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Insights

Friday Market Recap

Weekly Assessment of Global Real Estate Trends

Fed Interest Rate Hike

In the U.S.: As expected, the Fed raised short-term interest rates by 25bps for the third time since the financial crisis. The Fed expressed confidence that economy was growing at a steady rate with job growth and inflation reaching their targets. REIT Focus: Ventas Inc. (VTR) purchased a life science, research, and medical campus in Providence, RI from affiliates of a

REITs Raise Equity

In the U.S.: February nonfarm payrolls increased 235K versus January’s upwardly revised 238K gain. The solid payroll figures provided added to the likelihood of a March rate hike. REIT Focus: Alexandria Real Estate Equities, Inc. (ARE) priced 6.1M shares at $108.55 per share. The Company expects to use the net proceeds, post settlement of its forward sales agreements, to

DDR Snags Three Top Executives

In the U.S.: Fed Chair Janet Yellen stated that the FOMC would evaluate this month whether inflation and employment are evolving as expected, in which case a rate hike “would likely be appropriate”. Yellen’s comments sparked a jump in the odds of a March hike from 80% to near 90% as many economists expect the data to be strong

Featured Global Market Reports

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

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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
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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. 
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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
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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

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Department Store Disappearing Act Continues

Macy’s shook the retail real estate world last August, announcing plans to close approximately 100 full-line stores in early 2017 as department store sales continued their secular drift on-line, away from apparel (electronics and experiences) and into other more nimble competitors (fast fashion). Macy’s revealed specific locations slated for closure this week following another disappointing holiday selling season and
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3Q16 Capital Market Outlook

The Wilshire US REIT Index hit its peak on August 1 and has since been on a steady decline in absolute and relative terms versus both the S&P 500 and the Russell 2000 Indices. During the same time period, the yield on the 10-Year Treasury Note has moved upward from 1.458% to 1.608%; perceived as being interest rate sensitive,
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3Q16 Capital Market Review

Brexit, Schmexit. To reverse paraphrase Ron Burgundy, that de-escalated quickly!  Brexit, an event that was touted as the end of the EU, quickly receded into the background as investors shifted from “the sky is falling” mode to “wait and see.” While fall-out day one was immediate with the S&P 500 Index down 3.6%, the recovery was nearly as quick;
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SPG & GGP Call an Audible on Aéropostale

Mall REIT juggernaut Simon Property Group (“SPG”) and General Growth Properties (“GGP”) called an audible last week in a last ditch effort to save bankrupt retailer Aéropostale from liquidation. A group ostensibly led by SPG and GGP successfully bid $243.3 million at auction, beating a credit-bid of $150 million where the most likely outcome was the shuttering of the