Housing Recovery • Casino M&A? • REITs Rally

June 27, 2023 | Hoya Capital

Housing Recovery • Casino M&A? • REITs Rally Daily Recap Jun 27 Written By Alex Pettee, CFA U.S. equity markets rallied Tuesday as investors cheered a strong slate of housing market data and signs of improving business sentiment that has started to revive long-dormant M&A activity. Following declines of 0.4% on Monday and snapping a two-day skid, the S&P 500 advanced 1.2% today, while the Mid-Cap 400 and Small-Cap 600 each posted gains of over 1.5%.

Real estate equities were among the leaders for a second-straight day. The Equity REIT Index advanced 1.2% today with 17-of-18 property sectors in positive territory while Mortgage REITs gained 2%. Homebuilders and the broader Hoya Capital Housing Index added to their strong year-to-date rebound as the economically-critical U.S. housing sector has exhibited resilience in the face of headwinds from sharply higher mortgage rates. Blackstone is reportedly fielding offers for its stake in the Bellagio Las Vegas held by its non-traded fund, BREIT, as it seeks to raise capital to meet investor withdrawal requests.

VICI Properties (VICI), Gaming & Leisure (GLPI), and Realty Income (O) are seen as potential interested buyers. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets rallied Tuesday as investors cheered a strong slate of housing market data and signs of improving business sentiment that has started to revive long-dormant M&A activity. Following declines of 0.4% on Monday and snapping a two-day skid, the S&P 500 advanced 1.2% today, while the Mid-Cap 400 and Small-Cap 600 each posted gains of more than 1.5%.

The Dow gained 212 points. The rally came despite a fresh leg higher in benchmark interest rates, with the policy-sensitive 2-Year Yield jumping 10 basis points to 4.77%, while the 10-Year Yield rose 5 basis points to close at 3.77% - each closing at or near their highest levels since early March. Real estate equities were among the leaders for a second-straight day. The Equity ...