FWAA - REITs Rally Despite Tax Hike Fears

• U.S. equity markets closed on the cusp of record highs as a strong slate of housing data and corporate earnings reports offset concerns over President Biden's proposed capital gains tax hike.
• Narrowly snapping a four-week winning streak, the S&P 500 finished lower by 0.1% on the week, but the Mid-Cap 400 rallied 0.9% and the Small-Cap 600 gained 0.2%.
• Led by the residential sectors, real estate equities were the top-performing industry group this week following a strong start to earnings season. The Equity REIT Index gained 1.7% this week.
• Results from the handful of REITs that reported results this week were impressive - particularly in the housing, logistics, and technology sectors. We saw another REIT-related SPAC deal and some M&A news as well.
• Housing Heats Up: New Home Sales surged in March to the highest level in 15 years as the U.S. housing industry has remained a source of continued strength throughout the early economic recovery.

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