Recent podcast drops
The Net Lease Observer Podcast continues to deliver engaging conversations with executives from across net lease and finance. Recently released episodes include:
June 9th: Sumit Roy, President & CEO of Realty Income (NYSE: O)
Podcast: Sumit Roy of Realty Income
June 16th: Michael Batnick, Managing Partner of Ritholtz (co-host of the Animal Spirits and Compound & Friends podcasts; Author of the Irrelevant Investor blog)
Podcast: Michael Batnick of Ritholtz
June 25th: Glenn Rufrano, Chairman of PREIT, former CEO of New Plan Excel, Centro Properties, Cushman & Wakefield, and VEREIT
Podcast: Evergreen principles with Glenn Rufrano
Search “Net Lease Observer” on Apple podcasts, Spotify, or Podbean:
Net Lease Observer | Apple Podcasts
Net Lease Observer | Spotify
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Index inclusion
S&P Dow Jones Indices announced net lease-focused NETSTREIT (NYSE: NTST) will replace ProAssurance (NYSE: PRA) in the S&P SmallCap 600 index effective Monday, June 29th.
NETSTREIT joins seven other single tenant REITs as an index constituent: Broadstone; Essential Properties; Four Corners; Global Net Lease; Getty; Innovative Industrial; and Safehold.
Net lease REITs also hold two spots in the S&P 500 index and six spots in the S&P 400 MidCap index.
NTST has generated a year-to-date total return of 18.1% and sports a $2.0 billion equity market capitalization.
Middle child syndrome
Although the 10-year bond and Fed Funds interest rates get all the attention, the middle of the yield curve has experienced significantly more action since January 1st.
Source: Y-Charts
The 2-, 3-, and 5-year U.S. treasury rates are up 64, 60, and 44 basis points year-to-date yet no one seems to mention.
Splitting services
Service Properties Trust (NASDAQ: SVC), the service-focused retail net lease and hotel REIT, announced a 5-for-1 reverse split of its common equity shares. SVC shares closed on Thursday at $1.70 - implying a post-reverse-split price of $8.50.
The SVC share price has fallen 79%, 29%, and 8% over the trailing 3 years, 1 year, and year-to-date period, respectively. Reverse splits have no impact on existing shareholders equity value or ownership percentage.
Deal Sheet
-Agricultural sciences firm FMC Corporation (NYSE: FMC) announced a definitive agreement (subject to a 120-day base due diligence period) to sell its Newark, Delaware property in a partial sale/leaseback to affiliates of Broadstone Net Lease (NYSE: BNL) for $114.1 million. Lease details were not disclosed, however FMC will leaseback a portion of the property while another other portion is under lease to tenant Corteva Agriscience. FMC will use sale proceeds to reduce debt. FMC's Stine Research Center, its global R&D headquarters, will continue to operate at the site following the transaction.
-Safehold (NYSE: SAFE) announced the closing of two ground lease transactions to support housing developments. First, a $45 million deal underlying the development of a 256-unit affordable housing community in Santa Cruz, California targeted for 2028 delivery. Second, an undisclosed price for a property underlying the development of a 336-unit affordable housing community in northeast Austin, TX also targeted for 2028 delivery.
-VICI Properties (NYSE: VICI) completed the previously announced acquisition of the real estate assets of Deerfoot Inn & Casino and Great Northern Casino (with two adjacent limited-service hotels) in Alberta, Canada for $144.4 million.
-NNN REIT (NYSE: NNN) exercised a $200 million incremental term loan option to increase the February-2029 maturing senior unsecured term loan facility to $500 million. The REIT entered into a $100 million forward starting swap that effectively fixed SOFR at 3.43% through maturity. Additionally, the company’s credit facility pricing grid was improved, lowering the SOFR-based margin on its term loan and revolving credit facility borrowings by 5 basis points each.
-Sean Hostert