Net Lease M&A • Soft Economic Data • REIT Dividend Hikes

September 15, 2022 | Hoya Capital

Net Lease M&A • Soft Economic Data • REIT Dividend Hikes Real Estate Daily Recap Sep 15 Written By U.S. equity markets extended their slide Thursday despite an apparent resolution in the looming railroad strike as lukewarm economic data likely kept the Fed on course for a "jumbo" rate hike next week. Closing at its lowest level in nearly two months and giving back yesterday's modest gains, the S&P 500 dipped 1.1% today while the tech-heavy Nasdaq 100 dipped nearly 2%.

Real estate equities were among the laggards today despite some positive M&A and dividend news as the Equity REIT Index declined by 1.9% with 18-of-19 property sectors in negative-territory while. STORE Capital (STOR) – our second largest holding in the REIT Focused Income Portfolio - surged 20% today after it announced that it reached a deal to be acquired by GIC and Blue Owl’s Oak Street for $32.25 in cash – a 20.4% premium to STOR's last closing price.

Innovative Industrial (IIPR) - which has been slammed this year on concerns over credit and rent payment issues among its cannabis cultivator tenants - rallied 2% today after it hiked its quarterly dividend by 3% to $1.80/share, representing a forward yield of 8.09% Real Estate Daily Recap U.S. equity markets extended their slide Thursday despite an apparent resolution in the looming rail strike as a mixed slate of economic data likely kept the Fed on course to deliver a jumbo rate hike next week.

Closing at its lowest level in nearly two months and giving back yesterday's modest gains, the S&P 500 dipped 1.1% today while the tech-heavy Nasdaq 100 dipped nearly 2%. Crude Oil dipped more than 4% while the US Dollar Index strengthened to fresh two-decade highs. Real estate equities were among the laggards today despite some positive M&A and dividend news as the Equity REIT Index declined by 1.9% with 18-of-19 property sectors in negative-territory while the ...