Real estate investment trusts extended their gains and the broader markets posted mixed results Wednesday, Dec. 13, as the Federal Reserve raised its benchmark interest rate for the third time in 2017 and signaled more increases to come in 2018.
The MSCI US REIT Index (RMZ) rose 0.15% to 1,168.31, and the SNL US REIT Equity Index gained 0.17% to close at 320.86. The Dow Jones Industrial Average added 0.33%, closing at 24,585.43, while the S&P 500 closed 0.05% lower at 2,662.85.
Vornado Realty Trust is said to be in discussions to shed its stake in an Indian real estate joint venture to its partner The Chatterjee Group, with a deal potentially "worth several hundred million dollars" likely to be finalized soon, Livemint reported.
Vornado shares fell 0.37% to end the day at $77.42.
Equinix Inc. said Tuesday that it obtained a roughly US$3.0 billion credit facility and closed its €1.0 billion offering of 2.875% senior notes due 2026.
Shares of Equinix rose 0.24% to close at $451.28.
Iron Mountain Inc. priced an $825 million private debt offering and a $536.5 million underwritten public offering of common shares to help fund its acquisition of IO Data Centers' operations in the U.S., according to separate Tuesday releases.
Iron Mountain shares surged 1.43% to close at $38.34.
Cedar Realty Trust Inc. priced its public offering of 2.0 million shares of 6.50% series C cumulative redeemable preferred stock for approximately $50.0 million in gross proceeds. The company said it expects to close the offering Dec. 15.
Cedar Realty shares declined 0.49%, closing at $6.08.
Normandy Real Estate Partners obtained a $170 million mortgage loan from SL Green Realty Corp. to fund its acquisition and redevelopment of ABC Carpet & Home's headquarters in New York City, The Real Deal reported.
Shares of SL Green gave up 0.12% to close at $102.90.
Realty Income Corp.'s board declared a monthly cash dividend of 21.25 cents per share, up from the company's prior payout of 21.2 cents per share, according to a Tuesday release.
Shares of Realty Income added 2.03%, closing at $56.87.
American Hotel Income Properties REIT LP said that CEO Rob O'Neill lifted his ownership in the company by acquiring 164,000 units in the open market and requested to take his entire compensation for 2018 in the form of equity.
American Hotel Income shares lifted 1.87% to close at C$9.24.
BMO Capital Markets Corp. analyst R. Jeremy Metz upgraded Taubman Centers Inc. to "market perform" from "underperform" and lifted the per-share target price on the company's stock to $60.00 from $48.00.
In a Tuesday note, Metz said the upgrade comes amid expectations that the slew of M&A activity, activist involvement and speculation in the mall sector will keep shares elevated off recent lows in the near term, despite a challenging fundamental backdrop and lingering investor concerns about governance.
Taubman shares closed 1.60% higher at $63.59.
Caddis Partners CEO Jason Signor said the company secured $130 million of equity commitments at the close of its first real estate investment fund, which aims to invest up to $300 million per annum for five years in U.S. medical office buildings, the Dallas Business Journal reported Tuesday.
Harbert Management Corp. said Tuesday that its latest U.S. real estate fund, which targets real estate assets with value-add potential across major U.S. markets, raised approximately $428.5 million in the final close of its funding round, marking the company's largest real estate fund closing to date.
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Data Dispatch: US REIT capital raising up 28% YOY through Nov. 30: Chart Watch: Publicly traded U.S. real estate investment trusts completed 13 capital offerings during the second half of November to raise $4.57 billion.
Data Dispatch: Fewer banks are concentrated in CRE as loan growth slows to late 2013 levels: As commercial real estate loan growth slows after a boom in 2015 and 2016, fewer banks are concentrated in CRE loans.
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