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REIT Replay: In the fast lane


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REIT Replay: In the fast lane

REITs declined, and broader markets rose Thursday, Dec. 15, a day after the Federal Reserve raised interest rates and indicated further increases would occur at a more aggressive clip than anticipated.

The MSCI US REIT Index (RMZ) fell 0.64% to 1,114.00, and the SNL US REIT Equity Index decreased 0.67% to 298.14. The Dow Jones Industrial Average rose 0.30% to 19,852.24, while the S&P 500 gained 0.39% to end the day at 2,262.03.

Responding to shareholder pressure, Consolidated-Tomoka Land Co. revealed after market close Dec. 14 that it received buyout offers from two publicly traded real estate companies during its recent strategic review. The company's special committee for the strategic review determined the all-stock offers did not sufficiently value the company and opted to continue with the company's current business plan.

Shares of Consolidated-Tomoka fell 2.31% to $52.75.

Host Hotels & Resorts Inc. announced a special dividend of 5 cents per share to be paid with its regular quarterly dividend of 20 cents per share. Shareholders of record as of Dec. 30 will receive the payout Jan. 17, 2017.

Shares of Host gained 0.26% to close at $18.92.

Red Lion Hotels Corp. priced an underwritten public offering of 2,250,000 shares of common stock at $8.00 per share. The company expects to put the net proceeds of $16.9 million toward general corporate purposes, which could include acquisitions. Underwriters have a 30-day overallotment option to acquire an additional 249,999 shares.

Red Lion shares plunged 10.99% to settle at $8.10.

Duke Realty Corp.'s executive chairman, Dennis Oklak, is leaving his position, effective Jan. 6, 2017, but will stay on as a director and chairman. He stepped down as the company's CEO in 2015.

Duke Realty shares slipped 0.66%, closing at $25.67.

EPR Properties closed a $450 million offering of 4.750% senior notes due 2026 on Wednesday. The notes are payable semiannually beginning in 2017.

EPR Properties shares lost 0.32% to end the day at $69.03.

NorthWest Healthcare Properties REIT closed a public offering of C$70 million of convertible subordinated debentures. The company plans to use the proceeds, plus other resources, to repay approximately C$70 million of Brazilian term loans maturing Dec. 21 and to finance the acquisition of a C$19.1 million medical office building in Hamburg, Germany, among other uses.

Shares of NorthWest Healthcare added 2.47% to close at C$9.97.

In macro news, homebuilder confidence surged in December to the highest level it has seen since July 2005, with the National Association of Home Builders/Wells Fargo Housing Market Index for newly built single-family homes rising 7 points to 70.

U.S. hotels enjoyed gains in three key performance metrics in the week ended Dec. 10, according to STR. Revenue per available room rose 5.7% to $71.08, while the average daily rate gained 3.9% to hit $120.12, and occupancy ticked 1.7% higher to 59.2%.

Now featured on S&P Global Market Intelligence:

The Short Report: REIT short interest down in November 2nd half: Short interest among U.S. equity REITs fell 20 basis points on average to 3.20% of outstanding shares during the second half of November.

The Short Report: November 2nd half sees decline in homebuilder short interest: D.R. Horton saw the biggest short-interest gain, while LGI Homes was the most shorted homebuilding stock during the second half of November.

The Short Report: Gaming short interest dips in November 2nd half: Eldorado Resorts saw the biggest short-interest gain and was also the most-shorted gaming stock during the second half of November.

Hires and Fires: Real Estate moves through Dec. 14, North America edition: This feature presents a weekly rundown of recent significant management and board changes and personnel moves in the North American real estate industry, including U.S. REITs and REOCs, homebuilders and gaming operators.

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