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REIT Replay: Mile higher

REITs and the broader markets gained ground Tuesday, Jan. 24, as certain Milestone Apartments REIT shareholders called on Starwood Capital Group to increase its takeover offer for the REIT.

The MSCI US REIT Index (RMZ) ticked up 0.03% to 1,165.96 and the SNL US REIT Equity Index rose 0.11% to 310.55. The Dow Jones Industrial Average gained 0.57% to 19,912.71, while the S&P 500 increased 0.66% to close at 2,280.07.

According to a Tuesday report by Bloomberg News, certain Milestone Apartments REIT shareholders urged Starwood Capital Group to increase its roughly US$1.3 billion cash takeover offer for the REIT.

Milestone Apartments REIT shares slid 0.19% to end the day at C$21.49.

Prologis Inc. reported Tuesday core funds from operations of about $344.8 million for the fourth quarter of 2016, down from $345.8 million a year ago. The company said it expects full-year 2017 core FFO in a range of $2.60 to $2.70 per share.

Prologis shares fell 1.89%, closing at $51.83.

Equity LifeStyle Properties Inc. said Monday that it expects its first-quarter funds from operations and normalized FFO in a range of 95 cents to $1.01 per common share.

Shares of Equity LifeStyle rose 0.41%, closing at $75.29.

Cerberus Capital Management LP said Tuesday that it raised $1.8 billion for its Cerberus Institutional Real Estate Partners IV LP fund, which is focused on distressed or undervalued property deals worldwide, with an emphasis on the U.S. and Western Europe.

NorthWest Healthcare Properties REIT said Monday that it aims to raise gross proceeds of approximately C$75 million via a bought-deal offering of 7,430,000 trust units. The offering is expected to be completed by Jan. 31 and carries a 30-day overallotment option for the underwriters to acquire up to 1,114,500 additional units.

NorthWest Healthcare shares slumped 2.87% to close at C$10.15.

UDR Inc. on Monday announced an unsecured commercial paper program in the U.S. under which it may issue up to $500 million of notes from time to time.

UDR shares ticked down 0.64% to close at $35.82.

In property news, Dream Office REIT said Tuesday that it is selling a 12-property portfolio in Alberta to a third party for some C$200 million in gross proceeds, in a transaction expected to close in the first quarter.

Dream Office REIT shares declined 1.13%, closing at C$19.26.

Education Realty Trust Inc. said Tuesday that it broke ground on a $164.9 million mixed-use joint venture development project adjacent to Arizona State University in Tempe. The community, set to be completed in summer 2018, will offer 407 residential units and 31,000 square feet of retail space.

Education Realty Trust shares went up 0.09% to close at $42.61.

In personnel news, Kristin Sabia joined Corporate Property Associates 18 - Global Inc. as its new chief accounting officer, effective Jan. 18, succeeding ToniAnn Sanzone.

TIER REIT Inc. appointed Kent Griffin an independent director, expanding the board's size to seven members. The company said Monday that Charles Dannis will not seek re-election as a director at its 2017 annual shareholder meeting.

Shares of TIER REIT increased 0.83% to close at $18.32.

On the macro front, law firm Baker McKenzie forecast that global IPO activity will increase to $167 billion in 2017 from $133 billion in 2016.

The results of a 2016 survey of U.S. hotel lenders by STR, Hotel News Now and RobertDouglas indicated a cautious 2017 outlook for the hotel lending landscape, with none of the participating lenders seeing a substantial rise in hotel values in the next 12 months.

The National Association of Realtors reported that existing-home sales in the U.S. in 2016 totaled 5.45 million, exceeding the 2015 total of 5.25 million, and marking the highest figure since 6.48 million sales in 2006.

Now featured on S&P Global Market Intelligence

The Property Ledger: NIH expands lease at Alexandria campus in Md.; Equity One sells Fla. property: The Jan. 24 edition of the North American property news roundup also features Pro REIT's deal to buy a 50% stake in a Quebec industrial property.

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