RIET Hoya Capital High Dividend Yield ETF.png
HOMZ_Logo_Just Ticker.png
  • Alex Pettee, CFA

Mall REIT Mergers? [Daily Recap]

  • U.S. equity markets rallied for the second straight day, recovering much of last week's losses related to the coronavirus outbreak as investor attention turns, perhaps temporarily, to earnings season.

  • The S&P 500 finished higher by 1.5% while the Dow Jones Industrial Average added more than 400 points. The 10-Year Treasury Yield added 9 basis points to close at 1.60%.

  • The broad-based commercial Real Estate ETF (VNQ) finished higher by 1.0%, led by the beaten-down mall REIT sector following decent earnings results from Simon and rumors of forthcoming mall mergers.

  • Bloomberg reported that fellow mall REIT Taubman, which holds a similarly high-quality portfolio, has held merger talks with Simon Property Group. TCO has jumped nearly 20% from its ten-year lows last week.

  • This news follows reports yesterday that bankrupt mall-based retailer Forever 21 will be purchased by a consortium that includes mall REITs Simon Property (SPG) and Brookfield Properties (BPR) in a fairly unprecedented move for these retail landlords.

To continue reading, click here to visit Seeking Alpha!

high yield REIT investing hoya capital logo.png

Hoya Capital Research & Index Innovations is an affiliated index provider and research firm that builds custom indexes tracking U.S. commercial and residential real estate sectors, including indexes tracked by exchange-traded funds (ETFs). 

Hoya Capital Research & Index Innovations