Done Deal? • REIT M&A • Special REIT Dividend

May 30, 2023 | Hoya Capital

Done Deal? • REIT M&A • Special REIT Dividend Daily Recap May 30 Written By Alex Pettee, CFA U.S. equity markets finished flat Tuesday, giving back early-session gains on the heels of a debt ceiling agreement, as investors evaluated the likelihood of passage and the economic implications. Following gains of 0.3% last week that lifted the large-cap benchmark to its highest level since August, the S&P 500 finished fractionally-higher today but the Mid-Cap 400 and Small-Cap 600 declined.

Real estate equities rebounded today as interest rates pulled back from two-month highs on news of the debt ceiling accord. The Equity REIT Index advanced 0.4% today, with 13-of-18 property sectors higher. Small-Cap hotel REIT Sotherly Hotels (SOHO) rallied more than 12% today after it announced that it will make a special dividend for its suite of preferred stock to reduce its accumulated unpaid dividends during its suspension from mid-2020 through early 2023.

Arlington Asset (AAIC) rallied more than 45% today after fellow mREIT Ellington Financial (EFC) announced that it will acquire the small-cap REIT in a stock and cash deal at an implied price of $4.77 per share - a 73% premium to AAIC's share price on Friday. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets finished flat Tuesday - giving back early-session gains on the heels of a debt ceiling agreement - as investors evaluated the likelihood of passage and the economic implications of proposed spending cuts.

Following gains of 0.3% last week that lifted the large-cap benchmark to its highest level since August, the S&P 500 finished fractionally higher today but the Mid-Cap 400 , Small-Cap 600 , and Dow all finished lower. The tech-heavy Nasdaq 100 advanced 0.5% today in a continued AI-driven rally led by chip maker Nvidia. Real estate equities rebounded today as interest rates pulled back from two-month highs on the debt ceiling accord news.

The Equity REIT Index advanced 0.4% ...