Merger Monday | Dividend Season | Preview Of Week Ahead

December 7, 2020 | Hoya Capital

Merger Monday | Dividend Season | Preview Of Week Ahead Daily Recap Dec 7 Written By Summary U.S. equity markets finished mostly lower Monday as investor optimism about forthcoming coronavirus vaccines was tempered by the ongoing "third wave" of coronavirus-induced economic shutdowns. Following gains of 1.7% last week, the S&P 500 finished lower by 0.2% while the Dow Jones Industrial Average retreated 149-points. The tech-heavy Nasdaq 100, however, gained 0.6%.

Real estate equities were under pressure today following a strong week of outperformance as the broad-based Equity REIT ETF declined by 0.8% today with 14 of 18 property sectors in negative-territory. Healthcare REIT Alexandria Real Estate (ARE) boosted its dividend for the second time this year, joining the six REITs that boosted dividends last week. 45 equity REITs have now raised dividends in 2020 compared to 66 that have reduced or suspended payouts.

Mortgage REIT Merger; Anworth Mortgage (ANH) jumped more than 8% after Ready Capital (RC) announced it would merge with the mREIT in a cash and stock deal worth $2.94 per share, a 25% premium to ANH's close last Friday. Real Estate Daily Recap U.S. equity markets finished mostly lower Monday as optimism about forthcoming coronavirus vaccines - which could be administered in the U.S. beginning as early as this week - was tempered by the ongoing " third wave " of coronavirus-induced economic shutdowns.

Following gains of 1.7% last week, the S&P 500 ETF ( SPY ) finished lower by 0.2% while the Dow Jones Industrial Average ( DIA ) retreated 149-points. The tech-heavy Nasdaq 100 ( QQQ ), however, gained 0.6%. Real estate equities were under pressure today following a strong week of outperformance as the broad-based Equity REIT ETF ( VNQ ) declined by 0.8% today with 14 of the 18 property sectors in negative territory.

The Mortgage REIT ETF ( REM ) declined 1.4% on the day. As discussed in our Real Estate Weekly ...