In the U.S.:
- April CPI increased 0.3% versus March’s 0.4% increase. The muted inflation reading suggested the Federal Reserve could keep interest rates unchanged for a while.
- In earnings, 450 companies in the S&P 500 Index have reported, 75.9% beat, 0.2% were in-line, and 23.9% missed estimates.
Equinix (EQIX) stated on its earnings call that they plan to open 12 new International Business Exchange (IBX) data centers and expand 23 existing IBX data centers in 2019. The plan is part of an expected $1.73 to $1.92B non-recurring capital expenditure expansion program.
In REIT earnings, 85 companies in the Wilshire U.S. REIT Index have reported, 59 beat, 1 were in-line, and 25 missed estimates.
- Following a tumultuous week of trade talks, the US ended up raising the tariff rate an additional 15% on $200B of Chinese imports. China has vowed to respond with “necessary countermeasures” of their own, while trade talks resume in Washington.
- April flash manufacturing PMI rose to 50.2 versus March’s 49.2 reading, which marked the first time in three months that the reading has been above 50. The positive manufacturing PMI data was somewhat offset by a disappointing services PMI reading, which dropped to 51.8 versus March’s 52.0 reading.
The Australian Financial Review reported that Vicinity Retail Partnership and Commonwealth Bank Group Super were selling the A$650.0 million Midland Gate shopping center in Perth, Australia. The 68,600 sq. m. center has recently underwent a A$100.0 million redevelopment and expansion.
- March German exports unexpectedly rebounded by 1.5% versus February’s 1.3% drop. The better than expected data helped buoy some of the recent weakness in the manufacturing data.
- UK preliminary Q1 GDP growth ticked up 0.5% q/q versus Q4’s 0.2% q/q increase. Economists warned to take the positive data with a grain of salt as it is widely thought that the boost is due to firms stockpiling as risks of a no-deal Brexit grow.
German residential property company LEG Immobilien reported 1Q19 results this week with FFO of €1.34/sh., an increase of +14.4% YOY. Like-for-like rental growth for the period was +3.1% for the period, +3.9% in its free financed units. Management gave guidance that it expects an ≈ 5% valuation uplift with the mid-year reappraisal of its portfolio. Management also provided an update on its strategy outlook and indicated that potential growth opportunities outside of its current core market of North Rhine Westphalia is being considered. Additionally, as a part of its strategy review, it is considering an expansion of its development activities. Finally, the company confirmed its guidance for FY 19 for FFO 1 of €338 mn – €344 mn and for FY20 of €356 mn – €364 mn. It also confirmed like-for-like guidance of +3.0% – +3.2% for FY19 and +3.2% – +3.4% for FY20.
The views expressed in this update are as of the date of this blog entry. These views and any portfolio holdings discussed in the update are subject to change at any time based on market or other conditions. The adviser disclaims any duty to update these views, which may not be relied upon as investment advice. In addition, references to specific companies’ securities should not be regarded as investment recommendations or indicative of the Adelante products, strategies, or portfolios.