Mall REIT Mergers? [Daily Recap]

February 4, 2020 | Hoya Capital

Mall REIT Mergers? [Daily Recap] Uncategorized Feb 4 Written By U.S. equity markets rallied for the second straight day, recovering much of last week's losses related to the coronavirus outbreak as investor attention turns, perhaps temporarily, to earnings season. The S&P 500 finished higher by 1.5% while the Dow Jones Industrial Average added more than 400 points. The 10-Year Treasury Yield added 9 basis points to close at 1.60%. The broad-based commercial Real Estate ETF (VNQ) finished higher by 1.0%, led by the beaten-down mall REIT sector following decent earnings results from Simon and rumors of forthcoming mall mergers.

Bloomberg reported that fellow mall REIT Taubman, which holds a similarly high-quality portfolio, has held merger talks with Simon Property Group. TCO has jumped nearly 20% from its ten-year lows last week. This news follows reports yesterday that bankrupt mall-based retailer Forever 21 will be purchased by a consortium that includes mall REITs Simon Property (SPG) and Brookfield Properties (BPR) in a fairly unprecedented move for these retail landlords. To continue reading, click here to visit Seeking Alpha! Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Record Day Leaves REITs Behind [Daily Recap] Next Next REITs Throw Forever 21 A Lifeline [Daily Recap]