North America In the U.S.: The Treasury Department noted that the final FY19 federal budget deficit came in at $984B, up ~26% y/y. The increased deficit was driven wider by higher spending on defense, debt, and healthcare. In earnings, 200 companies in the S&P 500 Index have reported, 80.9% beat, 0.5% were in-line, and 18.6% missed estimates. REIT Focus: Kilroy Realty (KRC) announced that it had executed a 12-year lease with Stripe, Inc. for approximately 421,000 square feet of space at Phase I of the company’s approximately 656,000 square foot South San Francisco development project. KRC acquired the approximately 40-acre, fully entitled, waterfront site in June of 2018 and started construction on the first of four phases in March 2019.

North America In the U.S.: In a mad scramble to repair the situation in Syria, US Vice President Pence and Secretary of State Pompeo were able to secure a 120 hour ceasefire from Turkish President Erdogan to enable the safe evacuation of the Kurds. The move by the US President Trump to remove forces from the region has drawn backlash from both political parties and may put him in a weaker position as the impeachment probe intensifies. REIT Focus: Columbia Property Trust (CXP) announced that it has signed an agreement to acquire Normandy Real Estate Management, LLC, a leading developer, operator and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C. for approximately $100M. The

North America In the U.S.: The Fed minutes and subsequent speeches showed that policymakers are torn on the correct path forward given the current data. Some members fear that being too accommodative would leave the Fed vulnerable with little tools to combat future recession risks. Of note, the NY Fed announced that it would start buying $60B per month in Treasuries beginning 15-Oct. REIT Focus: Pebblebrook Hotel Trust (PEB) announced the sale of the Topaz Hotel in Washington DC for $33M. Pebblebrook is targeting Q4 to complete the sale. ASIA In China: US President Trump stated that the US and China have reached a “substantial phase 1” trade agreement, though it may take over a month to cast it into

North America In the U.S.: September ISM Manufacturing fell to 47.8 versus August’s 49.1 reading. This was the lowest level since 2009 sparking fears of an economic slowdown. The sentiment was further compounded by the lackluster ISM Non-Manufacturing reading which fell to 52.6 from 56.4.September ADP private payrolls increased 135K versus a downwardly revised 157K reading in August. Unemployment ticked down to a 50 year low of 3.5%. REIT Focus: Equinix, Inc. (EQIX) announced an agreement with Axtel S.A.B. de C.V. (AXTELB.MM) to acquire three data centers that serve the Mexico City and Monterrey metro areas of Mexico for $175M. The acquisition is expected to close in Q1 2020. Asia In China: Hong Kong protests escalated this week as a

North America In the U.S.: The White House continues to be on defense as new details emerge regarding the whistleblower report showing a potential cover up of the President’s call with the Ukrainian president where it appears that President Trump urged the Ukrainian president to pursue an investigation into his political rival Joe Biden. Congress has opened an official impeachment inquiry, which has been labeled a witch hunt by the White House. REIT Focus: Paramount Group, Inc. (PGRE) announced the sale of Liberty Place in Washington D.C. for $154.5M. Paramount Group plans to use the proceeds to fund its recent purchase of Market Center in San Francisco. ASIA In China: Trade talks with the US seem to have de-escalated this