CIO of Hoya Capital; REIT Industry Expert and Author of The Daily REIT Beat Newsletter, a morning note covering the REIT sector. Huge Phish aficionado
Dallas, TX
Joined February 2019
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David Auerbach ⭕️ retweeted
Daily REITBeat - Late Edition
Equity REITs gained alongside a broader market rally, led by Billboard and Hotel REITs, while Treasury yields were mixed ahead of the Fed's rate decision on Wednesday.
🟢 S&P 500: +0.7%
🟢 Equity REITs: +0.5%
🔴 Housing Index: -0.6%
🛢️ Crude Oil: $101.54 (-1.7%)
U.S. Treasury Yields
🔴 2-Year: 4.71% (+3 bps)
🟢 10-Year: 4.98% (-1 bps)
🟢 30-Year: 5.30% (-2 bps)
#REITs @DailyREITBeat
Reading this story today brings back many fond memories for elementary school and high School AP Spanish me as Enterprise City was the best day of the year.
There was no place like it at the time and now Richardson Independent School District has transformed it times one hundred to build "BizTown" at the former Greenwood Hills Elementary School.
I'm sure all of my Bowie, Brentfield, Westwood, Parkhill, Pearce and Richardson High School friends and colleagues have many fond memories of Enterprise City like I do.
I always tried to be in City Hall but instead ran the printing shop as well as the snack stand but the coolest job anyone wanted was the Radio DJ.
@RichardsonISD
dallasnews.com/news/educatio…
David Auerbach ⭕️ retweeted
📊 REIT Earnings Quick Takes
Easterly Government (DEA) - which focuses almost exclusively on government-leased properties - rallied 2% today after reporting an in-line quarter, modestly raising its 2026 outlook, and introducing initial 2027 guidance that calls for modest earnings growth as higher refinancing costs and a planned tenant move-out offset otherwise steady portfolio fundamentals.
DEA raised the lower end of its 2026 Core FFO guidance to $3.08-$3.13/share, with the midpoint implying 3.8% growth, compared with roughly 3.7% previously. Q3 Core FFO of $0.78/share increased 2.6% year-over-year, while the portfolio remained 98% leased with a 9.2-year weighted-average lease term.
DEA also completed its 2026 rollover activity with a 15-year renewal at USCIS-Lincoln, including 10 years of firm term, while management continues to expect mid-to-high-teens net-effective rent spreads on upcoming 2027-2028 renewals.
Initial 2027 guidance of $3.09-$3.17 implies just 0.8% Core FFO growth at the midpoint, below DEA's longer-term 2%-3% target, reflecting the expected FAA-Chicago move-out and refinancing pressure from the Loma Linda maturity. Importantly, that outlook assumes only about $50M of acquisitions, leaving some potential upside if deployment accelerates.
On the call, it noted that the acquisition environment is beginning to look more interesting, as sellers are increasingly accepting that the 10-Year Treasury may remain in a 4%-5% range rather than quickly returning to 2%-3%, which is beginning to reset seller expectations. It maintains a $1.5B acquisition pipeline that could become increasingly actionable as pricing adjusts.
Balance-sheet progress also continued, with adjusted leverage declining to 6.8x from 7.1x last quarter, while DEA remains focused on securing an additional investment-grade credit rating.
Management noted that an inaugural investment-grade bond issuance could lower the cost of refinancing the Loma Linda maturity, providing potential earnings upside that is not included in current 2027 guidance.
@AllTheREITNews | @DailyREITBeat | @ReitAcademy | @bradthomas | #REITs #Dividends
@HoyaCapital Weekly #REIT Recap (A Long Thread...) October 19th - October 23rd, 2026
REITs Rebound As Earnings Deliver
U.S. markets remained unsettled as cracks emerged in the AI investment boom, while another oil-price surge complicated the inflation outlook ahead of Wednesday’s Fed decision.
Treasury yields fell for a third straight week as AI-related risk-off flows strengthened, with markets now assigning just 10% odds of an October hike despite still-elevated energy prices.
REITs rallied for a third-straight week as earnings opened on an encouraging note: 15 REITs raised full-year FFO guidance, reinforcing the view that fundamentals remain healthier than recent price action.
Office REITs delivered some of the strongest results, with improving leasing, rent spreads, and occupancy, while Crown Castle gained another potential growth catalyst from SpaceX’s reported terrestrial wireless ambitions.
Industrial and Net Lease results remained broadly constructive, while residential mREIT earnings were less severe than feared and Apartment results pointed to continued stabilization heading into 2027.
REITs are still pacing to underperform the S&P 500 for a fifth consecutive year, but the relative performance gap has narrowed as long-term interest rates pulled back from their recent highs. At 5.00%, the 10-Year Treasury Yield is now higher by 84 basis points on the year, while the 2-Year Treasury Yield is higher by 121 basis points at 4.68%, and the 30-Year Treasury Yield is higher by 48 basis points at 5.33%. The recent bond-market rally has also pared year-to-date losses across fixed-income categories, with long-term Treasuries now lower by 3.3%, mid-term Treasuries down 2.5%, investment-grade corporates down 2.4%, and residential MBS lower by just 1.0%. In commodities, Crude Oil remains the clear standout, now higher by 80.6% this year at roughly $104/barrel. Natural Gas is lower by 21.7%, Gold is down 7.5%, while the U.S. Dollar remains higher by 5.0%.
Economic Calendar In The Week Ahead
All eyes will be on the Federal Reserve's Interest Rate Decision in the week ahead, with the FOMC expected to leave rates unchanged following its 25-basis-point hike in September. Futures now assign just a 10% probability of another hike in October, down from 69% a month ago, as policymakers have signaled a willingness to move more deliberately despite hotter inflation and resilient economic activity. The bigger question will be what Chair Kevin Warsh signals about December, and with no updated economic projections at this meeting, the press conference will carry particular weight as investors look for guidance on whether the Fed still views the recent inflation acceleration as largely energy-driven, how much concern policymakers have about stronger underlying demand, and what would be required to justify another hike in December. A consequential slate of economic data flanks the Fed decision, highlighted by the PCE report on Thursday. The Fed's preferred inflation gauge, Headline PCE is expected to accelerate to 3.6% year-over-year from 3.4%, and Core PCE to 3.1% from 3.0%. We'll simultaneously see the first estimate of Q3 Gross Domestic Product, which is expected to show a robust 3.2% annualized growth rate after 2.2% in Q2. We'll see another slate of housing market data earlier in the week, with Case-Shiller Home Price data and New Home Sales on Tuesday expected to show a housing market still stuck in low gear following the renewed surge in mortgage rates. Housing and commercial real estate have arguably been the Fed's clearest transmission mechanism this cycle, with higher borrowing costs quickly constraining transaction volumes, development activity, and affordability even as other parts of the economy have remained comparatively resilient.
