SPGS - Real Estate Remains Red-Hot

• U.S. equity markets rallied to fresh record-highs this past week as long-term interest rates and inflation expectations pulled back despite a stellar slate of economic data and corporate earnings reports.
• Concerns over the impact of a temporary safety-related halt of the Johnson & Johnson vaccine and ongoing COVID issues in Europe and Asia led to a bid for U.S. Treasuries.
• Real estate equities - particularly the red-hot residential sectors - were among the leaders on a busy week of M&A news. Equity REITs rallied 2.5% while Mortgage REITs gained 1.5%.
• The "animal spirits" are alive in REIT world. Kimco Realty and Weingarten Realty announced a merger to become the largest open-air shopping center REIT while Public Storage announced a major $1.8B acquisition.
• The red-hot housing industry - which has been a continued leader of the early economic recovery - showed signs of continued strength this week as Housing Starts climbed to the strongest rate in nearly 15 years.

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