S&P Global Market Intelligence features our top picks of real estate news released during the week.
After underperforming in 2020, the real estate investment trust sector continued its outperformance in the second quarter of 2021, with the RMS increasing 12.0% versus the S&P 500’s 8.6% growth, the Stifel analysts wrote in a Communication from July 1st.
Analysts largely attributed the better performance in the second quarter to the ongoing rally in certain recovery and reopening sectors that underperformed in 2020, such as malls, malls and apartment buildings, while also sectors with ongoing fundamentals such as self-storage and industrials , also produced profits.
According to the analysts, 19 S&P 500 REITs outperformed the S&P 500 in the second quarter, with Extra Space Storage Inc., Public Storage and Equinix Inc. among the top performers.
Since the beginning of the year, the REIT Group has grown 21.8% compared to the S&P 500’s 15.3% growth.
“We are not surprised by the YTD outperformance due to last year’s underperformance, persistently low interest rates and strong or recovering fundamentals in most REIT sectors,” noted the analysts, adding that the sector has been solid Mergers and acquisitions / privatizations was propped up trend “that has swept the group.”
The analysts identified housing, timber and healthcare as the worst performing REIT groups.
Blockbuster deal
* Ventas Inc. agrees Acquisition of another healthcare REIT New senior investment group for approximately $ 2.3 billion as part of an all-stock deal that is expected to be in the the second half. The transaction includes $ 1.5 billion in new senior debt.
Handling large blocks
* Funds managed by Blackstone Group Inc. will purchase Aria Resort & Casino and Vdara Hotel and Spa Las Vegas properties from MGM Resorts International for $ 3.89 billion in cash.
* Separately, Blackstone hired Eastdil Secured to sell the former headquarters of The Charles Schwab Corp. in San Francisco at a cost of about $ 400 million, reported the San Francisco Business Times.
* The RPT Realty mall landlord is considering a possible offer for the assets of the competitive REIT Washington Prime Group Inc. regional mall, reported Bloomberg Law, citing people familiar with the discussions.
* Brixmor Property Group Inc. and Starwood Capital Group are evaluating potential offers to acquire BentallGreenOak’s US grocery-anchored mall portfolio, the Wall Street Journal reported, citing people familiar with the matter. The portfolio includes 10 shopping malls and could sell for up to $ 450 million.
* Multi-family real estate developer Zom Living plans to sell the newly constructed 438-unit Solitair apartment project in Miami’s Brickell Financial District and the 456-unit Las Olas Walk project in downtown Fort Lauderdale, Florida for at least $ 460 million the Commercial Observer reports.
* Kennedy-Wilson Holdings Inc. has formed a $ 1.5 billion joint venture with an unknown global investor to acquire and manage core-plus multi-family communities in the western United States
* GTIS Partners LP is selling over 1,000 rental properties in Atlanta and Nashville, Tennessee, for approximately $ 300 million to Pretium Partners LLC, Bloomberg News reported, citing people familiar with the business.
US real estate market: Sales of existing, new home in May decreased compared to the previous month
More downgrades than upgrades in REIT credit ratings since late 2019
ESG REITake: REITs Outline Green Credit Targets; Equinix promises reduced emissions
Increased default risks indicate uneven recovery from the pandemic for travel and leisure
