REITs Rally • Office Dividend Cut • Apartment Spin-Off

December 15, 2020 | Hoya Capital

REITs Rally • Office Dividend Cut • Apartment Spin-Off Daily Recap Dec 15 Written By Summary U.S. equity markets rallied Tuesday on signs of progress on the long-stalled fiscal stimulus renewal and amid the continued deployment and administration of coronavirus vaccinations across the United States. Finishing less than 0.5% from fresh record-highs, the S&P 500 finished higher by 1.3% today while the Dow Jones Industrial Average jumped 338 points. Mid-Caps and Small-Caps set fresh record-highs.

Real estate equities led the gains today as the broad-based Equity REIT ETF jumped 2.1% with 17 of 18 property sectors in positive territory. Mortgage REITs gained 1.6%. Cannabis REIT Innovative Industrial (IIPR) announced yesterday afternoon that it was increasing its dividend for the third time this year. IIPR is one of 46 equity REITs that has raised its dividend this year and one of six REITs that has raised multiple times this year.

Several troubled property sectors are still moving in the wrong direction. Office REIT Paramount Group (PGRE), which owns a NYC and SF portfolio, slashed its dividend by 30%. Just 6 REITs have reduced their dividend since June, 4 of which have been office REITs. Real Estate Daily Recap U.S. equity markets rallied Tuesday on signs of progress on the long-stalled fiscal stimulus renewal and amid the continued deployment and administration of coronavirus vaccinations across the United States.

Finishing less than 0.5% from fresh record-highs, the S&P 500 ETF ( SPY ) finished higher by 1.3% today while the Dow Jones Industrial Average ( DIA ) jumped 338 points. The tech-heavy Nasdaq 100 ( QQQ ) eclipsed record-highs, gaining 1.0%. Real estate equities led the gains today as the broad-based Equity REIT ETF ( VNQ ) jumped 2.1% with 17 of 18 property sectors in positive territory. The Mortgage REIT ETF ( REM ), meanwhile, gained 1.6% on the day.

Coronavirus vaccinations have now commenced in all fifty states and shipments to ...