REITs and the broader markets lost more ground Tuesday, April 5, as investors moved with cautionthanks to uncertainty about the global economic picture.
The MSCI US REIT Index (RMZ) slid 0.60% to close at 1,148.24,and the SNL US REIT Equity Index declined 0.64%, closing at 305.71. The Dow JonesIndustrial Average dropped 0.75% to close at 17,603.32, while the S&P 500 fell1.01% to end the day at 2,045.17.
Essex Property TrustInc.'s Essex Portfolio LP launched an offering of $450 million aggregate principal amount of seniorunsecured notes due April 15, 2026.
The notes were pricedat 99.386% of par value, with a 3.448% yield to maturity.
The company said after market close April 4 that Essex Portfoliowill use part of the net proceeds to repay indebtedness under its unsecured lineof credit facilities. The offering, pending certain closing conditions, is set tobe completed April 11.
Essex shares slid 0.83% to close at $231.86.
Acadia Realty Trust,meanwhile, priced a publicoffering of 3.6 millionshares of beneficial interest on a forward basis, with estimated gross proceedsof $124.9 million.
The company said April 5 that it will use the net proceeds aspartial funding for its current property acquisitions, which range from street andurban portfolios to retail assets. It expects the offering to close on or aboutApril 8, pending customary conditions.
Acadia Realty shares fell 3.24% to $34.09.
In property news, LexingtonRealty Trust advancedits portfolio repositioning strategy with roughly $58.2 million in assets sold duringthe first quarter.
The divested properties included a specialty/retail asset inTomball, Texas, and a pair of suburban office assets in Palm Beach Gardens, Fla.,and Harrisburg, Pa., the company said after markets closed April 4.
In a release, President and CEO T. Wilson Eglin said the sales"highlight successful execution of our portfolio repositioning strategy, furtherreducing our short-term office, multitenant and specialty/retail exposure,"while "fully stabilizing the suburban office assets."
Lexington shares ticked 0.24% lower to close at $8.45.
In Canada, InterRentReal Estate Investment Trust is poised to buy Parkway Park Apartments in Ottawa, Ontario, in a C$55.7million transaction set to close in May.
The company added after market close April 4 that it agreed tosell certain of its assets in Brantford, Ontario, in an estimated C$11.5 milliondeal targeted for a July closing.
InterRent shares dropped 1.99% to close at C$7.40.
A pair of Jefferies analysts lowered their investment opinionof National Storage Affiliates Trustto "hold" from "buy," while maintaining their price target onthe company's stock at $21.
George Hoglund and Omotayo Okusanya said in an April 5 note thatthey believe National Storage's stock is now "more appropriately" valuedand aligns more with their price target, thanks to the company's recent stock outperformance.The analysts noted that the company's stock has risen 23% year-to-date and 62% fromits IPO price in April2015, beating out its peers.
While remaining "bullish" on the company's fundamentaloutlook, the pair argued that National Storage's share price is likely reflectedin the near-term outlook, resulting in their ratings downgrade.
National Storage shares lost 4.70% to close at $20.08.
On the macro front, CoreLogic reported April 5 that U.S. homeprices, including distressed sales, in February were up 6.8% year over year and 1.1% month over month based onits latest home price index reading.
All states experienced year-over-year increases, with gains greaterthan 10% seen in Colorado, Florida and Washington for the year, according to thereport.
Data Dispatch:Sun Communities boosts California, Ontario exposure in Carefree Communities deal:Sun Communities' acquisition of Carefree Communities will also further solidifythe company's position in Florida, giving it an aggregate of 42,940 manufacturedhome and recreational vehicle sites.
Data Dispatch:62 North American real estate companies increase dividends YTD in 2016:Year-to-date through March 31, 62 North American real estate companies announceddividend increases, with Altisource Residential announcing the largest increaseduring the period.
Data Dispatch:With recent mall sales, PREIT looks to shed B mall standing: S&PGlobal Market Intelligence takes a look at the company's recent mall sales, thetail-end of its years-long portfolio repositioning.
Q&A: Value-addmall marketplace short on buyers, weak on financing, PREIT CEO says:S&P Global Market Intelligence caught up with Joseph Coradino after the company'slatest batch of mall sales to talk about the challenges of its ongoing portfoliorepositioning.
Market prices and indexvalues are current as of the time of publication and are subject to change.