REIT M&A • UK Inflation • MPW Tenant Update

May 24, 2023 | Hoya Capital

REIT M&A • UK Inflation • MPW Tenant Update Daily Recap May 24 Written By Alex Pettee, CFA U.S. equity markets dipped for a second-session today while benchmark interest rates climbed to two-month highs, pressured by hotter-than-expected European inflation data and an ongoing debt ceiling impasse. Following declines of 1.1% yesterday, the S&P 500 declined another 0.8% today while the Small-Cap 600 posted steeper declines of over 1%. The Dow declined 256 points.

Real estate equities were among the laggards today, pressured by higher rates and regional bank-related credit concerns. The Equity REIT Index dipped 2.2% today with all 18 property sectors lower. A pair of externally-managed REITs advised by AR Global - Global Net Lease (GNL) and Necessity Retail REIT (RTL) - announced plans to merge and internalize their management under the Global Net Lease. Embattled hospital owner Medical Properties Trust (MPW) - which has been in the cross-hairs of short sellers over the past year - was among the better-performers today after it announced that its second-largest tenant - Prospect Medical - completed $375M in new financings from third-party lenders.

Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets dipped for a second-session today while benchmark interest rates climbed to two-month highs, pressured by hotter-than-expected European inflation data and an ongoing debt ceiling impasse. Following declines of 1.1% yesterday, the S&P 500 declined another 0.8% today while the Mid-Cap 400 and Small-Cap 600 posted steeper declines of 0.9% and 1.2%, respectively. The Dow declined 256 points. The 2-Year Treasury Yield and 10-Year Yield each climbed to their highest levels since early March after U.K. inflation data showed lingering inflationary pressures in Europe.

Real estate equities were among the laggards today, pressured by higher rates and regional bank-related credit concerns. The Equity REIT Index dipped 2.2% today, with all 18 property sectors in negative territory, while the Mortgage REIT Index declined 2.5%. Homebuilders were among the ...