Merger Monday • Housing Rebound • REIT Earnings

February 27, 2023 | Hoya Capital

Merger Monday • Housing Rebound • REIT Earnings Real Estate Daily Recap Feb 27 Written By U.S. equity markets rebounded Monday following their worst week of the year as investors assessed another slate of hotter-than-expected economic data, which has complicated the monetary policy outlook. Following declines of nearly 3% last week, the S&P 500 rebounded 0.3% today while the tech-heavy Nasdaq 100 rallied 0.7%. The Dow advanced 72 points. Real estate equities were mostly-higher as well today as REIT earnings season entered its final stretch.

The Equity REIT Index advanced 0.1% today with 9-of-18 property sectors in positive territory. Pending Home Sales data this morning showed the effects of the short-lived pullback in mortgage rates in early 2023 with home buying activity surging by the most since June 2020 on a month-over-month basis. Merger Monday: Broadmark Realty (BRMK) surged after it agreed to be acquired by fellow commercial mortgage REIT Ready Capital (RC) in a $787M all-stock at an implied value of $5.90/share - a 41% premium to BRMK's last closing price.

Income Builder Daily Recap U.S. equity markets rebounded Monday following their worst week of the year as investors assessed another slate of hotter-than-expected economic data, which has complicated the monetary policy outlook. Following declines of nearly 3% last week, the S&P 500 rebounded 0.3% today, while the tech-heavy Nasdaq 100 recovered 0.7%. The Dow advanced 72 points. Real estate equities were mostly-higher as well today as REIT earnings season entered its final stretch.

The Equity REIT Index advanced 0.1% today, with 9-of-18 property sectors in positive territory. The Mortgage REIT Index slipped 0.6% while Homebuilders gained 0.5%. As discussed in our Weekly Outlook , hotter-than-expected economic has likely made the path to an economic "soft landing" more turbulent, raising concerns that the central bank may be forced to keep interest rates higher for longer. Pending Home Sales data this morning showed the effects of the short-lived pullback in ...