VRAI - REITs Rally Amid Reopening Rotation

• U.S. equity markets advanced for the fifth-straight week as encouraging employment data, dovish Federal Reserve commentary, and surprising election results powered the major averages to fresh record highs.
• Closing the week on a seven-day winning streak, the S&P 500 gained 2.0% this week, while the Mid-Cap 400 rallied 4.0% and the Small-Cap 600 surged nearly 7%.
• The long-dormant "reopening trade" was seemingly back this week, a theme that was on full-display in the REIT sector as COVID-sensitive sectors including malls, hotels, and office REITs soared.
• Powered by solid results from Simon Property and Tanger Outlets, mall REITs surged nearly 20% this week. Shopping center REITs also rallied following strong results from Regency Centers and Federal Realty.
• NexPoint Residential jumped after the small-cap Sunbelt-focused apartment REIT reported that it achieved rent growth on new leases of a staggering 23.8% in Q3 - the highest new lease growth ever reported.

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