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Essential IR Insights Newsletter - February 2023

Hilton names CEO, CFO for planned REIT; Red Rock prices IPO

Commercial real estate

* HiltonWorldwide Holdings Inc. poached RLJ Lodging Trust's co-founder, Thomas Baltimore Jr., toserve as the president and CEO of its plannedhotel REIT, according to a news release. The company also namedSean Dell'Orto as CFO of the entity, which is expected to come into being laterin 2016.

Concurrently, Hilton reportedfirst-quarter net income attributable to its stockholders of $309 million, or31 cents per share, compared to $150 million, or 15 cents per share, in theprior-year period. The company also affirmed its 2016 full-year EPS guidance.

* Federal RealtyInvestment Trust amendedits credit agreement with a group of lenders to boost its unsecured revolvingcredit facility to $800.0 million from $600.0 million, among other changes.

The facility contains an accordion feature that allows thecompany to expand the borrowing capacity to as much as $1.5 billion, accordingto a filing.

* FranklinStreet Properties Corp. saidit plans to redevelop the existing 801 Marquette Ave. building in downtownMinneapolis instead of razing it to build a 50-story .

* Russian property magnate is teaming up withItalian fashion house Missoni for his $350 million luxury condominium projectin Miami, The Wall Street Journal reported.The billionaire's U.S. property company, OKO Group, is seeking to launch threehigh-end condo projects in the city with an investment of $1 billion, accordingto the report.

* The Mall ofAmerica in Bloomington, Minn., has landed Seattle-basedsupercomputing firm Cray as its first office tenant, the StarTribune reported.Cray will move to The Offices @ MOA by the first half of 2017.

Developers Triple Five Group of Cos. and Ryan Cos. hadproposed a $500 million expansion at the mall last year, as previously reported.

* The New York Timescarried a reporton the data center segment's expansion in the Dallas-Fort Worth region ofTexas. The region ranks fourth in the U.S. in terms of square footage volumefor multitenant data centers, according to 451 Research.

* The Journal lookedat the waning influence of asset managers over the REIT industry, which isattracting a broader investor base. Robert Steers, CEO of Cohen & SteersInc., said the declining influence of asset managers is an outcome of theindustry's maturity.

* Lone Star Funds raised $5.9 billion for its Lone Star RealEstate Fund V, which will invest in the debt and equity of commercial propertyassets in the Americas, Europe and Asia Pacific, Reuters reported.

After the bell

* Red RockResorts Inc. pricedits IPO of 27,250,000shares of class A common stock at $19.50 apiece.

Red Rock expects its shares to start trading on the NasdaqStock Market under the ticker RRR April 27. The company, formerly known asStation Casinos, operates 19 local casinos in Las Vegas.

* Two REITs linked to Nick Schorsch's AR Global aremulling a plan topurchase five nontraded REITs also linked to the firm in a consolidation playthat would bring more assets under long-term advisory agreements with Schorsch'sfirm, Investment News reported.

* BrixmorProperty Group Inc. appointedAngela Aman as CFO. Aman was previously executive vice president, CFO andtreasurer at Retail Properties ofAmerica Inc.

* Crown CastleInternational Corp. pricedits public offering of 3.400% senior notes due 2021 and 3.700% senior notes due2026, in aggregate principal amounts of $250 million and $750 million,respectively.

* BostonProperties Inc. updatedits full-year 2016 guidance and offered second-quarter estimates whilereporting year-over-year increases in FFO during the first quarter.FFO attributable to the company's common shareholders came to about $250.7million, or $1.63 per share, compared to roughly $200.4 million, or $1.30 pershare, in the year-ago period.

* PublicStorage reportedyear-over-year gains in FFO and core FFO during the first quarter and raisedits regular common quarterly dividend.

First-quarter FFO allocable to common shares hit about$364.4 million, or $2.10 per share, up 19 cents, or 9.9%, on a per-share basisfrom roughly $331.1 million, or $1.91 per share, during the 2015 quarter.

* EquityResidential reporteda year-over-year decline in normalized FFO per share, tightened its full-year2016 normalized FFO guidance and issued new second-quarter guidance.For the first quarter, FFO came to $179.3 million, compared to $303.0 millionin the first quarter of 2015, the company said in a news release.

* Realty IncomeCorp. sawAFFO per share rise 4.5% year over year in the first quarter and maintained itsfull-year earnings guidance. FFO totaled $170.6million, or 68 cents per share, compared to $152.9 million, or 68 cents pershare, in the 2015 period, representing a year-over-year rise of 11.6% on anaggregate basis.

* CamdenProperty Trust solda portfolio of 15 communities in Las Vegas for $630 million.The portfolio was sold as part of the company's capital-recycling efforts.


* According to datafrom the Greater Boston Association of REALTORS, sales of detachedsingle-family homes in Greater Boston rose 12.5% to 773 in March from 687 homessold in March 2015. The figure marks the highest single-family home sales totalsince March 2012. Sales of condo also saw a 30% jump to 750 units from 577units in 2015.


* Massachusetts' gaming commission is expected to vote onMass Gaming & Entertainment's proposed casino and hotel complex inBrockton "laterin the week," The Boston Globe reported.A group of state legislators have called for the commission to reject the plan.

Other real estate news

* StarwoodHotels & Resorts Worldwide Inc. it is on track to expand itsportfolio to 100 hotels in the Middle East by 2020. Under new deals signed,more than 1,200 rooms will be added in the United Arab Emirates, Saudi Arabiaand Qatar.

The day ahead

U.S. markets are expected to start the day's trading on alower note as the Nasdaq composite index, the S&P 500 and the Dow JonesIndustrial Average were trading below fair value in early morning futurestrading.

In Asia, the Hang Seng dropped 0.21% to 21,361.60, and theNikkei 225 fell 0.36% to 17,290.49.

In Europe as of midday, the FTSE 100 was down 0.35% to6,262.51, while the Euronext 100 had climbed 0.29% to 890.20.

On the macro front

Mortgage applications decreased 4.1% from one week earlier,according to data from the Mortgage Bankers Association's Weekly MortgageApplications Survey for the week ending April 22. On an unadjusted basis, theindex fell 3% compared to the previous week.

The international trade in goods report, the pending homesales index, the EIA petroleum status report and the FOMC meeting announcementare due out today.

Now featured

Simon talksbig-picture strategy, GICS change: The executive told industryobservers on Simon Property Group's earnings call that the company is notweighing any transformational moves and is still effectively out of the bigdeal business.

David Simon onmall biz crisis: 'We don't see it': On an earnings call, SimonProperty's Chairman and CEO once again sought to discredit media reports aboutthe existential crisis facing the mall business.

AmericanCampus meeting with institutional investors on a large portfolio sale, execssay: The company hopes to direct the proceeds of a round of assetsales into new development, executives said in an April 26 earnings conferencecall.

The GuidanceReport: This roundup of recent guidance from real estate companiesincludes updates from American Campus Communities and QTS Realty.

The PropertyLedger: Liberty Property details Q1 activity; InnSuites nixes $14.8M deal tosell Calif. hotel: The April 26 edition of North American propertynews roundup also features asset sales by Consolidated-Tomoka and CondorHospitality.

The Daily Dose isupdated as of 7:30 a.m. ET. Some external links may require a subscription.Articles and links are correct as of publication time.