In the U.S.:
- Q1 GDP came in at a strong 3.2% versus Q4’s 2.2% reading. The report highlighted positive impacts from private inventory investment and foreign trade. Analysts noted some likely drag on consumption from five-week government shutdown, and suggested that the boost from inventory accumulation and exports could reverse for Q2.
- In earnings, 230 companies in the S&P 500 Index have reported, 77.5% beat, and 22.5% missed estimates.
JBG Smith Properties (JBGS) announced that it had executed an agreement with Amazon to lease an additional 47.5K square feet of office space in Northern Virginia. The new agreement now brings Amazon’s total footprint to 584.5K sq. ft. in four JBG Smith office buildings.
In REIT earnings, 26 companies in the Wilshire U.S. REIT Index have reported, 17 beat, 1 were in-line, and 8 missed estimates.
- Trade negotiations seem to be progressing well. The NY Times highlighted comments from US President Donald Trump, stating that Chinese President Xi Jinping would be visiting the White House soon, and an analysis of President Xi Jinping’s keynote speech, at the Belt and Road Forum, noted that a number of key demands from US trade negotiators were included as a path forward in opening the domestic market to additional foreign investment.
- March industrial production fell 0.9% m/m versus February’s downwardly revised 0.7% m/m reading. A drop in output of vehicles, production machinery, and metals were cited as the main detractors to the reading.
- As expected, the BOJ kept monetary policy unchanged. The guidance led dovish as the central bank committed to hold rates at zero until spring 2020.
IPE Real Assets reported that Keppel REIT has acquired the T Tower office building in Seoul from PGIM Real Estate for approximately €197.0M. The office tower has 228K sq. ft. in net lettable area and is a five minute walk to the railway station.
- Sweden’s Riksbank kept rates unchanged but delayed any future rate hikes through early next year. Sweden becomes the latest of EU nations, following France and Germany, to lower their economic outlook.
Unibail-Rodamco- Westfield (URW) published an interim period update, which provides some limited data on gross revenues, tenant sales and shopping center footfall for 1Q19. Tenant sales in their European shopping centers were up by +4.3% YOY (+4.8% for flagship centers). In the U.S., specialty sales were up by +5.3% (+5.5% or flagship centers). Footfall in URW’s European shopping centers increased by +2.4%, while no data was provided for its U.S. shopping centers. URW reiterated that inclusive of the previously announced pending sale of Tour Majunga in Paris for €850 mn, it will have disposed of ≈ €3.1 bn of assets. That would leave URW with €2.9 bn of additional sales over the next couple of years to hit the €6.0 bn target provided in February 2019 with FY 2018 results. URW also confirmed its outlook for 2019 with Adjusted Recurring EPS expected to be in the range of €11.80/sh – €12.00/sh.
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.