The Daily REITBeat | Wednesday, September 25th, 2024

"Modest Moves?"

Author

David Auerbach
September 25, 2024

Good Morning!

Dow futures relatively flat at the time of this writing as talking heads set the stage for today’s New Home Sales data and tomorrow’s GDP report.

From Bloomberg

  • "US stock futures pointed to modest moves on Wall Street as investors questioned the effectiveness of the latest China stimulus and awaited clues on the US economy. 

  • Contracts on the S&P 500 were steady after the benchmark hit its 41st record close this year on Tuesday. Nasdaq 100 futures retreated 0.2% as US-listed Chinese tech stocks fell in premarket trading. Treasuries posted small moves.

  • Traders are seeking fresh catalysts with growth concerns lingering after last week’s half-point Federal Reserve interest-rate cut. Wednesday’s policy moves from China failed to ripple beyond Asian markets and investors are looking to a speech by Fed Chair Jerome Powell and price-growth data at the end of the week.

  • “We’ve been here before with China,” said Guy Miller, chief market strategist at Zurich Insurance Co. “Really potent fiscal as well as monetary policy is needed to change the direction of travel. So far that direction of travel has not changed.”"

In REIT News

  • AHR exercised its purchase option to acquire the remaining 24% minority membership interest in Trilogy REIT Holdings, LLC that had been held by the Company's JV partner, an affiliate of NorthStar Healthcare Income, Inc for a total all-cash purchase price of approximately $258 million, which includes the pre-negotiated "base" purchase price of $247 million and the approximate $11 million pro-rata distribution owed to the Company's JV partner through the closing date of the acquisition, and upon the closing of the acquisition, the Company became the sole owner of Trilogy Holdings and the Company's Integrated Senior Health Campuses

  • PINE announced updated third quarter and year-to-date 2024 investment and disposition activities commenting that 1) In September 2024, the Company purchased and amended a first mortgage construction loan secured by a Publix-anchored shopping center and three outparcels located in Charlotte, NC where The current loan commitment is for $17.8 million, of which $10.0 million was funded at closing at an initial interest rate of 10.25%; 2) The Company’s third quarter total investment activity, including acquisitions and structured investments activity, now totals $55.3 million at a weighted average initial investment yield of 9.2%; 3) The Company’s year-to-date total investment activity, including acquisitions and structured investment activity, now totals $84.2 million at a weighted average initial investment yield of 9.4%; 4) Since the last announced update, the Company sold an additional five net leased retail properties, leased to Hobby Lobby, Long John Silvers, Chick-fil-A, Tractor Supply and LA Fitness, for a total disposition volume of $28.5 million; 5) The Company has one additional property, leased to Walgreens, under a non-refundable contract which is expected to close prior to the end of the third quarter; 6) To date, the Company’s third quarter total disposition volume, inclusive of property and structured investment sales, now totals $44.1 million at a weighted average exit cash cap rate of 6.7% and 7) The Company’s year-to-date disposition volume, inclusive of property and structured investment sales, now totals $64.3 million at a weighted average exit cash cap rate of 7.0%

  • In an 8-K filing, CCI announced that Michael J. Kavanagh, its Executive Vice President and Chief Operating Officer–Towers, has elected to retire from the Company effective October 28, 2024 and will remain with the Company in an advisory capacity through December 31, 2024 to assist the Company with various matters as the Company appointed Catherine Piche as EVP and COO–Towers effective October 28th

  • Yesterday, INVH announced that it had reached agreement with the Federal Trade Commission resolving the FTC’s civil investigation into certain company business practices and as part of the resolution, the Company will pay the FTC $48 million in monetary relief with no civil penalties and the agreement contains no admission of wrongdoing by Invitation Homes

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Welcome your comments and feedback.

Have a great day!

David Auerbach & Mary Jensen