The Daily REITBeat th September 11 , 2019
Total % Price Change Return Index Closing Price Change 1D 5D 1M 3M YTD Dow Jones Industrial Average 26909.43 73.92 0.28 3.03 2.37 3.48 15.36 Nasdaq Composite Index 8084.16 -3.28 -0.04 2.67 1.57 3.74 21.84 S&P 500 Index 2979.24 0.81 0.03 2.51 2.08 3.45 18.84 MSCI US REIT Index 1277.86 -10.35 -0.80 -0.44 1.60 3.04 20.86 FTSE NAREIT REIT Index 771.66 -8.97 -1.15 -1.56 1.08 3.08 22.73 VIX Index 15.19 -0.08 -0.59 -22.79 -15.47 -4.53 -40.24
MSCI US REIT Index Daily Performance Chart
IYR/VNQ Daily Performance Chart
PAGE 1
The Daily REITBeat th September 11 , 2019
REIT/Real Estate Headlines
SAFE Announced it has entered into a definitive agreement to create a new $275 million Safehold™ ground lease at 195 Broadway in New York City
HPT Priced a 3-part notes offering totaling $1.7 billion comprised of $825 million of 4.35% unsecured senior notes due 2024, $450 million of 4.75% unsecured senior notes due 2026, and $425 million of 4.95% unsecured senior notes due 2029
STAY Priced $750 million of 4.625% senior notes due 2027 in a private offering and intends to use the net proceeds from this offering, together with cash on hand, to repay a portion of its outstanding borrowings under its existing term loan and to pay related fees and expenses
WPC Priced an underwritten public offering of €500 million aggregate principal amount of 1.350% Senior Notes due April 15, 2028
BFS Priced 4 million depositary shares, each representing a 1/100th fractional interest in a share of the Company's 6.00% Series E Cumulative Redeemable Preferred Stock raising net proceeds of $96.35 million and intends to use the net proceeds from this offering to redeem all or a portion of the outstanding shares of its 6.875% Series C Cumulative Redeemable Preferred Stock and the related depositary shares
HST Yesterday morning, S&P raised its issuer credit rating to “BBB-“ from “BB+” with a stable outlook
CHSP Yesterday morning, shareholders approved the merger with PK which is expected to close on or about September 18th
HT Yesterday morning, company closed on the refinancing of its $300 million Senior Unsecured Term Loan and also entered into a series of new swap contracts to fix the interest rates on the remaining $400.9M of Senior Unsecured Term Loans which eliminates all near term debt maturities
DRH Yesterday morning, company announced update on the impact of Hurricane Dorian and expects “the storm-related earnings disruption to be less than $1 million in Hotel Adjusted EBITDA for the portfolio"
REIT Analyst Initiations/Upgrades/Downgrades/Reiterations
INITIATIONS HLT: Yesterday, Bernstein initiated with an Outperform rating ($108 price target) MAR: Yesterday, Bernstein initiated with a Market Perform rating
UPGRADES DLR: Guggenheim downgrades to Neutral from Buy (raise price target by $5 to $132) COR: Morningstar upgrades to Hold from Sell (maintain $105 price target)
DOWNGRADES VNO: Yesterday, Morningstar downgraded to Hold from Buy (maintain $68 price target) HST: Yesterday, Morningstar downgraded to Hold from Buy (maintain $19.60 price target) ESRT: Yesterday, Morningstar downgraded to Hold from Buy (maintain $15 price target)
PAGE 2
The Daily REITBeat th September 11 , 2019
Guggenheim Tower + Data Center REIT Reiterations Buy: CONE ($81), EQIX ($585), QTS ($54) Neutral: AMT ($240), CCI ($148), COR ($119), SBAC ($255)
Raymond James REIT Reiterations (Yesterday) Strong Buy: ADC ($84), ROIC ($20) Outperform: NNN ($62), STOR ($40) Market Perform: O, SAFE
Wells Fargo REIT Reiterations (Yesterday) Outperform: HST ($20), RHP ($90), SHO ($15) Market Perform: REXR ($48)
REITERATIONS UE: Compass Point reiterates Buy rating (raise price target by $2 to $22) MAA: Yesterday, SunTrust Robinson reiterated Buy rating (raised price target by $10 to $130) VER: Yesterday, JMP reiterated Market Outperform rating (raised price target by $1 to $10) MAC: Yesterday, Barclays reiterated Equalweight rating (lowered price target by $3 to $33) HT: Yesterday, Stifel reiterated Hold rating (lowered price target by $1.50 to $16)
Daily REIT Performance by Sector
Sector / (%) Retail REITs 1.01 Lodging REITs 1.00 Office REITs 0.46 Residential REITs 1.35 Diversified REITs 1.38 Industrial REITs 1.62 Specialized REITs 1.99 Health Care REITs 2.28
Top 10 REIT Movers Yesterday
Ticker UP (%) Ticker DOWN (%) CBL 25.24 CTRE 4.85 GPI 6.50 SBAC 4.33 PEI 6.47 COR 3.96 TCO 6.34 PSB 3.64 SKT 6.32 AMT 3.48 CDR 6.23 OUT 3.41 MAC 5.98 CHCT 3.21 CLDT 4.40 ELS 3.03 ANH 4.37 TRNO 2.96 HT 4.21 CCI 2.90
PAGE 3
The Daily REITBeat th September 11 , 2019
Top 10 REIT Volume Disparities vs 30-Day Average
Ticker UP (%) Ticker DOWN (%) MPW 361.27 PLYA 69.03 CBL 238.44 CUZ 55.94 SKT 156.98 CORR 54.64 AAT 156.62 CMO 51.17 AMT 145.63 SRC 50.27 CHSP 141.51 HHC 48.35 MAC 129.83 RWT 45.73 SBAC 129.37 PLYM 44.10 VER 127.88 SAFE 43.55 OHI 123.79 SMTA 43.54
REIT/Real Estate Articles
APARTMENT REITS/REAL ESTATE Miami NXRT Avant at Pembroke Pines Acquisition Article: https://www.bizjournals.com/southflorida/news/2019/09/10/public-company-buys-south-florida-apartment.html
HEALTH CARE REITS Commercial Property Executive HCP 35 Cambridge Park Drive Acquisition Article: https://www.cpexecutive.com/post/hcp-to-acquire-cambridge-building-for-333m/
INDUSTRIAL REITS Seeking Alpha Hoya Industrial REITs Sector Analysis Article: https://seekingalpha.com/article/4290856-industrial- reits-bite-hand-feeds
LODGING REITS/REAL ESTATE WSJ Anbang Luxury Hotel Portfolio Disposition Article: https://www.wsj.com/articles/china-s-anbang-to-sell-u-s- hotels-for-more-than-5-8-billion-11568148794 Bloomberg Anbang Luxury Hotel Portfolio Disposition Article: https://www.bloomberg.com/news/articles/2019-09- 10/anbang-sells-luxury-hotels-to-s-korea-s-mirae-for-5-8-billion GlobeSt.com CHSP/PK Merger Closure Update Article: https://www.globest.com/2019/09/10/chesapeake- shareholders-approve-2-7b-acquisition-by-park-hotels/ Commercial Property Executive HT Term Loan Refinancing Article: https://www.cpexecutive.com/post/hersha- hospitality-refinances-300m-term-loan/
MALL & RETAIL REITS/REAL ESTATE Commercial Property Executive WPG DeBartolo Commons Development Proposal Article: https://www.cpexecutive.com/post/washington-prime-group-jv-to-develop-youngstown-mixed-use-project/ Seeking Alpha Mall REIT Sector Outlook Article: https://seekingalpha.com/article/4290753-mall-turnaround
PAGE 4
The Daily REITBeat th September 11 , 2019
OFFICE REITS/REAL ESTATE WSJ Office Landlords Flexible Office Leasing Platforms Outlook Article: https://www.wsj.com/articles/weworks- latest-threat-old-school-landlords-trying-to-copy-wework-11568127640 NY Real Deal VNO 512 W. 22nd Street WarnerMedia Lease Article: https://therealdeal.com/2019/09/10/warnermedia-inks-deal-to-anchor-vornados-west-chelsea-spec-office- building/ GlobeSt.com VNO 330 W. 34th Street Marquee Brands Lease Article: https://www.globest.com/2019/09/10/marquee-brands-finalizes-lease-at-vornado-office-space/
SELF STORAGE REITS Commercial Property Executive Self Storage REITs Building Brand Awareness Article: https://www.cpexecutive.com/post/building-brand-awareness-in-the-self-storage-industry/
OTHER REIT SECTOR ARTICLES Washington JBGS West Half Opening Article: https://www.bizjournals.com/washington/news/2019/09/10/jbg- smith-west-halfs-inks-more-restaurants-opens.html ETF.com Real Estate ETFs Analysis Article: https://www.etf.com/sections/features-and-news/best-performing-real- estate-etfs Seeking Alpha REIT Investment Outlook Article: https://seekingalpha.com/article/4290407-5-biggest-myths-reit- investing
BLOOMBERG ECONOMIC CALENDAR * 8:30am: PPI Final Demand MoM, est. 0.0%, prior 0.2% * 8:30am: PPI Ex Food and Energy MoM, est. 0.2%, prior -0.1% * 8:30am: PPI Ex Food, Energy, Trade MoM, est. 0.2%, prior -0.1% * 8:30am: PPI Final Demand YoY, est. 1.7%, prior 1.7% * 8:30am: PPI Ex Food and Energy YoY, est. 2.15%, prior 2.1% * 8:30am: PPI Ex Food, Energy, Trade YoY, prior 1.7% * 10am: Wholesale Inventories MoM, est. 0.2%, prior 0.2% * 10am: Wholesale Trade Sales MoM, est. 0.5%, prior -0.3%
PAGE 5
The Daily REITBeat th September 11 , 2019
David Auerbach, Principal Mary Jensen, Founder & CEO [email protected] [email protected] 214.492.3777 310.526.1707
David Auerbach has been in the securities business for over 20 Mary Jensen is a proven strategic communicator and capital years serving as an institutional trader specializing in REITs (Real markets executive with progressive in-house experience in Estate Investment Trust), Equity and Preferred stocks, MLPs, corporate strategy, marketing, business development and ETFs, and Closed End Funds. He has spent his entire career in investor relations gained primarily within the REIT/Commercial Dallas, TX. Real Estate industry. Ms. Jensen is recognized for driving investment decisions by major Wall Street firms, enhancing David departed Esposito Securities after 6½ years in December stakeholder relationships and gaining better exposure with 2018 where he helped to build out the REIT/Real Estate platform financial institutions, as well as establishing business with institutional investors and Equity REITs and worked with partnerships and processes to achieve company goals. Serving as ETF issuers on seeding, relationship building, and order a trusted advisor to C-Suite Executives and company Boards, execution. David also specialized in Closed End Fund stocks Mary has a proven track record of effectively communicating an handling large blocks of trades in highly illiquid names. He also organization’s value proposition and engaging prospective built a niche working with partners in handling new preferred investors. offerings. Mary has worked in the REIT space for more than 19 years with several prominent REITs, such as Douglas Emmett, Inc. (NYSE: Prior to joining Esposito Securities, David spent 11 years at DEI), where she counseled them prior to, during and for several Green Street Advisors as a Vice President of Institutional Trading years after their IPO through various equity and debt offerings as handling REIT order execution and sales trading on behalf of well as navigating them through the worst financial crisis in institutional clients, hedge funds, pension funds, and other history. Other prominent REITs include, Healthcare Trust of investors. Before that, David worked at Financial Marketplace America (NYSE: HTA), Essex Property Trust, Inc. (NYSE: ESS), Inc. for 2 years as a retail investment adviser. Spirit Realty Capital (NYSE: SRC) and Mack-Cali Realty (NYSE: CLI). David has been quoted by Bloomberg, WSJ, Financial Times, REIT.com, and GlobeSt.com among others. David graduated Ms. Jensen holds a Master of Business Administration from the from the University of Texas at Austin in May 1999 with a BBA in Graziadio School of Business and Management, Pepperdine Finance and graduated from Southern Methodist University in University, and is an active member of the National Investor May 2005 with an MBA in Finance. He currently holds FINRA Relations Institute (NIIRI) and the National Association of Real Series 3, 7, 24, 55, and 63 registrations. Estate Investments Trusts (NAREIT).
Need a customized report that provides a deeper dive into how stock or fund is trading? Typical surveillance products are prohibitively expensive for the average company. With over 20 years of trading, investor relations and capital markets experience, IRRealized can provide you with detailed reports specific to your firm, industry and peers. Give us a call to determine if a customized report, at a reasonable price is right for you.
Confidentiality Notice: This email, including attachments, may include non-public, proprietary, confidential or legally privileged information. If you are not an intended recipient or an authorized agent of an intended recipient, you are hereby notified that any dissemination, distribution or copying of the information contained in or transmitted with this e-mail is unauthorized and strictly prohibited. If you have received this email in error, please notify the sender by replying to this message and permanently delete this e-mail, its attachments, and any copies of it immediately. This message is intended only for the addressee. If you are not the intended recipient, please notify the sender by e-mail reply and delete this message. You may not copy, disclose, distribute or otherwise make use of this message or its contents for yourself or for any other person, as that action may be unlawful. You should not retain, copy or use this e- mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person. All data is reported from Bloomberg or SNL unless otherwise indicated.
PAGE 6