REITs and the broader markets bounced back Tuesday, April 12, as Brixmor announced thatit has finally filled the permanent CEO post more than two months since an accountingscandal prompted its top brass to exit the company.
The MSCI US REIT Index (RMZ) tacked on 0.74% to 1,155.46, andthe SNL US REIT Equity Index picked up 0.08% to finish at 306.24. The Dow JonesIndustrial Average gained 0.94% to close at 17,721.25,while the S&P 500 added 0.97% to end the day at 2,061.72.
Brixmor PropertyGroup Inc. is bringingin Jim Taylor, the CFO and treasurer of Federal Realty Investment Trust, to be its new CEO and president.
Taylor will step down at Federal Realty, effective May 19, andwill take the corner office at Brixmor, starting May 20, according to separate statementsissued April 12. The news about the appointment gave the New York-based shoppingcenter REIT's stock a boostat midday.
Brixmor had previously tapped Daniel Hurwitz to serve as itspresident and CEO on an interim basis after an internal audit found that led to theimmediate resignations of some of the company's senior leaders. Hurwitz will continueto serve on the company's board.
Brixmor shares jumped 2.30% to $25.77 on April 12, while FederalRealty shares inched up 0.08% to $156.03.
In major property transactions, Rexford Industrial Realty Inc. announced after market closeApril 11 that it is acquiringa private REIT that owns a portfolio of nine industrial assets in four of the company'score infill markets in Southern California in an estimated $191.0 million deal.
The company plans to partially fund the transaction using proceedsfrom the exercise of an accordion feature on its $125.0 million unsecured term loan. Rexford also kicked offan offering of 9.0 million common shares, with a 30-day purchase option for 1,350,000additional shares granted to the underwriters. Priced at $17.65 per share, the offering is expected to yieldnet proceeds of $152.2 million, part of which will also be used to finance the acquisition.
The industrial assets in the portfolio are spread across OrangeCounty, Los Angeles-San Gabriel Valley, Inland Empire West and Central San Diego,with a total area of 1,530,814 net rentable square feet.
Rexford shares edged forward 0.22% to $18.05 on Tuesday.
Meanwhile, a trio of interconnected buildings in Manhattan, N.Y.,jointly owned by SL Green Realty Corp.and Jeff Sutton are reportedly onthe market for sale either in full or separately.
Eastdil Secured has been hired to market the three-building propertyat 530-536 Broadway in SoHo, which could fetch roughly $450 million if sold in itsentirety, according to an April 11 report in The Real Deal.
SL Green shares gained 1.28% on April 12 to $99.10.
In recent funding rounds, Spirit Realty Capital Inc. launched an upsized public of 30.0 million common sharesand granted the underwriters an option to buy 4.5 million more shares.
The company, after market close April 11, said it will issuethe shares at a priceto the public of $11.15 apiece for estimated net proceeds of $320.7 million. Thenet proceeds from the offering, set to close April 15, will be used to trim amountsoutstanding under the company's $370.0 million term loan facility.
Spirit Realty shares dropped 0.70% on Tuesday to $11.38.
In shareholder news, Putnam Investments and Luxor Capital Partners,which own respective stakes of 14.9% and 7.6% in Altisource Residential Corp. expressed for the single-family REIT's management,which is in the middle of a dispute with activist investors, according to an April12 report by Bloomberg News.
The dispute stems from a shareholder group's move to three independent directorsfor election to Altisource Residential's board in an attempt to gain control ofthe company. The shareholder group, which questioned the company's direct-assetacquisition strategy, reiteratedits concerns in a lettermade public April 12.
Altisource PortfolioSolutions SA, from which Altisource Residential was , in a filing after market closeApril 11 reported a 5.0%stake in the REIT and said that it will vote its shares in favor of the REIT's slateof board nominees.
Altisource Residential shares added 1.22% to $11.59 on April12.
On the macro front, CoreLogic Inc. reported April 12 that U.S.foreclosure inventory fell23.9% year over year in February, and completed foreclosures came to just 34,000during the month, down 10% from 38,000 a year ago.
The February level marks a 71.3% decline in completed foreclosuresfrom the September 2010 peak of 117,776, according to the report.
Data Dispatch:US equity REITs' Q1 capital raising activity down 38.4% YOY: Publiclytraded U.S. equity REITs had raised $13.59 billion via capital offerings throughMarch 31, 38.4% less than the $22.03 billion raised during the same period in 2015.
Data Dispatch:As fight with founder rages, data paints a mixed picture at PulteGroup:While PulteGroup founder William Pulte demands the immediate removal of Chairmanand CEO Richard Dugas Jr., arguing the company has dramatically underperformed itspeers under his leadership, SNL data indicates the situation at the homebuilderis not quite as dire as Pulte asserts.
Real Estate Rundown:Nontraded REIT sales dry up in Q1: With the industry undergoing significantchange, the top-sponsors list after the first quarter looked very different thanthe 2015 rankings, with a new leader in place.
Real Estate Rundown:Investors find something to like in Ashford Prime's muted strategic-review news:Though the roughly eight-month review yielded no major transaction and analystswere lukewarm on the results, Ashford Prime share prices have risen in recent days.
Brixmor sharesget boost with new CEO in place: The search for a permanent CEO replacementfollowing the accounting discrepancy that came to light in February was expectedto take longer.
Market prices and indexvalues are current as of the time of publication and are subject to change.