Another vaccine gets the nod, Simon says OK to Taubman deal, NAR cracks down on hate speech, two speculating industrial REITs, and a look at upcoming ski season.
Today on Millionacres
Moderna (NASDAQ: MRNA) has joined Pfizer (NYSE: PFE) in announcing positive news about a COVID-19 vaccine, with Moderna reporting today that its version has shown to be 94.5% effective in late-stage trials.
Why it matters: Well, there’s immediate upside, it would seem, for real estate investment trusts (REITs) that provide cold, cold storage. Even more dramatically, this could spell the end of the pandemic. And that would be a mighty tide that would lift all our boats.
Simon Property Group (NYSE: SPG) and Taubman Centers (NYSE: TCO) have avoided a court battle set to begin this week by agreeing to a modification of their original merger agreement.
Why it matters: This could be a sign of optimism from the industry’s biggest mall owner that there’s light at the end of that tunnel. Or maybe it means Simon is overextending itself in a particularly shaky space. The REIT is big and stable enough, though, that it should have the bandwidth to fully execute on its multiple strategies.
The National Association of Realtors (NAR) has made it a violation of its code of ethics to use harassing or hate speech based on someone’s race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.
Why it matters: The trade group can’t take away an agent’s license — that’s up to the state — but it can disaffiliate an agent. And who needs that? This is a timely reminder that things like religion and politics are best left out of the business relationship, no matter how benign you think the thoughts you’re sharing are.
Build it, and they will lease. Millionacres’ Matthew DiLallo breaks down what two industrial REITs are doing that others might not be: buying land and constructing facilities on spec, meaning without securing tenants first.
Why it matters: Duke Realty (NYSE: DRE) and First Industrial Realty Trust (NYSE: FR) are showing an extra dose of confidence in a sector that’s already outperforming the market. Take your cues from them, or invest in them, if you agree.
COVID-19 arrived in full force this spring, just as ski resorts were starting to wind down for the season. Now, as snow has started falling and people are deciding whether it’s safe to travel, it’s clear this winter season could look very different from years past.
Why it matters: Millionacres’ Deidre Woollard explains that although there are positive signs in the form of rising bookings, investors in REITs and other stocks tied up in this business might want to proceed with caution; i.e., bunny hill instead of black diamond at this point.
The Motley Fool has a disclosure policy. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from Millionacres is separate from The Motley Fool editorial content and is created by a different analyst team.
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