Real estate stocks bounce back amid fresh stimulus hopes

Housing and hospitality saw a boost, but some sectors didn’t do as well

National /
Oct.October 09, 2020 07:15 PM
(iStock)

(iStock)

Renewed hope for an economic stimulus package lifted markets to their highest level in three months, with real estate stocks largely following the trend.

The market volatility index VIX fell this week by 10 percent, a reflection of fewer trading swings.

Housing construction continued to be a bright spot: Lennar, one the nation’s largest homebuilders, has notched record high stock values each week since August. On Friday, the company reached a record $84.07 per share, nearly double six months ago.

Hospitality firms also saw a boost: Hilton Worldwide closed 2.8 percent above where it began the week, at $91.37. Marriott International gained 2.4 percent to close at $99.34. Diamond Rock Hospitality and Park Hotels & Resorts, which both have assets concentrated in hotels and motels, saw stocks increase 1.9 percent and 4.3 percent, respectively.

Despite renewed stimulus hopes, industries facing economic shifts that could outlast the pandemic struggled this week to mount gains.

Retail giant Simon Property Group’s stock edged down this week, closing at $67.72. In February, its price climbed above $142 before nationwide lockdowns shuttered many of the businesses that had signed leases within its malls.

Office REITs also face an uphill battle as many workers have transitioned to remote work. Microsoft is the latest company to join the work-from-home forever club, alongside Zillow, Facebook, Twitter and others.

Boston Properties, which specializes in office real estate, fell 2.9 percent this week to $82.78, and has lost 40 percent of its stock value since February.

The White House is reportedly preparing a $1.8 trillion aid package aimed at struggling businesses and laid-off workers, a reversal from last week when President Donald Trump quashed the effort. It remains to be seen if the package will make it through Congress, however.





    Related Articles

    arrow_forward_ios
    Make Greenland Great Again? Trump wants to buy Arctic territory
    Make Greenland Great Again? Trump wants to buy Arctic territory
    Make Greenland Great Again? Trump wants to buy Arctic territory
    Hamptons’ priciest summer rental to host MAGA extravaganza next month
    Hamptons’ priciest summer rental to host MAGA extravaganza next month
    Hamptons’ priciest summer rental to host MAGA extravaganza next month
    Trump International Hotel D.C. and Donald Trump (Getty, Trump Hotels)
    Trump could profit $100M in DC hotel sale
    Trump could profit $100M in DC hotel sale
    Donald Trump (Getty)
    Pandemic dashed one-quarter of Trump’s NYC retail tenants
    Pandemic dashed one-quarter of Trump’s NYC retail tenants
    Prosecutors probing disparities in Trump Org property valuations
    Prosecutors probing disparities in Trump Org property valuations
    Prosecutors probing disparities in Trump Org property valuations
    New York City has largely regained residents who fled in the pandemic
    New York City has largely regained residents who fled in the pandemic
    New York City has largely regained residents who fled in the pandemic
    (iStock/Illustration by Kevin Rebong for The Real Deal)
    Moves hit 73-year low despite so-called pandemic migration
    Moves hit 73-year low despite so-called pandemic migration
    Republicans are more likely to move to blue states if there are no mask or vaccine mandates (Getty)
    Republicans game to live in blue states — unless there’s a Covid mandate
    Republicans game to live in blue states — unless there’s a Covid mandate
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...