lease with law firm Hecker Fink LLP for a total of 53,779 sf of office space across two floors at the iconic Empire State Building

  • Blackwells Capital LLC released a letter to BHR shareholders that “Brancous LP1 has issued several public letters to Braemar. While Brancous is free to have its say as a shareholder of the Company, we believe its accusations and inferences are increasingly alarmist in nature, and without merit. Left uncorrected, Blackwells is concerned these accusations could have a negative impact on Braemar’s business… Blackwells calls on Brancous and all shareholders to join us in voting in favor of the enhanced Board and management team as they unlock value for all shareholders.”

  • Moody’s withdrew the “B3” corporate family rating and “SGL-3” speculative liquidity rating of CBL’s limited partnership along with its stable outlook as “we believe we have insufficient or otherwise inadequate information to support the maintenance of the rating(s)”

  • AKR announced 1) with TPG Real Estate a joint venture to acquire the LINQ Promenade in Las Vegas, NV from Caesars Entertainment for $275 million and 2) with Cohen & Steers that they have entered a joint venture to own The Walk at Highwoods, an open-air community shopping center in Tampa, FL noting that it is a 141,000 sf power center located approximately 20 miles northeast of downtown Tampa in a high-growth suburban area and is fully occupied by national and local retailers and tenants including HomeGoods, Michael's, Dunkin', F45 Training, and European Wax Center

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Have a great day!

David Auerbach & Mary Jensen