The broader markets saw gains Monday, Dec. 11, amid expectations that the Federal Reserve will hike interest rates at its forthcoming meetings. Real estate investment trusts, meanwhile, closed mixed as GGP and Brookfield Property are back at the bargaining table after the former rejected the latter's initial buyout offer.
The MSCI US REIT Index (RMZ) fell 0.09% to 1,160.94 and the SNL US REIT Equity Index gained 0.07% to 319.04. The Dow Jones Industrial Average rose 0.23% to 24,386.03, while the S&P 500 gained 0.32% to end the day at 2,659.99.
Brookfield Property Partners LP's initial buyout offer of $23 per share was allegedly turned down by GGP Inc., as the latter's special board committee deemed the bid to be inadequate. The parties, however, are continuing their negotiations, according to Reuters, citing people familiar with the matter.
Brookfield Property shares dipped 1.34% to close at $21.32, and GGP shares slid 0.17% to close at $23.39.
Simon Property Group Inc.'s operating partnership wrapped up its $1.35 billion offering of two series of senior notes, with the net proceeds earmarked primarily for the proposed optional redemption of $750 million of certain notes due February 2018.
Simon shares inched up 0.01%, closing at $162.26.
VICI Properties Inc. upsized its private placement of common stock to $1.0 billion. The company will use part of the proceeds to help fund its $1.14 billion deal to acquire and lease back the land and related improvements related to the Harrah's Las Vegas Hotel and Casino from a Caesars Entertainment Corp. affiliate.
Shares of VICI Properties ticked up 0.05% to $19.81.
Sunstone Hotel Investors Inc. is paying a fourth-quarter cash dividend of 58 cents per share, which equates to an annual yield of 4.4%. The payout will be made Jan. 16, 2018.
Sunstone Hotel shares declined 0.36% to close at $16.65.
All State Properties Holdings named Maurice Parham to replace Joseph Passalaqua as its new CEO and as a board member, will change its name to Universal Nation Inc. and will conduct an 80-1 reverse split of its outstanding shares. The moves are part of a common stock purchase agreement with Parham.
First Real Estate Investment Trust of New Jersey CEO, Chairman and trustee Robert Hekemian Sr. is stepping down, effective after the company's 2018 annual shareholder meeting slated for April 2018. Robert Hekemian Jr. will be the new CEO, while Ronald Artinian will be the new chairman.
Carter Validus Mission Critical REIT Inc. received a cash tender offer of up to 9,325,000 shares of its common stock at $8.00 apiece from Everest REIT Investors I LLC and Everest REIT Investors II LLC.
In macro news, JLL's seventh annual technology outlook predicts the technology industry will remain the biggest consumer of office space across the U.S., with 2017 leasing volume from growing tech companies expected to top 2015 and 2016 levels.
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Market prices and index values are current as of the time of publication and are subject to change.
