ACR - REITs Cool On Overheating Fears

• U.S. equity markets were mostly higher on a volatile week as investors remain skittish about a potential "overheating" U.S. economy and the implications for interest rates, inflation, and equity valuations.
• Bouncing back following two weeks of declines, the S&P 500 gained 0.9% on the week, but the tech-heavy Nasdaq 100 dipped another 1.7% and briefly dipped into "correction territory."
• How hot is too hot? Investors appear concerned that the proposed $1.9 billion stimulus package comes as economic growth is poised to accelerate amid a vaccine-driven reopening.
• Real estate equities delivered a mixed week amid an ongoing rotation out of the "essential" property sectors and into the more "reopening-sensitive" sectors. Three more REITs boosted their dividends.
• While most REITs have built positive momentum in early 2021, mall REIT Washington Prime plunged more than 60% on reports that the troubled landlord is considering Chapter 11 proceedings as creditor talks faltered.

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