For the past couple of months, we’ve seen all manner of mayhem as the Walt Disney Corporation wages war against the political stance of one of our most conservative states. In response to Governor DeSantis and a bill they believe goes against their progressive prowess, Disney has decided to disrupt established political processes with powers that stem from their status as an American megacorp.

They’ve staged protests, participated in walkouts, and issued threats against the state for laws limiting discussion of LGBTQ issues for early childhood educators. As one of Florida’s largest private employers and proprietors of their own private district in Reedy Creek, Disney has proven itself as a régime to be reckoned with in terms of both legal recourse and financial influence.

As Florida attempts to dissolve this special governing district and strip the mechanizations of power from the mouse-led cartoon mammoth, Disney is bringing the fight to Florida’s taxpayers.

Just yesterday, they responded to a new law attempting to end their rights to Reed Creek saying Florida would be liable for the district’s $1 billion debt obligation.

From NBC News:

“In light of the State of Florida’s pledge to the District’s bondholders, Reedy Creek expects to explore its options while continuing its present operations, including levying and collecting its ad valorem taxes and collecting its utility revenues, paying debt service on its ad valorem tax bonds and utility revenue bonds, complying with its bond covenants and operating and maintaining its properties,” the statement says.

On the heels of Disney’s debt threat, the stock price for Walt Disney Co. gained a little momentum, up about 0.10%. Of course, this did little to stave off the effects of its year-long slump, the share price having shed 70 points and 37% since its descent last March.

In the most contentious month in terms of corporate/government combat, this one is really starting to take a weird turn. I suppose it’s the price you pay for mixing politics with private businesses.  

Other Non-REIT News to Know About

Good News on the Tech Ticker

Along with Disney’s slight share price increase, the indexes all ended sharply higher yesterday, spurred by tech stocks as markets continued a comeback from a steep selloff earlier this week.

The S&P 500 gained 2.5%, and the Dow surged over 600 points. And, of course, Nasdaq with its tech-rich roster rallied 3.1% to cap the trading day. This marks its most productive day since March on the heels of healthier-than-expected earnings metric from Meta (FB) which sent shares up nearly 18%.

For now, let’s rejoice in the rallying cry on Wall Street. Perhaps we can end this week on a better note than last. For all of those who bought the sale price on shares of Apple (AAPL), Alphabet (GOOGL), and Tesla (TSLA), may fortune ever be in your favor.

The World According to REITs

Canadian “Dream Team” Establishes $1.5 Billion Development Deal

Dream Industrial (DIR.UN) and Dream Unlimited (DRM) have announced a $1.5 billion joint venture with a leading global wealth fund. Here, they intend to buy $500 million in development sites across the Greater Toronto Area and other markets within the Greater Golden Horseshoe Area. The plan is to build some incredible industrial properties with the intention to operate them after completion. The other undisclosed investment fund will hold a 75% ownership interest and the dream team will carry the remaining 25%.

“We are excited to work with a reputed global partner in building best-in-class assets in one of the strongest industrial markets in the world globally,” said Alexander Sannikov, Chief Operating Officer of Dream Industrial REIT.

“We are extremely bullish on the GTA industrial market due to the strong demographics and significant scarcity of buildable land. With older vintage well-located product trading at record high valuations, we will remain opportunistic in sourcing properties that are attractive against our target hurdles and screen well against economic rent and replacement cost. We believe that developments are an attractive way to add brand-new product at attractive economics to the REIT. We believe that this partnership will allow us to enhance our exposure to developments and allow us to improve the overall quality and value of the business quickly and safely.”

For all you TSX traders out there, this might be a move worth watching. I’m certainly excited to see the REIT world coming together even north of the border. Have a great weekend all.