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Insights

Friday Market Recap

Weekly Assessment of Global Real Estate Trends

The Paramount Group, Inc. (PGRE)

North America In the U.S.: USTR announced on Tuesday that the U.S. will impose 25% tariffs on $16B of Chinese imports beginning on 23-Aug.The tariffs, which mainly target industrial goods, were widely expected. China has vowed to retaliate. In earnings, 376 companies in the S&P 500 Index have reported, 83.5% beat, 0.7% were in-line, and 15.8% missed estimates. REIT Focus:

Brookfield Asset Management Class A (BAM.A)

North America In the U.S.: The Fed kept interest rates unchanged.Following the meeting the Fed stated that “the labor market has continued to strengthen and that economic activity has been rising at a strong rate. The Fed is expected to raise rates two more times this year. July nonfarm payrolls fell to 157K versus June’s upwardly revised 248K.The unemployment

Marriott International, Inc. Class A (MAR) 

North America In the U.S.: Q2 GDP was in line at 4.1% versus Q1’s revised 2.2% reading. The strong GDP growth was led by an uptick in consumer spending and nonresidential business investment. Tensions between Iran and the U.S. ratcheted up this week following tense back and forth threats of war between President Donald Trump and President Hassan Rouhani.The tensions

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

1Q18 Capital Market Outlook

As another 7.5% decline in the Wilshire REIT Index and numerous quarters of underperformance to the various private commercial real estate and equity market indices demonstrate, being relatively cheap is not reason enough for a positive outcome.  At the recent Citi CEO conference, REIT management teams quietly bemoaned their Net Asset Value discounts and analysts and investors cried out

1Q18 Capital Market Review

After a start to the year where the equity markets moved close to hitting year-end targets in one month, volatility returned with a vengeance, spurred most likely by the release of the Employment Situation Summary on February 2nd reporting a 2.9% year-over-year increase in average hourly earnings. Everyone became a Philips Curve acolyte and fears of runaway inflation took
Ala Moana Center

Take Out or Fake Out? Brookfield’s Offer for GGP Underwhelms, For a Reason

After nearly five months of behind-the-scenes negotiations, regional mall REIT GGP Inc. (GGP, formerly known as General Growth Properties) recently agreed to be acquired by its largest shareholder (34% owner, originated from its role as plan sponsor and cornerstone investor during GGP’s bankruptcy reorganization and recapitalization in 2010, including the receipt of 57.5 million warrants with an exercise price

4Q17 Capital Market Review

Risk assets enjoyed a smooth upward ride in Fourth Quarter. Investors are learning to ignore short-term political volatility and any suspense surrounding intermediate-term uncertainty involving the next chairman of the FOMC and the Republican tax plan seemed manufactured at best. There was some passing of the baton back and forth between secular growth (FANG stocks) to cyclical (airline, oil