REITs Reignite Animal Spirits
U.S. equity markets rallied to fresh record-highs this past week on data showing faster-than-expected job growth and continued strength behind the housing market while jitters over rising interest rates calmed.
Closing the holiday-shortened week at record highs, the S&P 500 gained 1.2% led by a rebound in large-cap technology stocks while Small-Caps and Mid-Caps lagged for the third straight week.
Led by the residential REIT sectors, real estate equities were higher on the week as the broad-based Equity REIT Index gained 0.7% with 13 of 19 property sectors in positive territory.
Housing data showed that robust levels of homebuying activity continue to clash with record-low inventory levels, which has accelerated the upward pressure on home values and suburban rents.
Animal Spirits Reignited? Brookfield Asset Management reached an agreement with Brookfield Property to acquire the remainder of its outstanding shares. The $6.5B would be the largest REIT-involved deal in two years.
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