Market News

Federal Reserve officials have raised rates this year at the fastest pace since the early 1980s.

Nontraded REITs paid out $3.7 billion in redemptions in the third quarter. While they were still raising more new funds from investors than they were losing to withdrawals, that marked the highest withdrawal figure in years and a 12-fold increase from the third quarter of 2021.

Wynn Resorts announced the completion of a planned sale of land and other real estate assets at its Encore Boston Harbor resort casino for $1.7 billion in cash to Realty Income Corp. Wynn will continue to operate the Encore Boston Harbor five-star resort via a sale-leaseback arrangement with Realty Income, the San Diego real estate investment trust. The lease is valued at $100 million annually for a 30-year term. Rent at the property will escalate at a 1.75% annual rate for the first 10 years of the lease.

Blackstone Inc. has agreed to sell its 49.9% stake in two Las Vegas hotels in a deal that values the properties at $5.5 billion. The New York investment firm is selling its stake in the MGM Grand Las Vegas and the Mandalay Bay to Vici Properties Inc., which owns the other 50.1% stake in the properties. Blackstone would receive $1.27 billion in cash, and Vici would assume Blackstone’s share of some $3 billion in debt. The sale would bring a profit of more than $700 million for Blackstone in less than three years.

Airbnb Inc. is launching a listing service for rental apartments with some of the biggest landlords and property managers in the country. The new service will feature more than 175 buildings where short-term sublets are allowed. Landlords who partner with the new listing service will get a share of the total booking revenue from Airbnb sublets—20% in most cases.

Hyatt Hotel Corp. said it would acquire Dream Hotel Group’s lifestyle hotel brands, including Dream Hotels, The Chatwal Hotels, and Unscripted Hotels. Hyatt would spend $125 million for the Dream Hotel Group’s dozen open hotels, with more than 1,700 guest rooms worldwide.

Royal Bank of Canada has agreed to buy the Canadian unit of the British banking and financial-services giant HSBC Holdings PLC for 13.5 billion Canadian dollars, equivalent to US$10 billion.

U.S. life insurers paid a record $100 billion in 2021 in death benefits, an 11% increase. The increase was on the heels of a 15% year-over-year rise in 2020, when death-benefit payments totaled $90.43 billion.

Fortress Investment Group has agreed to help finance Kushner Cos.’ unsolicited $4.3 billion bid to buy rival apartment building owner Veris Residential Inc.

Investor buying of homes tumbled 30% in the third quarter. Companies bought around 66,000 homes in the 40 markets tracked during the third quarter as compared with 94,000 homes during the same quarter a year ago.