Retail REIT M&A • Stocks Rebound • Housing Shortage

May 18, 2023 | Hoya Capital

Retail REIT M&A • Stocks Rebound • Housing Shortage Daily Recap May 18 Written By Alex Pettee, CFA U.S. equity markets climbed to a nine-month high Thursday as investors weighed signs of progress on debt-ceiling negotiations and solid economic data against a continued drumbeat of hawkish Fed commentary. Closing at its highest-level since last August, the S&P 500 advanced 0.9% while the tech-heavy Nasdaq 100 rallied nearly 2% to close at fresh 52-week highs.

Real estate equities were laggards today, however, pressured by a fourth-straight day of rising benchmark interest rates. The Equity REIT Index declined 0.5% today, with 13-of-18 property sectors in negative-territory. Retail REIT M&A: Regency Centers (REG) - the second largest strip center REIT - announced a $1.4B all-stock deal to acquire Urstadt Biddle Properties (UBP) at $20.40/share, a roughly 33% premium to UBP's last closing price. You can't buy what's not for sale.

Existing Home Sales data this morning showed that sales of previously-owned homes declined slightly in April from the prior month, but historically low inventory levels were the primary culprit behind the weakness. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets climbed to a nine-month high Thursday as investors weighed signs of progress on debt-ceiling negotiations and solid economic data against a continued drumbeat of hawkish central bank commentary.

Closing at its highest-level since last August, the S&P 500 advanced 0.9% while the tech-heavy Nasdaq 100 rallied nearly 2% to close at fresh 52-week highs. The Dow gained 115 points. Real estate equities were laggards today, however, pressured by a fourth-straight day of rising benchmark interest rates. The Equity REIT Index declined 0.5% today, with 13-of-18 property sectors in negative territory, but the Mortgage REIT Index advanced 1.1%. Homebuilders and the broader Housing Index continued their strong week on data showing that housing inventory levels remain near historic lows.

Benchmark interest rates ticked higher for a fourth-straight session, lifted today ...