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Insights

Friday Market Recap

Weekly Assessment of Global Real Estate Trends

Office Properties Income Trust (OPI)

North America In the U.S.: Tensions between Iran and the US reached a critical level as the US assassinated Iran’s top general, Soleimani, via drone strike. There was relief mid-week after Iran’s retaliatory strike yielded no casualties and helped ratchet down the war rhetoric. The US unleashed additional economic sanctions on Friday and is in the process of trying

Four Corners Property Trust

North America In the U.S.: Bloomberg reported Qassem Suleimani, general who led Iran Revolutionary Guards’ Quds force, was killed in a US airstrike near Baghdad international airport on Friday. Iranian leader Khamenei vowed ‘harsh retaliation.’ US strike comes after demonstrators attacked US embassy in Iraq last week, protesting earlier American airstrikes on Hezbollah militia bases. REIT Focus: Four Corners

Brookfield Asset Management, Inc.

North America In the U.S.: The House of Representatives voted to pass USMCA agreement, receiving bipartisan support as expected. The agreement replaces NAFTA and according to Treasury Secretary Steven Mnuchin, the agreement will add 0.5% to GDP growth REIT Focus: Bloomberg reported that Brookfield Asset Management Inc. is considering bundling its commercial real estate assets in India into a

Featured Global Market Reports

Browse finance headlines from around the globe we’re keeping an eye on

The Benefits of Global Investing

With 2013 behind us, it is worth noting that Europe was the top performing global region within the FTSE EPRA/NAREIT Developed Index. Europe’s total return greatly exceeded those of Asia and North America, for dollar denominated investors, although Asia was the best performing region on a local currency basis. Europe’s strong performance comes on the heels of a good

Mexico: The Rise of Fibra

We conducted three days of due diligence on the nascent REIT industry in Mexico (two days in Mexico City and one in Monterrey), our itinerary filled with back-to-back meeting with management teams of five of the seven exiting Mexican REITs, called Fideicomisos de Infrastructura y Bienes Raices or Fibras for short. Our discoveries: Mexico is experiencing a manufacturing renaissance. 

A Greek Tragedy…or is it a Comedy?

A Greek Tragedy… or is it a Comedy? Clearly, it is a little of both. As the new Greek government fails to form a coalition, the entire “progress” of the Troika’s (IMF/ECB/EC – and Germany) negotiations reverts back to uncertainty and talk of a Greek exit from the Euro. It is comical that Greece can hold the entire Eurozone

UK CEO Panel Talks London Market

Our European analyst recently attended the BAML UK Real Estate conference in London.  One of the panel discussions involved five CEOs of prominent UK REITs talking about the state of the London real estate market.  The panelists were John Burns (DerwentLondon), Chris Grigg (BritishLand), David Atkins (Hammerson), David Fischel (Capital Shopping Centers), and now retired Francis Salway (Land Securities).

Domestic & Capital Market Insights

What’s happening at home, outlooks & reviews

A Fresh Look at REITs

Commercial real estate has been broadly embraced by institutional, sovereign global, and individual investors. At the same time, equity REITs have matured and grown well beyond the “small-cap” generalization contained in many academic studies over the last two decades. With the Global Financial Crisis (“GFC”) a decade past and negative interest rates prevalent in many global markets, a fresh

I see REIT Passive Ownership Rising… Is Trouble on the Way?

The efficient-market hypothesis (EMH) is a long-debated economic theory first introduced in nascent terms in the early 1900s, and advanced starting in the 1950s, which essentially suggests “security prices fully reflect all available information.” Although variations exist, the natural conclusion is that stock price movements are unpredictable; therefore “you cannot beat the market” and active portfolio management is a

4Q18 Capital Market Outlook

Since August 27, when Michael Bauer and Thomas Mertens published their FRBSF Economic Letter titled Information in the Yield Curve about Future Recessions, the ten-year-three-month spread has gone from “nearly 1 percentage point away from an inversion” to low of 15 bps on January 3, 2019. Put another way, investors were willing to lend money for ten years for

4Q18 Capital Market Review

The US economy is still expanding albeit at a slower rate. The third estimate of Third Quarter GDP growth came in at 3.4%, compared to 2.8% for Third Quarter 2017, and the latest estimate for Fourth Quarter GDP growth from the Federal Reserve Bank of Atlanta is 2.8%. According to the Bureau of Labor Statistics, changes in total nonfarm