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REIT Replay: Primed for stimulus

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REIT Replay: Primed for stimulus

REITs traded down and the broader markets edged higher Thursday,July 14, amid hints of stimulus measures from the Bank of England in August.

The MSCI US REIT Index (RMZ) fell 0.85% to 1,245.08, and theSNL US REIT Equity Index dropped 0.70% to finish at 332.86. The Dow Jones IndustrialAverage traded up 0.73% to close at 18,506.41, while the S&P 500 added 0.53%to end the day at 2,163.75.

Hilton WorldwideHoldings Inc. announced after market close Wednesday that it a former Manning & NapierInc. executive to serve as CFO of its timeshare business, which it plans to later in 2016.

James Mikolaichik will assume the CFO post at Hilton Grand Vacations,effective in August.

Hilton shares ticked up 0.38% to $23.71.

Public Storagesaid after markets closed Wednesday that it looks to raise $300 million in grossproceeds from a public offeringof 12.0 million depositary shares.

The depositary shares, priced at $25.00 apiece, each represent0.001 of a 4.95% series D cumulative preferred share of beneficial interest. Theoffering should be finalized on or about July 20.

Public Storage shares lost 0.93% to $254.07.

Medical PropertiesTrust Inc. disclosed Wednesday that a $500 million senior note offeringby MPT Operating Partnership LP and MPT Finance Corp. priced with a 5.250% coupon.

The bulk of the net proceeds from the offering, set to close on or about July 22, will go towardthe full redemption of $450 million of 6.875% senior notes due 2021.

Shares of Medical Properties fell 1.38% to $15.04.

The mergerof Apple Hospitality REIT Inc.and Apple REIT Ten Inc.will be up for shareholder votesat separate meetings slated for Aug. 31, according to a Wednesday filing.

The $1.3 billion dealis expected to be completed in the third quarter.

Apple Hospitality REIT shares edged up 0.10% to $19.72.

In property news, DiamondRockHospitality Co. announced Thursday that it finalized the saleof Hilton Garden Inn Chelsea/New York City in Manhattan, N.Y., and Hilton Minneapolisin Minneapolis.

The Manhattan hotel sold for $65 million, and the Minneapolisasset went for roughly $143 million.

DiamondRock shares dropped 0.11% to $9.28.

Carey WatermarkInvestors 2 Inc. acquiredthe 510-room San Jose Marriott hotel, billed as a top-performing asset in California'sSilicon Valley market, for $154 million.

The company said Thursday that it funded the transaction with$88 million of senior debt.

On the macro front, the U.S. hotel industry experienced year-over-yeardeclines in RevPAR and occupancy for the week ended July 9, dropping 5.2% to $81.59 and 6.4% to 67.4%, respectively,based on STR data. ADR, meanwhile, ticked up 1.3% to $121.11 during the period.

Now featured:

Data Dispatch:REIT M&A activity hot in H1'16: Aggregate deal value for the fiveannounced deals totaled $25.61 billion, the largest amount seen in a first halfsince 2007.

The Property Ledger:Industrial Property picks up 30 assets in Q2; Education Realty starts Texas on-campushousing project: The July 14 edition of North American property newsroundup also features development projects by DCT Industrial and CyrusOne.

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