Arlington Asset Investment Corp.

AAIC

Market cap $137M

MCLEAN, Va. , Dec. 13, 2023 /PRNewswire/ --  Arlington Asset Investment Corp. (NYSE: AAIC) ("Arlington") publicly announced today, in connection with the anticipated merger transaction with Ellington Financial Inc. (NYSE: EFC) ("Ellington Financial"), that it intends to voluntarily delist from the New York Stock Exchange (the "NYSE") Arlington's 6.75% Senior Notes due 2025 and 6.000% Senior Notes due 2026 (collectively, the "Senior Notes") and to deregister the Senior Notes under the Securities Exchange Act of 1934, as amended.

MCLEAN, Va. , Dec. 12, 2023 /PRNewswire/ -- Arlington Asset Investment Corp. (NYSE: AAIC) ("Arlington") announced today that its shareholders have voted to approve the proposed merger transaction with Ellington Financial Inc. (NYSE: EFC) ("Ellington Financial") at a special meeting of shareholders of Arlington held today.

U.S. equity markets notched a fifth-straight week of gains as benchmark interest rates continued a decisive retreat after economic data and comments from Fed officials fueled bets on a pending pivot. Advancing for a fifth-straight week since dipping into "correction territory" at the end of October, the S&P 500 gained another 0.8% on the week, while Mid-Caps and Small-Caps gained 2%. Lifted by the rate retreat, real estate equities were again the leaders this week. The Equity REIT Index rallied 5.0% this week, extending their rebound since late-October to nearly 20%.

Rates down, REITs up? Two years of persistent rate-driven pressure on residential and commercial real estate markets appears to finally be abating as the worst of pandemic-era inflationary pressures subside. This 'light-at-the-end-of-the-tunnel' comes as commercial property values were approaching the critical 20% drawdown level, a level that can result in cascading distress that extends beyond the weakest players. Not out of the woods, yet. Expectations of "Higher for Longer" are merely shifting to "High for Long" in which benchmark rates will remain materially above pre-pandemic levels into 2025.

U.S. equity markets extended their rebound to a third-straight week as benchmark interest rates dipped on economic data and corporate earnings reports showing a more distinct cooldown in economic activity. Gaining for a third-straight week and extending its rebound to nearly 10% since dipping into "correction territory" at the end of October, the S&P 500 gained another 2.4% this week. Lifted by the retreat in benchmark interest rates, real estate equities have roared back to life over the past three weeks. Equity REITs and Mortgage REITs each gained another 4.7%.

After covering the Winners of REIT Earnings Season last week, Part 2 of our Earnings Recap focuses on the worst-performing property sectors and common threads shared by these laggards. Unlike the second quarter, which saw a handful of poor reports and unexpectedly steep guidance and dividend cuts, there were no major 'bombshells' this earnings season. While there were upside standouts and some solid reports within these lagging property sectors, the losers of REIT earnings season included: Residential, Office, Mortgage, and Self-Storage REITs.