Russia invaded Ukraine, there is evidence that China is actively preparing to invade Taiwan, and yesterday North Korea launched its largest intercontinental ballistic missile (ICBM) for “testing purposes”?

I am going to go out on a limb here and say that tensions are pretty high.

The White House issued a statement but has made no decisions regarding consequences for this violation of the U.N. Security Council resolution. Reuters wrote:

“This launch is a brazen violation of multiple U.N. Security Council resolutions and needlessly raises tensions and risks destabilising the security situation in the region,” White House press secretary Jen Psaki said in a statement condemning the launch. “The door has not closed on diplomacy, but Pyongyang must immediately cease its destabilising actions.”

According to a New York Times headline, President Biden is currently in Europe to Rally Allies as Ukraine Battles Russian Forces. Hopefully, he will have time to address the nation about this recent violation on the part of North Korea.

Hirokazu Matsuno, Japan’s Chief Cabinet Secretary, reported:

“the missile was launched east toward the sea. He said it landed at 3:44 p.m. local time (2:44 a.m. ET) about 90 miles west of Oshima Peninsula on northern Hokkaido Island, within Japan’s exclusive economic zone.”

This is deeply troubling given all that is going on in Ukraine.

More Non-REIT News

Closer to home, the US is planning to take in 100,000 Ukrainian refugees as well as “provide more than $1 billion in new humanitarian aid, the White House announced” according to USA Today.

It is incredibly sad to see so many lives displaced.

More details will be released soon as Biden continues to meet with our European allies.

The World According to REITs

Although not directly correlated (aside from providing a place to stay), I’m writing on hotel REITs today.

Hotel REITs may be one of the riskiest REIT sectors during recessions, but they are also among the most opportunistic categories coming out of a global pandemic. As I pointed out earlier this year when I wrote my “REIT Roadtrip” article,

“The hotel industry’s EBITDA growth in 2022 will depend on how much of a “pent -up demand” factor there can be for business travel, but high inflation should be a material positive for the industry’s top line.”

I added that “the key issue for 2022 will be the timing of a recovery in business travel demand. That recovery should drive both large Group demand and Business Transient demand.”

We’re watching that recovery unfold right before our eyes, and thus far, we have been encouraged by picks like Braemar Hotels & Resorts (BHR) + 19% YTD and Apple Hospitality (APLE) +13% YTD. In other REIT news:

Today Morningstar upgraded Prologis (PLD) to Hold from Sell (raised price target by $12 to $143)

Also, PS Business (PSB) announced that Dan “Mac” Chandler, III, the Company’s President/CEO, who has been on medical leave since January 17, 2022, will step down as President/CEO and as a member of the Board of Directors for health reasons, effective March 23, 2022, and Stephen W. Wilson, who was appointed interim President /CEO on January 17, 2022, will continue to serve in that role, and will continue to be supported by the Company’s senior management tea

Yesterday, Moody’s assigned Federal Realty (FRT) a “Baa2” preferred shelf rating and affirmed its OP LP’s ratings including its senior unsecured debt rating at “Baa1” with a stable outlook

And Fitch Ratings upgraded (EPR Properties) EPR’s ratings, including its Long-Term issuing Default Rating, to “BBB-“ from “BB+” with a stable outlook

That’s what we’ve got today, at least for here.

(Click on image to enlarge)

(Source: Daily REITBeat)