In the U.S.:
- March nonfarm payrolls were up 196K versus February’s upwardly revised 33K reading. The unemployment rate remained unchanged at a healthy 3.8% and could dip even lower given the favorable initial claims data released on Thursday.
WashREIT (WRE) entered into a definitive agreement to purchase a 2,113 unit multifamily portfolio, consisting of seven suburban Class B apartment communities in northern Virginia and Montgomery County, Maryland, for approximately $461M. The company plans to sell select commercial assets to fund the acquisition which is expected to close in Q2 of 2019
- March official manufacturing PMI rose to 50.5 versus February’s 49.2 reading. Although the better than expected reading was welcome news, some analysts believe that the reading may have been distorted by the Lunar New Year holiday.
- February nominal average wages fell 0.8% y/y versus the consensus estimate for 0.9% y/y rise. January’s reading was revised down to -0.7% y/y from the prior positive 1.1% reading. The lower reading and revision were largely attributed to the ministry’s revised calculation methodology.
Embassy Office Parks, India’s first REIT, rose on its trading debut. The REIT, which is backed by the Blackstone Group LP, will own and operate about 33 mn sf of office space in the Indian cities of Bengaluru, Pune, Mumbai and Noida.
- Final March German manufacturing PMI hit an 80-month low of 44.1 from the prior reading of 47.6. The reading marked the third consecutive month below the 50.0 threshold, signaling a contraction.
- UK Prime Minister Theresa May formally requested a June 30, 2019 Brexit extension from the EU, with the option to leave earlier if Parliament ratified a deal. The move was highly contested by the MPs and will also likely be rejected by the EU.
Global logistics landlord Prologis announced this week it had acquired a portfolio of logistic properties in Sweden for SEK 3.8 bn (≈€366 mn) on behalf of its Prologis European Logistics Fund (PELF). Prologis owns 27.9% of PELF. The portfolio consisted of 11 high quality, modern logistics properties totaling 295,000 sqm (≈ 3.2 mn sf) and is a good indicator of the strong demand for well-located logistics assets in Sweden. Approximately 70% of the properties are located in the Stockholm and Gothenburg regions of Sweden. Although not disclosed, the price is estimated to reflect a net rental income yield (NRI) of close to 4%. The seller was a joint venture between Swedish pension fund Alecta and a Swedish property company (Bockasjö AB).
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.