From the New York website: And then, global stock and bond markets proved all who predicted a Trump victory would lead to immediate financial turmoil wrong.
The S&P 500 stock index and 10-year treasury yields both rose over the course of Wednesday, indicating that markets weren’t too spooked about a future Trump administration. Among real estate firms, however, the reaction was mixed.
Office REITs with a heavy New York focus did well after an initial dip in the morning. SL Green’s stock was up 1.3 percent for the day. Vornado, whose CEO Steve Roth is visited as one of Trump’s economic advisers, saw its stock rise 1.19 percent.
“I’d say overall it’s positive for real estate just because you have someone in office who is in the industry,” said Sandler O’Neill analyst Alexendar Goldfarb, adding that a Trump victory likely means the 1031 tax exchange is no longer likely to be scrapped.
Hotel REITs also rose Wednesday, while private-prison REITs saw their share prices shoot up. In August, the U.S. Justice Department announced that it would end the use of private prisons, sending shares into a dive. Investors evidently believe Trump will be more open to continuing the experiment. GEO Group, a Florida-based public company specializing in private-prison facilities, saw its stock price rise 21.27 percent Wednesday.
Vector Group, the holding company run by Trump confidante Howard Lorber, saw its stock inch up by 0.33 percent.
The fallout from Trump’s election on Israel’s market was negligible, which should be reassuring for American real estate companies with Israeli investors.