+ May 14; Reins of Responsibility, Shriners Fez Dome, Calgary; info/registration
+ now that so many public companies are having ‘virtual only’ annual general meetings, is that the demise of ‘actual annual meetings’? … doesn’t bode well for hotel and conference facility operators … tic toc
SAVE THE DATE / upcoming events
+ Mar. 26-27; DARE TO LEAD by Incito, Vancouver; info/register
THERE HAS NEVER BEEN A BETTER TIME TO NEGOTIATE AN OFFICE LEASE IN CALGARY in the last 20 years, and I doubt we'll see better terms in the next 10 years than we can negotiate now; let's discuss your needs now; please call me at your convenience - Mark Kolke, 403-444-6939 - or send me an email: kolke@markkolke.comto discuss how we can deliver a solid impact on your bottom line. Saving money by reducing costs is sound thinking in any market climate - sometimes a move is in order, sometimes a renegotiation is best. Mark Kolke, Agent, MaxWell South Star Realty
RETAINED EXECUTIVE SEARCH - For more information, click here.
INTERESTING TRENDS IN RETAIL
+ Amazon suspended operation of its Prime Pantry unit due to heavy demand for essential goods
+ Birks Group Inc. temporarily closed its stores across Canada
+ Boston Pizza International Inc. closed all restaurants and sports bars temporarily; still open for take-out and delivery
+ Fields Stores (FHC Enterprises) heading into court-supervised insolvency workout; MNP is the proposed trustee
+ Gap Inc. closed all its Gap, Old Navy, Athleta, Banana Republic, Janie and Jack, and Intermix stores across North America
+ H&M closed all stores in Canada and U.S. until April 2nd
+ McDonald’s Canada restaurants are closed; no delivery – just drive-through
+ IKEA Canada temporarily closed all stores in Canada
+ Indigo/Chapters stores are closed until Mar. 27th
+ Ivanhoé Cambridge has closed all its Quebec shopping centres until May 1st
+ Nygard Group in receivership; Richter is receiver
+ RBC is closing some branches temporarily to reduce COVID-19 risk
+ Roots Canada closing its stores until Mar. 31st
+ Second Cup Coffee – now drive-thru, take-out and delivery only
+ Simon, largest U.S. mall owner, closed all its malls
+ Sleep Country Canada closed all its stores temporarily
+ Walmart Canada hiring 150,000 (10,000 in Canada) additional staff to handle store and distribution centre demand
+ White Spot & Triple O’s restaurants suspended dine-in service; still open for take-out and deliver
+ many retailers cutting back on store hours and/or controlling ‘maximum number of customers in-store at any one time’ (i.e.. Best Buy, Costco, Home Depot, and others)
QUOTES
+ We must all face the choice between what is right and what is easy. – Albus Dumbledore
+ It is more rewarding to watch money change the world than watch it accumulate. – Gloria Steinem
KUDOS
+ to Dr. Deena Hinshaw, Chief Medical Officer of Health for Alberta, for keeping us calm and well advised about COVID-19 – we’ve quickly come to appreciate her steadiness and ability to keep us calm and well informed
+ to First Capital REIT announced a $30.0 million fund program to support their small tenants who have been impacted by COVID-10 shutdowns with rent relief
+ to Labatt Breweries of Canada – switching from making beer to making 50,000 bottles of hand sanitizer
+ to the Calgary Flames Foundation – for their $1.15 million donation to the Calgary Food Bank and other community agencies
+ July 15-16; Willow Park Golf and County Club Charity Classic in support of Calgary Reads, Calgary; info/registration/waiting list
+ Aug. 10; 2020 Legends for Learners Tournament in support of The Education Partnership Foundation, Valley Ridge Golf Course, Calgary; sponsorship - info/register
+ Alberta Economic Recovery Council members named: Jack Mintz, Chair; Clive Beddoe, Robert Blakely, Brent Belzberg, Bob Dhillon, Chris Fowler, Stephen Harper, Peter Kiss, Zainul Mawji, Nancy Southern, and Mac Van Wielingen
+ Alberta-wide; Premier Kenny declared a provincial state of emergency, non-essential services to close or self-isolate, no gatherings over 25 people; recently retired doctors and nurses are being recruited to help with the case load
+ Athabasca Oil Corporation announced a $30.0 million reduction in its 2020CapEx Budget to $95.0 million
+ Baytex Energy Corp. reduced its 2020CapEx Budget by 50% to $260.0 million
+ Calgary’s State of Emergency status continues; CEMA chief closing playgrounds, urging Calgarians to quit defying social distancing recommendations
+ Canada and the United States agreed to close the border to all but essential traffic: critical supply chains (food, fuel, life-saving medicines), workers crossing to do essential work, and other ‘urgent reasons’.
+ Canada in crisis mode: Prime Minister Trudeau announced $82.0 billion in relief in an Economic Response Plan; $27.0 billion in direct support, $55.0 billion in liquidity support; Trudeau government likely to introduce emergency measure legislation when the House of Commons resumes sitting today at noon, because of inconsistent steps taken by provinces around enforcement of occupancy load, social distancing etc.. $5.0 billion in relief for farmers, and Emergency legislation expected to come forward in parliament today is expect to give the government sweeping powers to tax and spend through to the end of 2021. Also announced yesterday, $275.0 million in new funding for drug research – of $192.0 million is for new projects by Canadian research labs working on treatment for COVID-19
+ Canadian Natural Resources Limited announced its revised 2020CapEx Budget is $2.96 billion, down from $4.05 billion
+ Canadian Olympic Committee and Canadian Paralympic Committee WILL NOT send athletes to 2020 Summer Games amid international calls to postpone the 2020 Olympics for one year
+ Cardinal Energy Ltd. announced its revised 2020CapEx Budget is $31.0 million
+ COVID-19 good news department: China closed its last temporary hospital – not enough new cases to sustain it; Canadian scientists are in the thick of it, isolating the virus, working toward viable treatment protocols
+ CURCUIT BREAKER: a term we are all going to be hearing a lot more about; when stock market software oversight of trading identifies too quick a spike, or fall, in prices it triggers stoppages. Sometimes the whole market is paused, and often these stoppages relate only to one stock (i.e., single-stock circuit breaker) in which case IIROC will issue a notice of the stoppage, and of the resumption
+ current energy prices; live link to current Bloomberg energy prices / OilPrice.com; Saudi push for greater market share (they are pumping 10 million bpd) pushing down prices to an 18-yr. low, made worse by COVID-19 economic carnage, prices brutalized. Venezuelan regime is weakened, gas at the pump is cheap but we can’t go anywhere … tic toc
+ Frontera Energy Corporation reduced its 2020CapEx Budget to $130.0 million, a drop of 60%
+ Enerflex Ltd. reduced its 2020CapEx Budget by 57% to $90.0 million
+ Ensign Energy Services Inc. reduced its 2020CapEx Budget to $60.0 million, down from $100.0 million
+ rig counts (active/working) – U.S.: down 20 to 772 this week; Canada: down 77 to 98 this week; full breakdown
+ Spruce Meadows canceled its Summer Series: there will be no National, Continental, Pan-American or North American equestrian events this year due to the COVID-19 pandemic
+ stock markets continue to roil – worldwide; NYSE trading floor is empty, they’ve gone to fully electronic trading for the first time
+ Suncor Energy Inc. announced its 2020CapEx Budget is reduced $1.5 billion to $3.9 billion, down 26%
+ Tamarack Valley Energy Ltd. announced its revised 2020CapEx Budget is $95.0 million, down from $170.0 million
+ Tokyo 2020 Summer Games; the International Olympic Committee postponed this year’s games (scheduled for July 24 – August 9) to 2021- dates not announced
+ U.S. government expected the launch an economic stimulus package; US$2.0 trillion relief package stalled in the Senate as Republicans and Democrats wrangle/squabble over priorities; meanwhile, officials fear ‘Italy scale’ fatalities in New York and other states with large elderly populations and shortage of ventilators; 13 states are under lock-down instruction from governors, Trump administration waffling on lifting social-distancing decree … tic toc
+ WestJet suspended all flights to the U.S.
+ Whitecap Resources Inc. announced its reduced 2020CapEx Budget is $200.0 million
THIS WEEK IN FINANCINGS
- proposed & closed
+ Bell Canada is on the market to raise $1.0 billion in debt
+ Intact Financial Corporation is on the market to raise $300.0 million in debt
+ Revive Therapeutics Ltd. closed $1.67 million equity financing by private placement
+ Ridgewood Capital Asset Management Inc. closed $11.919 million equity financing
+ Sienna Senior Living secured $200.0 million unsecured revolving credit facility
+ Summit Industrial Income REIT obtained a $300.0 million unsecured credit facility
~
*editor’s note: names companies involved in debt financing transactions we report in this section are ALWAYS the borrower; we report ‘fresh raises’ and do not report secondary offerings …
INFRASTRUCTURE + P3
+ ENMAX Corporation got regulatory approval to acquire Emera’s Maine electricity transmission and distribution company
+ TransAlta Corporation closed its US$27.0 million acquisition of 29MW cogeneration facility in Michigan
+ widespread concerns over projects going forward/government concerns; industry in Canada and U.S. urging cities/regulators to allow construction to continue as ‘essential services’ … tic toc
INTERESTING REAL ESTATE NEWS FROM OTHER PLACES
+ Anbang Insurance sold is Netherlands office buildings for US$763.0 million
+ Firm Capital Property Trust closed on its acquisition of a 50% interest ($5.4 million) in a $10.7 million industrial portfolio (Edmonton and Leduc)
+ ICM Asset Management acquired One Glen Lakes office building in Dallas, Tx.; 170,000 sq. ft. building; terms not disclosed
+ Starlight U.S. Multi-Family (No.1) Core Plus Fund agreed to acquire apartment complexes in Austin, TX and Raleigh, North Carolina portfolio – 401 units for US$110.0 million
INTERESTING TRENDS IN INDUSTRIAL + LOGISTICS REAL ESTATE
+ Western Speedway property in Langford, BC is on the market For Sale and expected redevelopment as master-planned industrial project; competitive bidding from industrial developers expected
INTERESTING TRENDS IN OFFICE
+ Softbank reported to be pulling out of its US$3.0 billion work-out financing to WeWork; Softbank’s earlier US$5.0 billion funding stays in as sunk-money; meanwhile Softbank is widely reported to be selling US$41.0 billion assets to support debt reduction and US$18.0 billion buy-back of its own shares … tic toc
this week in REITS
+ Allied Properties REIT agreed to acquire ‘The Landing’, 375 Water Street in Vancouver; circa 1900, 148,355 sq. ft. building; terms not disclosed
+ Maplewood International REIT closed the sale of its Netherlands asset,
+ Summit Industrial Income REIT obtained a $300.0 million unsecured credit facility
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