REITs Surge On Merger Mania
Real Estate stocks led U.S. equity markets to fresh record highs this week, shaking off coronavirus-related losses amid a frenetic slate of corporate earnings and M&A news.
Adding on to its impressive 3.2% gains in the prior week, the S&P 500 finished higher by another 1.6% while the Dow Jones Industrial Average added nearly 300 points.
REITs delivered their best week in more than a year, jumping 4.2% as earnings results continue to top estimates and the M&A animal spirits come alive.
Cell Tower REITs surged more than 10% after Sprint and T-Mobile reached a merger deal. Meanwhile, Simon Property plans to buy Taubman Centers, further consolidating Class-A mall ownership.
Residential REITs, homebuilders, and housing-related companies continue to lead the charge in 2020, delivering strong earnings this week as the U.S. housing market has come back to life.