On Tuesday, the S&P 500 was up 0.4% while Toronto was down 0.4%.
Cost took a peek at $500 today reaching $499.49 and closed at $497. I had an order in to sell some of what I held at $499 and so that got sold. Within a few days it will report October same-store sales growth. Possibly it will have a hard time showing much increase compared to strong sales in 2020 or perhaps the supply chain problems will impact it. Or, maybe it will continue to outperform. It’s a great company but it’s not immune from a decline.
The Fed chair is providing remarks tomorrow and that could certainly move markets especially if it appears that an interest rate hike is more imminent or if tapering off of bond bonding is faster than expected.
The Melcor REIT announced Q3 results after the close. Everything looked pretty good with no bad news noted in the press release. Looking into the detailed I do see that new leasing appears to be at significantly discounted rates ($13.60 which is lower than the average expiring least which was $17.93). This is not great but is no doubt better than letting space sit empty. In better news, they booked a fair value gain on two properties.
In fact the results looked very good compared to Q3 last year but that was largely becasue last year suffered much more from the COVID situation. Notable in this latest report was that 99% of the rent has been collected for Q3 as well as year to date.
A couple of weeks ago they announced that the distribution will remain unchanged for Q4. Therefore the market may not show much reaction to this news. It appears to me that they easily have the income to increase the distribution but they are being conservative.