REIT Sector Performance - The REIT sector rebounded in November with a +1.02% return, narrowing the year-to-date negative total return to -2.55% for the average REIT [1] - REITs outperformed the broader market in November, exceeding the returns of the Dow Jones Industrial Average (+0.5%), S&P 500 (+0.2%), and NASDAQ (-1.4%) [1] - The Vanguard Real Estate ETF (VNQ) achieved a return of +2.42% in November, significantly outperforming the average REIT [1] - The spread between the 2026 FFO multiples of large cap REITs (16.2x) and small cap REITs (12.8x) widened, with investors paying 26.6% more for large cap REITs [1] Property Type Performance - In November, 9 out of 18 property types averaged positive returns, with a 33.18% total return spread between the best (Advertising +22.32%) and worst (Data Centers -10.86%) performing property types [5][6] - Year-to-date, Health Care (+30.53%) and Advertising (+24.67%) are the only property types with double-digit positive returns, while Office (-18.35%) and Data Centers (-13.93%) have seen significant declines [7][10] Market Capitalization Insights - Mid cap REITs averaged gains of +3.53%, while small cap REITs gained +3.38%, contrasting with large cap REITs which only gained +0.32% [3] - The average P/FFO for the REIT sector increased from 13.5x to 13.7x during November, with 50% of property types experiencing multiple expansion [7] Individual Security Highlights - OUTFRONT Media (OUT) led the sector with a +33.01% return in November after strong Q3 earnings and raised guidance [9] - Office Properties Income Trust (OPI) faced a significant decline of -54.53% in November, following its Chapter 11 bankruptcy filing, bringing its year-to-date total return to -98.25% [10] Dividend Yield Insights - High dividend yields are a key attraction for investors in the REIT sector, with many REITs trading below their NAV, resulting in attractive yields [14][15]

Core Insights - Large U.S. corporate bankruptcies are projected to reach their highest level in 15 years, indicating significant stress within corporate America [1] Group 1: Bankruptcy Trends - The current pace of corporate bankruptcies suggests a troubling trend for the U.S. economy, with implications for public market investors [1]

Group 1: Overall Market Outlook - Companies in the S&P 500 are projected to post an 8.8% year-over-year increase in earnings for Q3, with strong earnings critical to sustaining current market levels [1] - The index's forward 12-month price-to-earnings ratio is at 22.8, above the five-year average of 19.9 and the ten-year average of 18.6 [1] - Earnings growth could surpass 13% for Q3, marking the fourth consecutive quarter of double-digit expansion [1] Group 2: Banking Sector Performance - The financial sector is expected to see a 13.2% year-over-year earnings growth, with estimated earnings climbing from $104.0 billion to $109.4 billion since June 30 [3] - Out of 75 companies in the financial sector, 53 have seen upward revisions to their earnings estimates, with 16 reporting increases of more than 10% [4] - All five industries within the financial sector are projected to post year-over-year growth, including Consumer Finance (+29%), Insurance (+17%), Capital Markets (+15%), Financial Services (+11%), and Banks (+9%) [5] Group 3: Banking Sector Trends - The U.S. banking sector has rebounded since April, supported by increased M&A activity and a favorable regulatory environment [6] - These tailwinds are expected to contribute to another strong quarter for the largest banks, with net interest margin expansion and fee-based businesses driving topline growth [6] - Analysts are flagging early signs of strain in consumer credit, including rising delinquencies in student and auto loans, alongside an increase in corporate bankruptcies [2]