AGNC - Mergers And Earnings Lift REITs

• The U.S. equity market rally stalled this past week as intensifying COVID issues in India and domestic inflationary concerns offset a stellar slate of corporate earnings reports and economic data.
• The S&P 500 edged out gains of 0.1% - notching gains in five of the past six weeks - but the Mid-Cap 400 pulled back 0.7% and the Small-Cap 600 declined 0.5%.
• Real estate equities were among the leaders amid a frenetic week of M&A news and impressive earnings reports. The Equity REIT Index gained 1.3% with 16 of 19 property sectors in positive territory.
• The animal spirits are alive in REIT world. Realty Income announced that it will acquire Vereit in an all-stock deal to form a massive net lease REIT that will have a combined enterprise value of about $50B.
• "Beat and Boost" has been the theme of REIT earnings season. Residential and storage REITs have reported stellar results as robust housing demand and surging home values have reignited rent growth.

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