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REIT Replay: Going for a DDRive

Real estate investment trusts and the broader markets notched gains Friday, Dec. 15, as DDR Corp. said it intends to spin off 50 of its assets into a separate publicly traded REIT.

The MSCI US REIT Index (RMZ) gained 0.61% to 1,174.24. The Dow Jones Industrial Average rose 0.58%, closing at 24,651, and the S&P 500 closed 0.90% higher at 2,675.81.

DDR Corp. said it intends to spin off 38 of its continental U.S. assets and its entire 12-asset Puerto Rico portfolio into a separate publicly traded REIT, with the transaction likely to be finalized in the summer of 2018.

DDR shares ballooned 11.31% to end the day at $8.86.

Colony NorthStar Inc. will develop a €1 billion Dublin project comprising four office buildings, a hotel, stores and homes in a joint venture with Irish developer Johnny Ronan, Bloomberg Markets reported.

Shares of Colony NorthStar declined 0.75%, closing at $11.99.

Harvard Management Co. Inc. will spin out its real estate investment team to private equity firm Bain Capital LP, effective Feb. 1, 2018. Bain Capital's new real estate business will comprise about 20 professionals managing Harvard Management's real estate investments.

BGC Partners Inc. and commercial real estate services firm Newmark Group Inc. priced an IPO of 20 million shares of Newmark's class A common stock at $14.00 per share. The IPO should close Dec. 19.

First Industrial Realty Trust Inc. said it plans to offer a two-tranche private placement of $300 million of fixed-rate senior unsecured notes, with closing expected by Feb. 15, 2018.

First Industrial Realty shares fell 0.25% to close at $32.14.

SmartCentres REIT plans to issue C$500 million of two series of senior unsecured debentures. The company expects the offering to close on or about Dec. 21 and aims to use the proceeds for debt repayment and general trust purposes.

SmartCentres REIT shares rose 0.65% to close at C$31.17.

Hyatt Hotels Corp.'s board authorized the company to repurchase up to $750 million of additional common shares.

Shares of Hyatt Hotels gained 1.28% to close at $71.25.

RLJ Lodging Trust sold the 383-room Fairmont-Boston-Copley Plaza in Boston for $170.0 million.

RLJ Lodging shares added 1.99%, closing at $22.06.

Innovative Industrial Properties Inc., MGM Growth Properties, CT Real Estate Investment Trust and CubeSmart announced increases to their respective dividends, while Host Hotels & Resorts Inc. declared a special dividend.

Innovative Industrial shares spiked 9.73% to $24.80; MGM Growth shares fell 0.27% to $29.02; CT REIT shares increased 0.61% to C$14.74; CubeSmart shares added 0.51% to $29.39; and Host Hotels shares edged up 1.82%, closing at $20.14.

Mizuho Securities USA LLC's Haendel St. Juste initiated coverage of Invitation Homes Inc. at "buy" with a per-share price target on the company's stock of $27.00.

The analyst noted that with a "well-positioned" portfolio, Invitation Homes will benefit from macro and company-specific tailwinds, including favorable demand, growth and value that is expected to drive outperformance in 2018.

Invitation Homes shares rose 1.43% to close at $24.10.

Slate Office REIT said Al Mawani resigned from the board of trustees to focus on his other recent board appointments and nonprofit sector engagements.

Slate Office REIT shares closed 0.37% higher at C$8.13.

On the macro front, Real Capital Analytics forecast that the total U.S. deal activity for 2017 is likely to be lower year over year, despite the flurry of deals in the fourth quarter. According to the report, some $100 billion worth of deals need to take place in December alone for 2017 to match the volume seen in 2016.

Now featured on S&P Global Market Intelligence

The Week in US Real Estate: Unibail-Rodamco to enter US market; Brookfield Property's GGP bid hits bump: The Dec. 15 weekly news roundup in the North American real estate space also features restructuring moves; market trends; and more updates on the capital market, dividend and property fronts.

Analysts cheer Unibail-Rodamco's Westfield deal, expect boost to US prime malls: The proposed $15.7 billion takeover of the Australia-based mall owner by its Paris-based compatriot is winning applause from some analysts, who expect the deal to provide a read on the value of U.S. A-malls.

Commercial real estate a likely 'winner' in tax reform, experts say: Republican legislators are still negotiating the details of a final version of the tax reform bill, but based on available information, tax experts say commercial real estate will be left unscathed and will benefit in key ways.

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