Keepin' It Real 

Economics, Housing, & Commercial Real Estate Analysis

1/1
Housing100logo.png
ETF express.png
  • Alex Pettee, CFA

Vaccine Hope | Lockdowns Loom | Mall Merger

  • U.S. equity markets climbed to fresh record-highs on Monday following the release of positive trial results from Moderna's COVID-19 vaccine candidate, offsetting near-term concerns over economic shutdowns in several states.

  • Following combined gains of 10% over the past two weeks, the S&P 500 finished higher by 1.2% today while the Dow Jones Industrial Average rallied 471-points, closing just shy of 30,000.

  • Adding to a historic rebound last week, the COVID-sensitive property sectors led the Equity REIT Index to gains of 1.0% today as 14 of 18 property sectors finished in positive territory.

  • The ongoing merger saga between Simon Property (SPG) and Taubman Centers (TCO) appears to be nearing a relatively peaceful conclusion after the two firms agreed to a revised agreement following months of legal sparring.

  • The jam-packed week of economic data begins tomorrow with Retail Sales and Homebuilder Sentiment. Later this week, we'll see Housing Starts, Building Permits, and Existing Home Sales. REITworld also begins tomorrow, one of two major REIT industry conferences.

Real Estate Daily Recap

U.S. equity markets climbed to fresh record-highs on Monday following the release of positive trial results from Moderna's (MRNA) COVID-19 vaccine candidate, offsetting near-term concerns over economic shutdowns in several cities and states. Following combined gains of 10% over the past two weeks, the S&P 500 ETF (SPY) finished higher by 1.2% today while the Dow Jones Industrial Average (DIA) rallied 471 points closing within 50 points of 30,000. Adding to a historic rebound last week, the COVID-sensitive property sectors led the broad-based Equity REIT ETF (VNQ) to gains of 1.0% today as 14 of 18 property sectors finished in positive territory while the Mortgage REIT ETF (REM) jumped 3.4%, adding to last week's gains of nearly 9%.

Déjà vu? After Pfizer's (PFE) announcement of positive vaccine trial results sent markets surging last Monday, Moderna announced this morning that its vaccine was 94.5% effective at protecting people from Covid-19 and expects to submit for an Emergency Use Authorization (EUA) "in the coming weeks." As discussed in our Real Estate Weekly Outlook, the clock is ticking for approval and distribution amid a "third wave" of targeted economic shutdowns in several hotspots around the country. 10 of the 11 GICS equity sectors finished higher today, led by the Energy (XLE) and Industrials (XLI) sectors. Residential REITs lifted the Hoya Capital Housing Index to solid gains as well ahead of a jam-packed week of housing data beginning on Tuesday as well as earnings reports from Home Depot (HD) and Lowe's (LOW).

The busy week of economic data begins tomorrow morning with Retail Sales data for October, which are coming off a stronger-than-expected gain in September. Also on Tuesday, the NAHB will release Homebuilder Sentiment data for November, which climbed to the highest level on record in the last report. On Wednesday, we'll see Housing Starts and Building Permits for October which are each expected to continue their strong post-pandemic rebound. Finally, on Friday, we'll see Existing Home Sales for October. Existing Home Sales rose to the strongest sales pace in 14 years in September. As usual, we'll be watching the weekly Jobless Claims data on Thursday as well as Mortgage Applications data on Wednesday.

To Continue Reading, Click Here To Visit Seeking Alpha!


Join our Mailing List on our Website

iREIT on Alpha is the exclusive home to Hoya Capital premium research. Visit our website and join our email list for quick access to our real estate research library: HoyaCapital.com where we have links all of our real estate sector reports and daily recaps. You can also follow our real-time commentary on Twitter, LinkedIn, and Facebook.

Disclosure: A complete list of holdings and Real Estate and Housing Index definitions and holdings are available at HoyaCapital.com. Hoya Capital Real Estate advises an Exchange Traded Fund listed on the NYSE. Hoya Capital is long all components in the Hoya Capital Housing 100 Index.

Additional Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.

  • Facebook Social Icon
  • Twitter Social Icon
  • LinkedIn Social Icon

Hoya Capital Real Estate, LLC

Invest@HoyaCapital.com

(833) HOYA-CAP

Hoya Capital Real Estate ("Hoya Capital") is an SEC-registered investment advisory firm that provides investment management services to ETFs, individuals, and institutions, focusing on portfolio and index management of publicly traded securities in the real estate industry. It is not possible to invest directly in an index. Index performance cited in this website or commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Nothing on this site nor any published commentary by Hoya Capital is intended to be investment, tax, or legal advice or an offer to buy or sell securities. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and should not be considered a complete discussion of all factors and risks. Data quoted represents past performance, which is no guarantee of future results. Investing involves risk. Loss of principal is possible. Investments in companies involved in the real estate and housing industries involve unique risks, as do investments in ETFs, mutual funds, and other securities. Hoya Capital has no business relationship with any company discussed/mentioned. Hoya Capital never receives compensation from any company discussed/mentioned. Hoya Capital, its affiliate, and/or its clients and/or its employees may hold positions in securities or funds discussed on this website and our published commentary. A complete list of holdings and other important disclosures and definitions are available by clicking the links below.

Privacy Policy 

 Client Relationship Summary 

Hoya Capital's ADV Part 2

Important Disclosures, Definitions, & List of Holdings 

Seeking-Alpha-Logo.png

The Easy Way To Invest In Real Estate