REIT Mega-Merger • Happy Homebuilders • Retail Revival

April 15, 2021 | Hoya Capital

REIT Mega-Merger • Happy Homebuilders • Retail Revival Daily Recap Apr 15 Written By Summary U.S. equity markets climbed to fresh record-highs Thursday after retail sales and housing data showed a reacceleration in early Spring while jobless claims declined to the lowest level since last March. Real estate equities were among the leaders today as the broad-based Equity REIT ETFs jumped 1.8% 17-of-19 property sectors in positive territory. Mortgage REITs finished flat.

Kimco Realty (KIM) and Weingarten Realty (WRI) announced a merger to become the largest open-air shopping center REIT with a pro forma equity market cap of roughly $12B. Boosted by the third wave of stimulus checks, Retail Sales were historically strong in March, surging by 9.8% from the prior month and were higher by 27.7% from the prior year. Homebuilder Confidence data showed that Home Buyer Traffic climbed to the second-highest level on record last month as the red-hot housing industry looks to build further strength into the Spring buying season.

Real Estate Daily Recap U.S. equity markets climbed to fresh record-highs Thursday after retail sales and housing data showed a reacceleration in early Spring while jobless claims declined to the lowest level since last March. Lifting its week-to-date gains to over 1%, the S&P 500 ETF ( SPY ) finished higher by 1.1% today while the Mid-Cap 400 ( MDY ) gained 0.7% and the Small-Cap 600 ( SLY ) climbed 0.4%.

Real estate equities were among the leaders today as the broad-based Equity REIT ETFs ( VNQ ) jumped 1.8% 17-of-19 property sectors in positive territory while the Mortgage REIT ETFs ( REM ) finished flat. The "American Exceptionalism" pattern is back this week as U.S. equities, bonds, and the U.S. dollar have rallied in synchrony. Despite strong economic data this morning, the 10-Year Treasury Yield retreated to the lowest levels since early March amid continued COVID issues abroad.

Nine of the eleven GICS equity sectors ...