In the U.S.:
- The Republican led Senate passed legislation to strike down President Trump’s national emergency declaration at the southern border. Following the move, President Trump signed his first veto while in office.
Terreno Realty Corporation (TRNO) announced the sale of an industrial property in Corona, CA for $12.4M. The property consists of one industrial distribution building containing approximately 90,000 square feet on 5.0 acres.
- Although light on details, China’s State media reported that they have made “concrete progress” on the trade agreement with the US. The report followed a phone conversation between Vice Premier Liu, USTR Lighthizer, and Treasury Secretary Mnuchin on Thursday.
- January core machinery orders fell 5.4% m/m versus the consensus forecast of a 1.7% m/m decrease. The downtrend continued to highlight the headwinds Japan is facing as a result of the US/China trade war.
- As expected, the BOJ voted 7-2 to leaving short term rates at -0.1% and long term rates at ~0%. The BoJ maintained that the economy is expanding moderately although they did highlight the slowdown in demand from overseas economies.
Gaw Capital Partners and a consortium including Goldman Sachs and Blackstone completed the acquisition of 12 shopping centers in Hong Kong from Link REIT for HK$12B. Link REIT plans to use the proceeds to fund new investment opportunities in Hong Kong and first-tier mainland cities.
- Prime Minister Theresa May failed to get her latest Brexit Withdrawal Agreement approved by the UK Parliament. Lawmakers then voted to take the hard Brexit scenario off of the table and approved a short term extension of the Brexit date.
German residential property company LEG Immobilien reported its full year 2018 results this week. FFO I of €5.04/sh was roughly in line with expectations, representing a YOYO increase of 7.9%. Like-for-like rental growth was +3.0% in 2018 with EPRA NAV ending the year at €96.10/sh, an increase of 15.0% YOY. The company also announced a management change with current CEO Thomas Hegel stepping down at the end of May and his successor Lars von Lackum (currently Chief Digital Officer) taking over effective June 1. While Mr. Hegel’s management contract was not scheduled to expire until January 2021, it was concluded after close consultation with the board that it was an opportune time to pass the leadership role on to Mr. Lackum, who had had been brought on by the board with an eye towards eventual succession to the CEO role.
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.