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REIT Replay: Trimming the fat

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REIT Replay: Trimming the fat

Real estate investment trusts gained a little ground and the broader markets closed down slightly Dec. 22, ahead of the long holiday weekend. A couple of REITs closed significant property sales, with one exiting the Miami market altogether. In macro news, President Donald Trump signed the tax reform bill and a short-term funding measure that will keep the government running through Jan. 19, 2018.

The MSCI US REIT Index (RMZ) added 0.66% to finish the day at 1,146.06, and the SNL US REIT Equity Index added 0.63%, closing at 314.59. The Dow Jones Industrial Average slipped 0.11% to close at 24,754.06, while the S&P 500 gave up 0.05% to close at 2,683.34.

Forest City Realty Trust Inc. closed the sale of its stake in South Bay Galleria regional mall in Redondo Beach, Calif., to QIC the second closing in the REIT's 10-mall deal with QIC.

The QIC deal values the 10 properties together at about $3.18 billion, with Forest City's share amounting to about $1.55 billion.

The REIT expects to close on the sale of four additional malls in early 2018.

Forest City shares closed Dec. 22 up 0.34%, at $23.92.

Cousins Properties Inc. closed on the sale of a 1 million-square-foot office portfolio in Orlando, Fla., and exited Miami with the sale of its 20% stake in a joint venture asset in the city.

The Orlando portfolio deal was valued at $208.1 million, and its stake in the 343,000-square-foot Courvoisier Centre in Miami was valued at $33.9 million, including Cousins' share of joint venture debt. The deals bring the REIT's gross proceeds from property dispositions in 2017 to roughly $558 million.

Cousins shares rose 0.33% to close Friday at $9.19.

Blackstone Group LP completed its acquisition of Banco de Sabadell SA's Spanish hospitality business, including 3,700 rooms across 14 primarily coastal hotels, for roughly €630.7 million.

Halley Bidco SLU, an entity controlled by funds advised by The Blackstone Group International Partners LLP, is now the owner of the hotel management platform of Banco de Sabadell subsidiary Hotel Investment Partners SL.

Nuveen Global Cities REIT Inc. filed a registration statement for a best-efforts offering of up to $5.0 billion of common stock.

The company plans to qualify as a REIT and invest in stabilized, income-oriented real estate around the world and across asset types, as well as in debt backed by these assets. The majority of the assets will be in the U.S., the company said.

Nuveen, which is externally managed by its adviser TH Real Estate Global Cities Advisors LLC, will offer to sell four classes of common stock with different upfront selling commissions, dealer manager fees and stockholder-servicing fees.

EPR Properties redeemed in full its outstanding 6.625% series F cumulative redeemable preferred shares at a redemption price of $25.299045 per share, or about $126.5 million in the aggregate.

EPR Properties gained 1.66%, closing Dec. 22 at $64.16.

Now featured on S&P Global Market Intelligence:

The Week In US Real Estate: The Dec. 22 weekly news roundup in the North American real estate space also features a slew of large property transactions and more updates on market trends and investment strategies.

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