In the U.S.:
- North Korea test fired two short range rockets during the US Thanksgiving holiday. The move was widely viewed as a sign that Kim Jong-un is growing frustrated with the lack of progress regarding denuclearization talks.
Rexford Industrial Realty (REXR) announced the acquisition of three industrial properties in Los Angeles for $56.1 M. Rexford’s statement regarding the transaction highlighted the over $850M in 2019 acquisitions the company has made in prime infill locations in Southern California and highlighted the expectation that these properties would significantly bolster shareholder value going forward.
- Following the signing of the Hong Kong Human Rights and Democracy bill by US President Donald Trump, China has reiterated the threat of retaliation. Although no details have been released, Bloomberg reported that the bill will likely not affect the ongoing trade negotiations.
- October industrial production dropped 4.2% m/m versus September’s 1.2% m/m increase. Main drivers of the decline were autos, general purpose machinery, and electronics.
Hong Kong Developer stocks jumped this week after the city fetched a record $5 Billion land deal for the rights to develop land atop the new high speed railway station.
- October German retail sales fell 1.9% m/m versus expectations for a slight improvement. September’s reading was also revised down from the 0.1% m/m increase initially reported to a flat reading.
Grainger Plc reported its results for FY 2019 this week with adjusted EPS of 11.5 pence/sh that slightly ahead of consensus estimate. Like-for-like rental growth of 3.6% for the FY was solid with its regulated tenancy portfolio coming in at +4.4% and its private rented sector (PRS) portfolio at +3.4%. Grainger’s EPRA NAV at year end was 297 pence/sh and the LTV was at 37.1%. Grainger continues to make good progress in transitioning to more of a play on the evolving UK PRS market as it gradually reduces its regulated tenancy portfolio and continues to growth its PRS portfolio.
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.