The Daily REITBeat | Wednesday, October 8th, 2025

"Concerns? What Concerns??"

Author

David Auerbach
October 08, 2025

Today’s Newsletter (October 8th, 2025)

Futures in the green at the time of this writing as talking heads focus on Day 8 of the government shutdown while gold and bitcoin continue their upward climbs. Another day with little economic data where AI chatter dominates the airwaves.

Trying something new in the note today with hyperlinks to the direct press releases over the ticker symbols in the News section. Thoughts? Like or Dislike? Send me a message…

From Bloomberg

  • "US equity futures gained, suggesting the stocks rally is set to resume as investors cast aside worries about lofty valuations and the billions pouring into artificial intelligence. Gold surged above $4,000 an ounce.

  • Contracts on the S&P 500 were about 0.2% higher after the benchmark snapped an eight-day winning streak. Nasdaq 100 futures also rose. Advanced Micro Devices Inc. extended gains in premarket trading after an explosive rally following its multibillion AI deal with OpenAI. Tesla Inc. advanced after it unveiled a cheaper version of its top-selling electric vehicle.

  • The dollar gained for a third day against major peers, while Treasury yields dipped.

  • Concerns have been growing that $16 trillion surge in the S&P 500 from its April lows had gone too far. Tuesday’s drop came amid mounting chatter about lofty valuations around artificial intelligence, with some market participants seeing an echo of the excesses that led to the dot-com crash 25 years ago. Still, many investors fear missing out on further gains, with the upcoming earnings season set to provide clues on the rally’s sustainability.

  • “There are worrying signals on the AI rally, which reminds me of 1997 when I started my career,” said Gilles Guibout, head of European equities at Axa Investment Managers. “The bubble burst in 2000 but those managers who had refused to follow the rally, rightfully expecting it to go pop, lost a lot of money for their clients. There’s a real risk to get out of the AI trade too early; what you need to do is stay invested but with your finger on the exit button and stay diversified.””

In REIT News

  • RBC initiates HR with a Sector Perform rating ($19 price target)

  • Wolfe Research initiates HIW with an Outperform rating ($38 price target)

  • Citizens initiates MRP with an Outperform rating ($40 price target)

  • Oksenholt Capital Management LLC issued a letter outlining serious concerns about CIO’s leadership, performance, and opposition to the proposed merger with affiliates of Elliott Capital noting that “they believe the company is significantly undervalued and proposes restructuring plan and recommends voting “No” on proposed acquisition/merger with MCME Carell”

  • UDR announced the appointment of Richard “Ric” B. Clark to its Board of Directors effective October 3 as Mr. Clark will serve as an independent director and has been appointed to the Nominating and Governance Committee and the Audit and Risk Management Committee

  • BHR entered into a definitive agreement to sell the 410-room The Clancy in San Francisco for $115 million ($280,487 per key) and has received a $3.5 million non-refundable earnest money deposit and noted that the sale price represents a 5.0% capitalization rate on net operating income for the trailing 12 months ended August 2025

  • LTC announced the sale of two skilled nursing centers in FL totaling 240 licensed beds for $42 million and expects a gain on sale of approximately $26 million

  • TRNO announced its operating, investment and capital markets activity for the third quarter of 2025 plus sold an industrial property located in South Brunswick, NJ for a sale price of approximately $144.2 million noting that the property consists of a 603,000 sf industrial distribution building on 35.5 acres which is 100% leased and the unleveraged internal rate of return generated by the investment was 13.4%

  • PINE announced the acquisition of a three-property portfolio totaling 8,890 sf located in IL, VA and LA for $2.8 million reflecting a weighted average going-in cash yield of 8.5% and noted that two of the properties are net leased to Hardee’s while the third is net leased to Jiffy Lube

  • UMH closed on the acquisition of a manufactured home community located in Albany, GA for a total purchase price of $2.6 million noting that this community contains 130 developed homesites, of which 32% are occupied and the community is situated on 43 acres

  • DHC reiterated that, as part of the previously disclosed wind-down of AlerisLife Inc., the management agreements for 116 of DHC’s senior housing operating portfolio (“SHOP”) communities are being sold and the operations transferred as seven different managers, with established records of senior living operations will take over the 116 communities

  • Yesterday, Fitch Ratings affirmed LINE’s Long-Term Issuer Default Rating at “BBB+” and revised its outlook to negative from stable

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Have a great day!

David Auerbach