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REIT Replay: This way to the egress

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Six trends shaping the industries and sectors we cover in 2021

Six trends shaping the industries and sectors we cover in 2021

Capital Markets View – January 2021


REIT Replay: This way to the egress

TheS&P 500 rose to a record high on Monday, July 11, and REIT indexes climbedeven more sharply, on day marked by the departures of two prominent CEOs.

TheMSCI US REIT Index (RMZ) rose 0.69% to 1,249.92, and the SNL US REIT Equityrose 0.64% to 333.60. The Dow Jones Industrial Average rose 0.44% to 18,226.93,and the S&P 500 rose 0.34% to 2,137.16.

David Oakes, its presidentand CEO, and said real estate veteran Thomas August will replace him.

Oakesalso served as interim CFO, and is being replaced, also on an interim basis, bychief accounting officer Christa Vesy.

August,a 40-year veteran of the real estate industry, is the chairman of and aDDR board member He previously served as president and CEO of Equity OfficeProperty Trust, which is now controlled by Blackstone Group LP.

DDRCorp. shares rose 2.94% to $19.23.

AtHCP Inc., meanwhile,President and CEO Lauralee Martin leftthe company and was replaced on an interim basis by Executive Chairman MichaelMcKee.

Martinalso stepped down from the company's board. HCP expects to record athird-quarter severance charge related to her departure of roughly 3 cents pershare.

Theprocess of appointing a permanent CEO is expected to take between three and sixmonths.

In anews release, McKee said the timing for the change was related to thecompletion of the company's strategic portfolio review in May and theannouncement of its planned skilled-nursing spinoff transaction.

Thetransition was announced after the market's close.

Earlier,HCP shares rose 1.67% to $36.54.

will pay a second-quarter dividendof 1 cent per share — its first such payment since the company suspended itsdividend in March 2009.

Theredemption of the company's series A and series B preferred stock, combinedwith the declaration and payment of dividends through June 30 on its series Dpreferred stock, enabled the board to approve the resumption of common stockdividends, CEO Bill Blackham said.

Thedividend will be payable Aug. 3 to shareholders of record as of July 22.

CondorHospitality Trust shares jumped 10.61% to $1.98.

ProgressResidential plans to prepay the $465.9 million loan that serves as collateralfor its single-family rental securitization known as Progress 2014-SFR1securitization, making the deal the first in its asset class to pay off in full.

Thecompany plans to fund the prepayment with part of the proceeds from a newsecuritization, known as Progress 2016-SFR1, which is expected to close inAugust.

KrollBond Rating Agency said the 2014 transaction has performed as expected from acredit perspective and experienced deleveraging because of the priceappreciation of the underlying houses

Atthe time of securitization, the 2014 portfolio was comprised of 3,140properties, Kroll said. Of those, 2,762 are expected to be contributed to thenew securitization, accounting for 67.9% of that transaction's collateralproperties. Over the next 12 months, 13 loans backing single-family rentalsecuritizations have impending initial maturity dates, and the related sponsorswill have to decide whether to extend them or refinance, Kroll said.

initiated an underwritten public offeringof preferred stock.

Thedividend yield and other terms of the offering of series C cumulativeredeemable preferred stock have not been determined.

Thecompany plans to list the preferred stock on the NYSE MKT under the symbolBRG-PrC. Net proceeds will likely go toward future multifamily acquisitions andinvestments, among other uses.

BluerockResidential shares rose 0.46% to $13.05.

BTIGLLC hired researchanalysts James Sullivan, Michael Gorman and Tom Catherwood from Cowen to expandits REIT coverage.

Sullivanand Gorman join as managing directors, and Catherwood joins as a director.Sullivan covers all property types, Gorman covers the health care, triple net,strip center and regional mall subsectors, and Catherwood covers office andindustrial.

Now featured

: Year-over-year, common equityraised was down 43.9% at $11.19 billion, compared to $19.96 billion raisedduring the first half of 2015.

Data Dispatch:A jump from year-end discount — US REITs trade at a premium to NAV of 8.4%:The "other" retail sector had the greatest premium to NAV, while theoffice sector had the greatest discount to NAV.

: Two initiations, three downgrades and anupgrade are included in a roundup of recent analyst actions, three of whichinvolved homebuilders.

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