REITs will not be left behind
Real estate equities were mixed amid a busy week of news flow - and one dividend cut - as the broad-based Equity REIT Index (VNQ) gained 0.2% with 10 of 19 property sectors in positive territory while the Mortgage REIT Index (REM) finished off by 0.2%.Homebuilders and the broader Hoya Capital Housing Index delivered another strong week, boosted by a retreat in mortgage rates and a Zillow (Z) report detailing the potentially enduring positive effects on the U.S. housing market and the ongoing "unrelenting demand" across national real estate markets.
Joining a wave of other real estate SPACs this year fueled by several quarters of robust capital raising activity, billboard REIT Lamar Advertising (LAMR) announced that it formed a subsidiary - Lamar Partnering Corporation (LPCXU), a special purpose acquisition company ("SPAC") that has filed to raise $300M in an IPO. LPC plans to search for a partner at the intersection of the out-of-home advertising, technology, and communications sectors. LAMR joins Simon Property (SPG), which sponsored a $300m SPAC targeting innovative businesses that operate in the “Live, Work, Play, Stay, Shop” ecosystem and lab space REIT Alexandria Real Estate Equities (ARE), which sponsored a $250m SPAC targeting an ag-tech and climate innovation company will be listed on the NYSE under ticker symbol "AACE."Read more