REIT M&A • Stocks Rebound • Yields Retreat

November 22, 2022 | Hoya Capital

REIT M&A • Stocks Rebound • Yields Retreat Real Estate Daily Recap Nov 22 Written By U.S. equity markets finished broadly higher in a quiet pre-holiday session Tuesday lifted by a solid slate of retail earnings results and a slightly less hawkish tone from Fed officials. Closing at its highest-level in two months, the S&P 500 advanced 1.4% today - trimming its year-to-date drawdown to under 16% - while the tech-heavy Nasdaq 100 advanced 1.4%.

Real estate equities were also higher today with the Equity REIT Index advancing 0.6% with 13-of-18 property sectors in positive territory while the Mortgage REIT Index gained 1.3%. Veris Residential (VRE) rallied more than 3% on reports that private equity firm Fortress Investment Group agreed to help fund Kushner Cos.’ unsolicited $4.3B bid to acquire the apartment REIT. A reported rise in COVID cases in China contributed to downside pressure on interest rates today with the 10-Year Treasury Yield slipping 7 basis points to close at 3.76% - sending the 10-2 Yield Curve back to its deepest inversion since 1982.

Income Builder Daily Recap U.S. equity markets and bond markets finished broadly higher in a quiet pre-holiday session Tuesday lifted by a solid slate of retail earnings results and a slightly less hawkish tone from Fed officials. Closing at its highest level in two months, the S&P 500 advanced 1.4% today - trimming its year-to-date drawdown to under 16% - while the tech-heavy Nasdaq 100 finished higher by 1.4% today.

Led on the upside today by retail and hotel REITs, the Equity REIT Index advanced 0.6% with 13-of-18 property sectors in positive territory while the Mortgage REIT Index gained 1.3%. Homebuilders rallied nearly 3% following a slate of analyst upgrades citing a "favorable risk-reward" balance for the beaten-down housing industry. A reported rise in COVID cases in China contributed to downside pressure on interest rates today with the 10-Year Treasury Yield slipping 7 basis points ...