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REIT Replay: Brexit-resistant

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REIT Replay: Brexit-resistant

The broader markets were mixed Tuesday, July 19, while REITsheld steady, as Prologis'top exec projected minimal Brexit impact during the company's second-quarter earningscall.

The MSCI US REIT Index (RMZ) rose 0.51% to 1,254.48, and theSNL US REIT Equity Index ticked up 0.48% to finish at 335.16. The Dow Jones IndustrialAverage added 0.14% to close at 18,559.01, while the S&P 500 lost 0.14% to endthe day at 2,163.78.

Prologis Inc.posted year-over-yeargains in second-quarter core FFO and narrowed its core FFO guidance for the fullyear.

In a Tuesday release, Chairman and CEO Hamid Moghadam attributedthe gains in part to "all-time low vacancy rates," as demand in the U.S.and Europe continues to exceed supply. Moghadam also said on a same-day earningscall that he is bullishabout the company's European operations and that the impact of Brexit has been "minimal"so far.

"Our U.K. customers serve mostly domestic consumers andwe believe the decision to leave the EU will not materially change the buying habitsof 65 million people," the executive said.

Prologis shares posted a 0.17% gain to close at $51.71.

Presidential RealtyCorp. is proposing to buyout virtually all of FirstCapital Real Estate Trust Inc.'s assets in exchange for newly issuedshares. The proposed transaction remains subject to board and shareholder approvals,among other conditions.

"This transaction further advances our liquidity plan forthe shareholders of FCRETI. This plan was outlined in our strategic partnershipwith Forum Partners earlier this year," First Capital CEO Suneet Singal saidin a release.

In board moves, AvalonBayCommunities Inc. after market close Monday said that Richard Lieb, aveteran i-banker, will joinits board, effective Sept. 13. Lieb also sitson the board of CBL & AssociatesProperties Inc.

AvalonBay shares added 0.59% to finish at $184.24.

In property news, BluerockResidential Growth REIT Inc. acquiredvia a joint venture a leasehold interest in the 336-unit Tenside Apartment Homesin Atlanta for roughly $74.5 million.

The company invested about $22 million for a 90% stake in theproperty, with the remaining 10% stake picked up by an affiliate of the CarrollOrganization.

Bluerock Residential shares ticked up 0.68%, ending the day at$13.35.

WPT IndustrialReal Estate Investment Trust wrappedup its bought-deal offeringof 5,429,900 units and a concurrent private placement of 1,357,475 units for grossproceeds of roughly $60 million and about $15 million, respectively.

The net proceeds will go toward funding future acquisitions ofindustrial assets in major U.S. distribution and logistics markets and a developmentproject in Indianapolis.

WPT Industrial shares edged 0.73% higher to $11.03.

On the macro front, the U.S. Census Bureau and the U.S. Departmentof Housing and Urban Development reported that housing starts for privately ownedunits in the U.S. totaled 1,189,000 in June, representing a 4.8% from the previous month and a 2.0%drop from year-ago levels.

Now featured on S&PGlobal Market Intelligence:

Data Dispatch:94 North American real estate companies increase dividends YTD in 2016:SNL-covered real estate companies in the specialty category continued to lead individend increases through July 15.

Research Roundup:Tuesday, North American real estate edition: A handful of downgradesand initiations are featured in this roundup of recent research reports.

The Property Ledger:Corrections Corp. wins Calif. prison facility contract; DCT Industrial buys Dallasdevelopment sites: The July 19 North American property news roundupalso features Preferred Apartment's shopping center acquisitions across three states.

Prologis CEO 'confident'in EU business, sees 'minimal' impact from Brexit: On an earnings call,executives acknowledged that news out of Europe will continue to generate marketvolatility, but they expect robust leasing to continue to drive results.

Market prices and indexvalues are current as of the time of publication and are subject to change.