Stocks Slump • REIT Proxy Fight • Homebuilder Sentiment

December 19, 2022 | Hoya Capital

Stocks Slump • REIT Proxy Fight • Homebuilder Sentiment Real Estate Daily Recap Dec 19 Written By U.S. equity markets declined for a fourth-straight session Monday- extending their post-Fed slump- while bond yields rebounded amid lingering uncertainty of a Fed pivot and renewed COVID concerns in China. Closing at its lowest levels since early November and pacing for a third-straight weekly decline, the S&P 500 declined 1.0% today while the tech-heavy Nasdaq 100 fell 1.3%.

Real estate equities were also broadly lower today with the Equity REIT Index declining 1.3% with 17-of-18 property sectors in negative territory, but Mortgage REITs advanced 0.1%. Several weeks after China began to relax some of its "COVID-zero" policies, reports of surging case counts in Beijing have sparked renewed uncertainty over the outlook for supply chains in the U.S. and broader global economic demand. Global Net Lease (GNL) and Necessity Retail REIT (RTL) were in focus today after activist firm Blackwells Capital advanced an ongoing proxy battle by filing a lawsuit against the two REITs - both externally managed by AR Global - after the REITs rejected the firm's director candidate nominations.

Income Builder Daily Recap U.S. equity markets declined for a fourth-straight session Monday - extending their post-Fed slump - while bond yields rebounded amid lingering uncertainty of a Fed pivot and renewed COVID concerns in China. Closing at its lowest levels since early November and pacing for a third-straight weekly decline, the S&P 500 declined 1.0% today - once again beaching the "bear market" threshold of a 20% decline - while the tech-heavy Nasdaq 100 fell 1.3% to push its drawdown to over 31% from its highs late last year.

Real estate equities were also broadly lower today with the Equity REIT Index declining 1.3% with 17-of-18 property sectors in negative territory, but the Mortgage REIT Index finished higher by 0.1%. Several weeks after China began to relax some of its "COVID-zero" policies, ...