The Daily REITBeat | Wednesday, October 9th, 2024

"Stormy Weather"

Author

David Auerbach
October 09, 2024

Good Morning!

Dow futures down around 25 points at the time of this writing as talking heads focus on Hurricane Milton, Google potential break-up and the CPI report coming due tomorrow.

From Bloomberg

  • "US stock futures wavered Wednesday, as Treasury yields held above the key 4% mark and investors fretted about the prospect of an antitrust crackdown on Google-owner Alphabet Inc.

  • Contracts on the S&P 500 and Nasdaq 100 stood about 0.2% lower. Alphabet shares fell about 1% in premarket trading after the US Justice Department said it’s considering asking a federal judge to force Alphabet’s Google search engine to sell parts of its business. This would be the most significant move to rein in a major tech company since a failed bid to break up Microsoft Corp. two decades ago. 

  • While fears of crackdowns on Big Tech have been around for a while, the prospect of an actual breakup push is weighing on sentiment, said Kevin Thozet, a member of the investment committee at French asset manager Carmignac. However, he downplayed the eventual impact, because “at the end of the day, when we are looking at individual values of those separate business lines within Google, investors could be better off.” 

  • Other major premarket movers included Boeing Co, which shed 1.5% after negotiations to end an almost month-long workers’ strike collapsed.

  • In Europe, the Stoxx 600 index rose 0.2%, with China-exposed stocks lifted by expectation that Beijing will announce additional economic stimulus measures at a news briefing on Saturday."

Thank You!!!

A special thank you to NAREIT for covering the launch of the REIT Jobs website, AllTheREITJobs.com!

Here was the story that was published yesterday: https://www.reit.com/news/articles/new-reit-jobs-website-seeks-to-consolidate-industry-opportunities

In REIT News

  • VNO announced that Primark, the international clothing retailer, has signed a 78,760 sf lease to open its first Manhattan store at 150 West 34th Street in THE PENN DISTRICT

  • GNL announced continued progress on its 2024 strategic disposition plan where through Q3 2024, the Company has closed nearly $569 million of dispositions, and, including its pipeline, dispositions total $870 million

  • TRNO announced its operating, investment and capital markets activity for the third quarter of 2024 commenting that 1) The operating portfolio was 97.0% leased at September 30, 2024 as compared to 96.0% at June 30, 2024 and 98.3% at September 30, 2023; 2) The same-store portfolio of approximately 14.6 million square feet was 97.3% leased at September 30, 2024 as compared to 96.0% at June 30, 2024 and 98.4% at September 30, 2023; 3) The improved land portfolio of 45 parcels totaling approximately 152.4 acres was 98.1% leased at September 30, 2024 as compared to 98.1% at June 30, 2024 and 96.3% at September 30, 2023; 4) Cash rents on new and renewed leases totaling approximately 0.5 million square feet and 0.3 acres of improved land commencing during the third quarter increased approximately 24.1% with a tenant retention ratio of 67.3% for the operating portfolio and 100.0% for the improved land portfolio. Cash rents on new and renewed leases totaling approximately 1.6 million square feet and 22.5 acres of improved land commencing during the nine months ended September 30, 2024 increased approximately 40.5% with a tenant retention ratio of 58.0% for the operating portfolio and 66.3% for the improved land portfolio; 5) acquired one industrial property consisting of one building containing approximately 26,000 square feet for a purchase price of approximately $7.6 million; 6) issued 2,976,266 shares of common stock with a weighted average offering price of $68.70 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $204.5 million

  • KRG announced that, on October 3, 2024, it closed on an amended $1.1 billion unsecured revolving credit facility and an amended $250 million unsecured term loan facility where the term of the Revolving Credit Facility was extended three years and now matures on October 3, 2028 with the option to further extend such maturity date by either one 1-year period or up to two 6-month periods, subject to the payment of an extension fee and certain other customary conditions while the interest rate margin on the Term Loan Facility was reduced and includes a Leverage Toggle that generally conforms to the Revolving Credit Facility and interest will now accrue at a rate of Adjusted Term SOFR plus a margin ranging from 0.75% to 1.60% (from 2.00% to 2.50% previously)

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Have a great day!

David Auerbach & Mary Jensen