REITs and the broader markets continued their downward trendin the fourth quarter, losing ground for the second time in a row Tuesday, Oct. 4.
The MSCI US REIT Index (RMZ) fell 1.43% to 1,156.78, and theSNL US REIT Equity Index slipped 1.51% to 309.88. The Dow Jones IndustrialAverage gave up 0.47% to close at 18,168.45, while the S&P 500 lost 0.50%to end the day at 2,150.49.
Following through on its recently disclosed , WW Investors LLC hasformally sought tobecome the new manager of NewYork REIT during its proposed liquidation, or on an ongoing basis if no liquidationplan is implemented.
On behalf of its affiliate Winthrop Realty Partners LP, theactivist investor said Tuesday that its management proposal will include theappointment of formerVornado Realty Trustexecutive Wendy Silverstein as CEO of New York REIT. It touted the proposal ashaving the potential to save the REIT more than $50 million in liquidationcosts and $4 million in annual operating costs, compared to the currentadvisory agreement.
New York REIT shares shed 0.33% to close at $9.06.
Wireless telecom company SBA Communications Corp. on Monday unveiled plans toconvert to a REIT.The proposal has been approved by the company's board.
"We believe REIT status is the optimal structure forour business given the real estate nature of our assets," SBA Presidentand CEO Jeffrey Stoops said in a release, adding that the REIT conversionshould give the company plenty of opportunities to create long-term shareholdervalue.
In financing news, as part of its proposed , 's Quality Care Properties Inc.priced a $750 milliondebt offering and signed a $1.0 billion first-lien term loan.
The net proceeds will go toward the cash portion of theconsideration for properties and assets that the skilled nursing unit willreceive from HCP before the spinoff, which is expected to close during thefourth quarter.
HCP shares fell 2.05% to close at $36.84.
Realty IncomeCorp. disclosed in a Tuesday filing that it will an undisclosed amount of its notesdue 2027, with the goal of using the net proceeds primarily to repay borrowingsoutstanding under its $2.0 billion revolving credit facility.
Realty Income shares dipped 2.58%, closing at $63.69.
As part of a portfolio management strategy, CarValInvestors-managed funds launched a private sale of their 3,743,846 units in for expectedgross proceeds of about C$36.8 million. The units make up a roughly 13.4% stakein Agellan, and the investment funds will no longer own a stake in the companyonce the transaction closes on or about Oct. 5.
Agellan Commercial shares edged 1.07% lower to close atC$10.18.
On the property front, Liberty Property Trust after market close Monday said itfinalized thedivestment of 108properties and about 26.7 acres of land in a $969 million portfolio deal withWorkspace Property Trust and Safanad Ltd., bringing Liberty's total sales todate for 2016 to $1.2 billion.
Liberty shares slipped 1.46%, closing at $39.10.
PureIndustrial Real Estate Trust also announced after markets closedMonday that it agreed to buy income-producing properties in Alberta for roughlyC$171.1 million and in the southeastern U.S. for about US$81.0 million. It alsobroke ground on the fourth phase of its industrial park development project inVancouver.
The company plans to finance the acquisitions and developmentproject in part with the proceeds from a newly launched bought-deal trust unitoffering with projected gross proceeds of roughly C$125 million.
The Alberta properties are being sold by ,which was reported in late September to be considering the sale of C$300 million of its retail andindustrial properties in the province. Artis separately said Tuesday that it signeda C$40.2 million deal to offload its 112,324-square-foot retail propertyin Calgary. The company did not disclose the buyer.
Pure Industrial shares dropped 4.33% to C$5.30, and Artisshares declined 1.30% to close at C$12.14.
In macro news, Reis Inc. reported that completed newapartment units in the U.S. during the third quarter totaled 37,744, whileabsorbed units came to 37,693. The latest results show the continued trend ofnew construction outpacing net absorption, albeit by a smaller marginthan expected.
CoreLogic's latest home price index shows U.S. home prices,including distressed sales, jumped6.2% year over year in August and 1.1% month over month. Oregon and Washingtonexperienced the biggest year-over-year gains in home prices, rising 10.3% and10.2%, respectively.
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Data Dispatch:US REITs trade at a slim premium to NAV at Q3-end: The"other" retail sector, comprising single-tenant and outlet centerREITs, among others, traded at the largest premium to NAV, at 30.3%.
Data Dispatch:ChartWatch: Exit, opportunity in Moody National REITs' merger: Thecombination of the two nontraded hotel REITs, both sponsored by the MoodyNational Cos., would bring together two entities with shared leadership, amongother similarities.
Market prices andindex values are current as of the time of publication and are subject tochange.