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REIT Replay: Tax break

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REIT Replay: Tax break

Real estate investment trusts closed lower, while the broader markets broke a two-day losing streak as Wall Street digested the implications of the tax bill awaiting President Donald Trump's signature.

The MSCI US REIT Index (RMZ) slid 0.36% to close at 1,138.53, and the SNL US REIT Equity Index declined 0.31%, closing at 312.63. The Dow Jones Industrial Average gained 0.23% to close at 24,782.29, while the S&P 500 put on 0.20% to end the day at 2,684.57.

In keeping with its plan to expand into Europe, CyrusOne Inc. acquired hyperscale data center provider Zenium Data Centers from Quantum Strategic Partners Ltd., which is managed by Soros Fund Management LLC, and other sellers for $442 million.

Zenium has two data centers each in London and Frankfurt, Germany, and together, the four properties will aggregate 260,000 square feet of colocation space and 49.3 MW of power. Approximately 54%, or 26.8 MW, of the power capacity is already leased.

Shares of CyrusOne rose 0.44% to close at $57.66.

Ventas Inc. teamed up with private equity firm Fremont Realty Capital in a pair of transactions aimed at raising growth capital for senior housing operator Atria Senior Living Inc.

Atria management sold 50% of their 66% ownership stake in the company to Fremont, and Ventas, which owns 34% of Atria, made an additional investment in order to maintain its ownership at the current level.

Shares of Ventas fell 1.40%, ending at $59.84.

A Blackstone Real Estate Income Trust Inc. subsidiary agreed to acquire a portfolio of 146 industrial properties for $1.8 billion. The assets are in Chicago; Dallas; Baltimore/Washington, D.C.; Los Angeles/Inland Empire, Calif.; South/Central Florida; New Jersey; and Denver and are 90% leased to 377 tenants.

Blackstone Real Estate Income's parent, Blackstone Group LP, acquired three apartment buildings in the South Lake Union area of Seattle for $325 million, the Puget Sound Business Journal reported, citing public records.

The properties — One LakeFront, Westlake Steps and Marina SLU — were sold by Japan-based Sekisui House Ltd., according to the publication.

Citing poor leadership, the chief investment officer of activist investor Snow Park Capital Partners LP said his firm would nominate "highly qualified" candidates for election to Altisource Residential Corp.'s board of directors.

Snow Park did not name the nominees, but argued that decisions in the boardroom have led to Altisource trading at a significant discount to its book value of $14.03 per share.

Shares of Altisource jumped 3.74%, closing at $11.94.

Douglas Emmett Inc. acquired a Beverly Hills, Calif., office building for $143.6 million. The class-A property spans 146,300 square feet and is located at 9401 Wilshire Blvd. Douglas Emmett financed the acquisition with cash and operating partnership units and by assuming a $32.3 million amortizing loan.

Douglas Emmet shares slid 0.54% to close at $40.20.

Now featured on S&P Global Market Intelligence:

Tax reform presents opportunities, challenges to US REITs: The REIT tax code was left mostly intact, as were 1031 like-kind exchanges, so for REITs, most observers expect business as usual.

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