REITdaily Morning Call: March 13, 2015

Markets

S&P futures are down -0.1%, and the 10-year is unchanged at 2.1%.

 

Economic Indicators

From the WSJ: “The producer-price index for final demand, which measures prices that businesses receive for their goods and services, declined a seasonally adjusted 0.5% last month from January, the Labor Department said Friday. Excluding the volatile food and energy categories, the index fell 0.5%. Economists surveyed by The Wall Street Journal had expected prices would increase 0.3% and so-called core prices would rise 0.1%.”

Mich Consumer Sentiment will be reported later today. Consensus expectations are 95.8.

 

Company News

Patrick Whitesell resigned from the board of Hudson Pacific Properties (HPP). Following the resignation, the board voted to reduce the size of the board to eight, from nine. In an 8-k, the company stated that the resignation was not due to any disagreements.

Public Storage (PSA) and WP Glimcher (WPG) both redeemed a series of their preferreds yesterday. PSA is redeeming it’s Series O preferreds at their $25 par value for a total of $145 million. Most of PSA’s other preferreds are trading in the high-5% range, so it makes sense to repurchase the Os and refinance at today’s lower rates.  WPG redeemed its Series G preferreds, which was legacy preferreds from Glimcher and yielded 8.125%.

 

Industry News

Washington D.C., continues to expand it’s Metro system. Public hearings are underway for a new station at Potomac Yards in Alexandria. Camden Property Trust (CPT), UDR Inc. (UDR), and Equity Residential (EQR) all own an apartment building near the proposed station.

A mall in Murfreesboro was sold to a private equity firm, Sterling Organiztion, for $42 million for a 75% interest. At 594,688 square feet, the price represents just $94 per square foot.

A new high-end residential tower is being built  across from Independence Hall in Philadelphia. Scannapieco Development Corp officially broke ground yesterday. The 26-story building will have 38 condos, which vary in price from $2.5 million, up to $17.5 million for the penthouse.