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REIT Replay: HOT or not

REITs closed out the week with decent gains, as the almostyear-long saga ofMarriott's acquisition of Starwood finally came to a close Friday, Sept. 23.The broader markets, meanwhile, lost a bit of ground.

The MSCI US REIT Index (RMZ) rose 0.21% to 1,222.32, and theSNL US REIT Equity Index climbed 0.24% to finish at 326.50. The Dow JonesIndustrial Average dipped 0.71% to close at 18,261.45, while the S&P 500fell 0.57% to end the day at 2,164.69.

Just days after revealing that it received antitrustclearance from theChinese Ministry of Commerce, Marriott International Inc. announced Friday that itfinalized itsbuyout of The combination creates what the company said is the world'sbiggest hotel conglomerate, with more than 5,700 properties and 1.1 millionrooms in about 110 countries.

Effective the same day, Marriott also named Chairman, President and CEO Bruce Duncan and two former Starwood directors toits board, which now comprises 14 members.

Marriott shares slipped 1.88% to close at $68.44, and FirstIndustrial shares edged 0.28% higher to $28.68.

W. P. CareyInc. announced after markets closed Thursday that CFO Hisham Kaderis resigning,effective Oct. 14, and will be replaced by Chief Accounting Officer ToniAnnSanzone in the interim. Sanzone will also become CFO of W. P. Carey affiliatesCorporate Property Associates 17- Global Inc. and Corporate Property Assoc. 18 Global Inc. followingKader's departure.

Separately, the company's board the per-share quarterly cashdividend to 98.5 cents, which will be paid Oct. 14 to stockholders of record asof Oct. 3.

W. P. Carey shares shed 0.13%, closing at $67.07.

On the property front, Columbia Property Trust Inc. announced Friday that itoffloaded a370,485-square-foot, three-building office complex in Englewood, Colo., as partof its 2016 noncore asset sales target of up to $1 billion. The transactiongenerated $122 million in gross proceeds, which the company will use to repayborrowings on its unsecured credit facility.

Columbia Property shares dipped 1.00% to close at $22.83.

Washington RealEstate Investment Trust after market close Thursday said itwrapped up thesale of its officeportfolio in suburban Maryland, raking in $128.5 million in total proceeds fromthe second part of the two-tranche transaction.

The deal was structured in a reverse-1031 exchange inconjunction with the acquisition of a 1,222-unit apartment community inAlexandria, Va.

Washington REIT shares gained 0.64% to close at $31.53.

In financing news, Cominar Real Estate Investment Trust its bought-deal unitoffering, generatingroughly C$192 million in net proceeds. The company said Friday it will use thenet proceeds in part to pay down debt outstanding under its credit facility.

Cominar shares ticked down 0.83%, closing at C$15.52.

In a Friday note, Compass Point Research & Trading LLCanalyst Steve Shaw launched coverage of NexPoint Residential Trust Inc. with a "buy"rating and a per-share price target on the company's stock of $24.

Thanks to NexPoint's redevelopment-focused growth strategy,the company's stock has had a 29% run since June 14, suggesting theunderfollowed apartment REIT is beginning to make a mark in the street, Shawsaid, adding that the stock has room for more upside. Shaw also posited thatthe company's portfolio will be well cushioned from the possible risk ofoversupply in the Sun Belt markets "as its garden style assets target adifferent demographic than most new supply coming online."

NexPoint Residential shares jumped 4.51%, ending the day at$20.87.

STR's weekly lodging data showed that hotels in the U.S.saw year-over-yeargains in three key performance metrics for the week ended Sept. 17. Compared tothe previous year, RevPAR rose 4.3% to $93.13, ADR was up 4.1% to $129.37 andoccupancy inched up 0.2% to end the week at 72.0%.

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The Week in USReal Estate: Green light, red light; on the move: The Sept. 23weekly news roundup in the North American real estate space features the end ofa long and complicated M&A saga and several upper level managementshake-ups.

Best of SNL:Real Estate, most read: The 10 most read real estate articles forthe week ending Sept. 23.

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Market prices andindex values are current as of the time of publication and are subject tochange.