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REIT Replay: Trading big

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REIT Replay: Trading big

Real estate investment trusts continued to gain ground, and the broader markets closed in the red Thursday, Oct. 12, as several real estate companies announced big property deals in key U.S. markets.

The MSCI US REIT Index (RMZ) rose 0.52% to 1,173.37, and the SNL US REIT Equity Index gained 0.58% to close at 319.42. The Dow Jones Industrial Average fell 0.14%, closing at 22,841.01, while the S&P 500 closed 0.17% lower at 2,550.93.

A joint venture between Columbia Property Trust Inc. and Allianz Real Estate paid $421 million to acquire a Washington, D.C., office asset.

Columbia Property said in a separate Wednesday release that it bought two New York City office buildings from New York REIT for $514 million.

Columbia Property shares rose 3.06% to $21.91 and New York REIT shares ticked up 0.39% to close the day at $7.80.

L&L Holding Co. and an undisclosed domestic pension fund set up a joint venture to spend $4 billion on property deals in New York City, The Real Deal reported Wednesday.

CoreCivic Inc. priced a $250.0 million offering of senior unsecured notes due 2027, according to a Wednesday release.

Shares of CoreCivic fell 0.08%, closing at $25.96.

Innovative Industrial Properties Inc. said Wednesday that it priced a $15.0 million preferred stock offering, with closing scheduled for Oct. 19.

Innovative Industrial shares declined 0.37% to close at $19.09.

Weyerhaeuser Co. said Thursday that it redeemed its 21% ownership interest in the Twin Creeks Timber LLC joint venture for $107.5 million in cash and agreed to sell 100,000 acres of timberlands to the joint venture for $202.5 million.

Weyerhaeuser shares gained 0.58% to close at $34.59.

Vornado Realty Trust sold the Corporate Pointe 800 office building in Culver City, Calif., to Northwood Investors for $148 million, according to a Wednesday release.

Vornado shares increased 0.26%, closing at $79.57.

True North Commercial REIT said Wednesday that it agreed to acquire five Canadian office properties for approximately C$106.1 million. The company also announced an upsized bought-deal offering of trust units to raise about C$35 million in gross proceeds.

Shares of True North Commercial closed 3.06% lower at C$6.33.

TH Real Estate completed the sale of the 31-story building at 685 3rd Ave. in Midtown Manhattan, N.Y., to Japan's UNIZO Holdings Co. for $467.5 million, according to a Thursday release.

Oak Street Real Estate Capital LLC closed its value-added Oak Street Real Estate Capital Fund IV at $1.25 billion, exceeding its $750 million target, PERE News reported Wednesday.

Duke Realty Corp.'s operating partnership amended its $1.2 billion unsecured revolving credit facility to extend the maturity to January 2022 from January 2019, according to a Wednesday release.

Shares of Duke Realty added 0.41% to close at $29.05.

On the macro front, STR data showed that U.S. hotels recorded positive performance for the week ended Oct. 7, with revenue per available room, average daily rate and occupancy growing year over year.

The number of third-quarter U.S. foreclosure filings dropped 35% on a yearly basis to hit the lowest level since the second quarter of 2006, according to ATTOM Data Solutions' "Q3 2017 U.S. Foreclosure Market Report."

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Data Dispatch: Manufactured-home REITs expected to report greatest FFO growth in Q3: Chart Watch: Manufactured-home real estate investment trusts are forecast to top their second-quarter funds from operations per share by a median of 10.99% when they report third-quarter earnings.

Executive changes prompt investor questions at Welltower: The company, the largest healthcare real estate investment trust by market capitalization, is pursuing a lawsuit against its former chief investment officer and recently announced the departure of its CFO.

Conference Chatter: Embracing tech 'a matter of life or death' for real estate owners, developers: Real estate leaders debated the changes startup culture and data-driven innovation likely will bring to the industry, and pondered the potential consequences of not embracing them, at a conference in New York City this week.

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