The Daily REITBeat | Wednesday, September 17th, 2025

"What's the Commentary?"

Author

David Auerbach
September 17, 2025

Today’s Newsletter (September 17th, 2025)

Futures mixed at the time of this writing as talking heads turn their attention to today’s Federal Reserve interest rate policy decision and the outlook for future interest rate cuts.

From Bloomberg

  • "Stocks treaded water as markets saw muted moves across most asset classes, with traders taking risky bets off the table ahead of Wednesday’s Federal Reserve interest-rate decision.

  • With equities near record highs, the mood reflected uncertainty over how the Fed would frame the path for rates, as a quarter-point cut at this meeting and three more by April were already priced in. The risk is that policymakers — while aiming to safeguard the labor market — strike a less dovish tone to keep inflation in check.

  • Also looming over the meeting is the standoff over Fed policy, with President Donald Trump’s hard-charging push for lower borrowing costs clashing with Chair Jerome Powell’s hitherto cautious stance on tariff-driven price pressures."

In REIT News

  • Yesterday, Freedom Broker initiated SILA with a Buy rating ($34 price target)

  • Scotiabank upgrades KRC to Sector Perform from Sector Underperform (raise price target by $7 to $47)

  • Goldman Sachs downgrades AMH to Neutral from Buy (lower price target by $6 to $37)

  • Goldman Sachs downgrades CPT to Sell from Neutral (lower price target by $12 to $106)

  • Rithm Capital entered into a definitive agreement to acquire PGRE for $6.60/share or $1.6 billion in total cash consideration and the transaction is expected to close in late Q4’25

  • SKT acquired Legends Outlets, an approximately 690,000 sf open-air outlet center in Kansas City, KS for $130 million and noted that it is 93% occupied and features more than 100 stores, restaurants, and entertainment venues

  • HPP amended and extended its existing unsecured revolving credit facility, which was set to mature at year-end 2026 including extension options as the amendment initially increases permitted borrowings to $795 million, compared to $775 million previously, with a year-end 2026 maturity date as the company will have access to $462 million of permitted borrowings maturing year-end 2029 including two six-month extension options

  • PEB priced a private offering of $350,000,000 aggregate principal amount of 1.625% Convertible Senior Notes due 2030 and intends to use the net proceeds from the offering to repurchase, in privately negotiated transactions, $400 million of its 1.75% Convertible Senior Notes due 2026

  • Yesterday, S&P Global raised DHC’s issuer credit rating to “B-“ from “CCC+” plus assigned its “B+” issue-level rating to its new senior secured notes plus raised its issue-level rating on the existing senior secured notes and guaranteed unsecured notes to “B+” from “B” and its issue-level rating on the non-guaranteed senior unsecured notes to “B-“ from “CCC+” with a stable outlook

  • Yesterday morning, SVC priced an aggregate principal amount at maturity of $580 million of zero coupon senior secured notes due September 2027 which will accrete at a rate of 7.50% annually and will use the net proceeds to redeem in full its outstanding $450 million of 4.750% Senior Unsecured Notes due October 2026 and to repay amounts outstanding under its revolving credit facility

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Have a great day!

David Auerbach