Self-Storage M&A • REIT Earnings • Fed Ahead

July 24, 2023 | Hoya Capital

Self-Storage M&A • REIT Earnings • Fed Ahead Daily Recap Jul 24 Written By Alex Pettee, CFA U.S. equity markets advanced Monday as investors parsed a soft slate of European economic data ahead of a jam-packed week of newsflow stateside, headline by the Fed's interest rate decision. The Dow Jones Industrial Average rose for an 11th straight day- its longest winning streak since 2017- while the S&P 500 advanced 0.4% after closing at its highest-levels since April 2022.

Real estate equities were among the leaders today as the busy week of earnings reports began with some M&A developments in the storage space. The Equity REIT Index gained 0.8%. Public Storage (PSA) gained after it announced a $2.2B deal to acquire Simply Self Storage from Blackstone's (BX) Real Estate Income Trust ("BREIT") for $2.2B - one of a half-dozen portfolio sales by BREIT since late 2022 and the latest example of public REITs capitalizing on Blackstone's struggles to meet withdrawal requests from investors.

Mortgage REIT Dynex Capital (DX) rallied 4% after kicking off mREIT earnings season with a solid report, noting that its Book Value Per Share ("BVPS") increased by 2.9% in Q2 while its comprehensive net income improved to $0.79/share - up from a negative number last quarter and now covering its $0.39/share dividend - driven by hedge gains. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets advanced Monday as investors parsed a weak slate of PMI data across Europe ahead of a jam-packed week of newsflow stateside, headline by the Federal Reserve's interest rate decision on Wednesday.

The Dow Jones Industrial Average rose for an 11th straight day - its longest winning streak since 2017 - while the S&P 500 advanced another 0.4% after closing at its highest-levels since April 2022 last week. Real estate equities were among the leaders today as the busy week of earnings reports began with some M&A developments in the ...