Transformational Deals Reshape REIT Sector
- U.S. equity markets were mixed this past week as strong corporate earnings reports and housing market data were offset by a COVID reacceleration in Europe, which tempered growth and inflation expectations.
- The reimposition of economic restrictions in several countries this week - including a full lockdown imposed by Austria - halted the recent upward pressure on energy prices and interest rates.
- Large-cap equities outperformed with the S&P 500 eclipsing record-highs while the Mid-Cap 400 and Small-Cap 600 lagged. Real estate equities were mixed on a frenetic week of M&A news.
- A duo of transformational deals reshaped the data center REIT sector this week with American Tower acquiring CoreSite and KKR acquiring CyrusOne. CubeSmart and Sun Communities also announced major portfolio acquisitions.
- Consistent with strong earnings results from Home Depot and Lowe's, homebuilder confidence jumped in November to a six-month high as accelerating home buyer demand offset ongoing supply chain headwinds.
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