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REIT Replay: Simon says jump


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REIT Replay: Simon says jump

REITs posted gains, while the broader markets remained in the red, Tuesday, Jan. 31, as Simon Property shares surged after the company posted its 2016 fourth-quarter and full-year results.

The MSCI US REIT Index (RMZ) and the SNL US REIT Equity Index rose 0.76% to end the day at 1,145.56 and 305.82, respectively. The Dow Jones Industrial Average, however, fell 0.54% to 19,864.09, while the S&P 500 lost 0.09% to close at 2,278.87.

On Tuesday, reports emerged that U.S. President Donald Trump began transferring 71 of his New York City real estate assets into the Donald J. Trump Revocable Trust. Meanwhile, Jared Kushner, Trump's son-in-law, reportedly unloaded his interest in the office and retail property at 666 5th Ave. in Manhattan, N.Y., for an undisclosed sum. The 39-story building is jointly owned by Kushner Cos. and Vornado Realty Trust.

Vornado shares slid 0.52% to end the day at $106.31.

SL Green Realty Corp. is looking to sell a stake in its Broadway 1515 property in Manhattan, N.Y., Crain's New York Business reported Monday, noting that the sale could fetch the company approximately $1 billion.

SL Green shares ticked down 0.06% to close at $108.97.

Responding to recent criticism by activist investor Land & Buildings Investment Management LLC, Forest City Realty Trust Inc. said Tuesday that it will vet and consider Land & Buildings' formal and informal board nominees in its hunt for two new independent directors.

Shares of Forest City popped up 1.62%, closing at $22.64.

Activist investor Wintergreen Advisers LLC on Tuesday lambasted Consolidated-Tomoka Land Co.'s dismissal of its claims about director nominations to the company's board, saying the move was an attempt to block Wintergreen's right to submit director nominees to the board.

Consolidated-Tomoka shares gained 0.73% to close at $55.00.

Simon Property Group Inc. reported its latest financial results Tuesday, and boosted its quarterly dividend, while GGP Inc., Alexandria Real Estate Equities Inc. and UDR Inc. reported their results after market close Monday.

Simon Property shares surged 3.39% to $183.77; GGP shares rose 3.67% to $24.84; Alexandria Real Estate shares declined 1.19% to $110.82; and UDR shares ticked up 0.87% to close at $34.95.

Crown Castle International Corp. on Monday priced a public offering of $500 million of 4.000% senior notes due 2027 for about $493 million in expected net proceeds.

Crown Castle shares rose 1.23% to close at $87.83.

Sotherly Hotels Inc. said Tuesday that it lifted its quarterly cash dividend 5.3% to 10 cents per common share.

Sotherly Hotels shares increased 1.01% to close at $6.97.

Global Healthcare REIT Inc. said Monday that Needle Rock Capital founder and CEO Adam Desmond joined the REIT's board of directors.

Shares of Global Healthcare REIT remained flat to close at 52 cents.

Janney Montgomery Scott LLC analyst Tyler Batory in a Monday note initiated coverage of Wyndham Worldwide Corp. with a rating of "neutral." According to the analyst, a more normalized domestic RevPAR environment and challenges to the company's exchange business are likely to weigh on its growth. The analyst also projected continued low growth for the company's timeshare segment.

Wyndham Worldwide shares fell 0.23%, closing at $79.06.

On the macro front, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index saw a 5.6% annual rise in November 2016, up from 5.5% in the previous month.

Earnings call coverage

David Simon's advice in 'dog-eat-dog' new normal: Spruce up your stores: On an earnings call, Simon Property's CEO attributed the company's performance in a cutthroat retail climate to its belief in its properties and its resulting willingness to invest in them.

New York, San Francisco apartment markets will struggle in '17, UDR execs say: Though rent growth remains weak, there are signs a turnaround could come in 2018, company executives maintained in a conference call.

GGP's Mathrani touts high occupancy despite retailer downsizing: Analysts on the company's year-end earnings call focused on drawing out more detail about the ongoing wave of retailer store closures and bankruptcies and the company's efforts to combat it.

Now featured on S&P Global Market Intelligence

REIT short interest rises in January 1st half: U.S. equity REITs saw average short interest increase by 6 basis points during the first half of January.

US homebuilder shorts decline in January 1st half: U.S. homebuilders saw average short interest fall 15 basis points to 6.87% of outstanding shares in the first half of January.

US gaming shorts see increase in January 1st half: Average U.S. gaming short interest rose 26 basis points to 4.35% of shares outstanding during the first half of January.

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