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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (164981)	11/9/2020 6:29:52 PM
From: TobagoJack	Read Replies (1) \| Respond to of 217927

international norm must be maintained in the meantime the dress-rehearsal to 'normal' life (pre-2020) gives us a hint on how to play should the vaccine not quite ready for prime time, with its 10-days / minus-94 degrees logistic / storage cool-box requirement wsj.com Real-Estate Stocks Soar on Hope Vaccine Will Ease Covid Concerns The sector has trailed well behind the overall market after the pandemic altered work and shopping patterns By Updated Nov. 9, 2020 5:32 pm ET The Simon Property-owned shopping mall in Woodbury, N.Y., was forced to suspend business in May because of pandemic restrictions.Photo: Kevin Hagen for The Wall Street Journal Bouncing BackThe share prices of leading real-estate ownerssurged MondaySource: FactSetAs of Nov. 9, 4 p.m. ET %SL Green Realty Corp.Host Hotels & Resorts Inc.Simon Property Group Inc.Dow Jones Industrial AverageNov. 901020304050 Shares of Host Hotels & Resorts Inc., HST 30.09% one of the company’s largest hotel owners, rose 30%, while mall giant Simon Property Group Inc. SPG 27.87% gained 28%. The share price of SL Green Realty Corp. SLG 36.92% , Manhattan’s largest office owner, was up 37%. For much of the year, real-state stocks trailed well behind the overall stock market. Hotel and retail owners have been hit hard by the pandemic, which has shuttered shops and restaurants across the country and caused a sharp drop in travel. Office owners face high vacancy rates and have struggled to convince tenants to bring back their employees, while apartment owners in cities like New York and San Francisco have been forced to offer massive discounts to renters. Monday’s news that a vaccine developed by BioNTech SE and PfizerInc. is more effective than expectedraised hopes that people will flock back to malls, hotels and office towers. “Real estate was a Covid loser. Many of the business models are based on assembly of people,” said Michael Knott, head of U.S. REIT research at Green Street. “And now with the potential vaccine, it’s like Doc Brown figured out how to get his time machine to work.” Despite Monday’s surge, many leading real-estate stocks are still down for the year, reflecting investor concerns that the sector’s troubles aren’t over. The aftereffects of the recession could depress property income for years to come. Remote work is becoming more popular and a number of corporations have said they plan to use less office space even after the pandemic is over. Declines in foot traffic have hurt retailers in cities such as New York.Photo: Richard B. Levine/Zuma Press As of Monday afternoon, SL Green’s stock price was $60, up from $43.82 on Friday but still far off from its $95.77 peak in February. One reason why real-estate owners saw their stocks plummet and now surge is that they often have a lot of debt, said Mr. Knott. High mortgage debt means even a small drop in property values can make it more likely that a property owner won’t be able to repay their loans, which can lead to a big drop in share prices. Conversely, the expectation of even a small increase in property values can lead to a much larger increase in share prices. The shares of rental-apartment owners also surged on Monday, but Alexander Goldfarb, a senior research analyst at Piper Sandler, cautioned that their outlook hasn’t changed overnight. “The coastal apartments have to depend on return to work,” he said. “So far, that looks to be middle of next year. And companies aren’t going to accelerate those plans, unless there’s wide dissemination of a vaccine today.” Related Video Joe Biden Rolls Out Plans for Covid-19 Task Force 0:00 / 2:27 1:17 Joe Biden Rolls Out Plans for Covid-19 Task Force President-elect Joe Biden outlined the priorities of a newly created Covid-19 advisory board that will develop his administration's response to the pandemic. Photo: Fox Write to Konrad Putzier at konrad.putzier@wsj.com