M&A Monday • Yields Jump • REIT Dividend Hike

February 6, 2023 | Hoya Capital

M&A Monday • Yields Jump • REIT Dividend Hike Weekly Recap Feb 6 Written By U.S. equity markets declined Monday while Treasury yields jumped as investors deliberated the implications of strong employment data and geopolitical tensions ahead of another busy week of corporate earnings results. Pausing after a strong start to the year with gains in four-of-five weeks, the S&P 500 slipped 0.5% today while the tech-heavy Nasdaq 100 declined 0.7%.

Small-Caps dipped by nearly 2%. Real estate equities lagged ahead of a busy week of earnings reports as long-term interest rates jumped for a second-straight session. Equity REITs declined 0.7% while Mortgage REITs dipped 3.4%. Life Storage (LSI) surged more than 11% after it received an $11B takeover bid from its peer Public Storage (PSA) in a proposed all-stock deal worth $129 a share - a 17% premium to LSI's last closing price.

Public Storage - which traded roughly flat today on the news - also announced that it will hike its quarterly dividend by 50% to $3.00/share - its first dividend hike since 2016. Income Builder Daily Recap U.S. equity markets declined Monday while Treasury yields jumped as investors deliberated the implications of strong employment data and geopolitical tensions ahead of another busy week of corporate earnings results. Pausing after a strong start to the year with gains in four-of-five weeks, the S&P 500 slipped 0.5% today while the tech-heavy Nasdaq 100 declined 0.7%.

The Small-Cap 600 slid 1.7% after gaining over 5% last week. Real estate equities lagged ahead of a busy week of earnings reports as long-term interest rates jumped for a second-straight session. The Equity REIT Index declined 0.7% today with all 16-of-18 property sectors in negative territory while the Mortgage REIT Index dipped 3.4% and Homebuilders declined about 1.5%. After dipping to four-month lows of around 3.40% last week before the blowout employment report, the 10-Year Treasury Yield jumped another 10 basis points today ...