S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.

Net lease transaction volume in the U.S. totaled $32.8 billion in the first half, outpacing the $27.1 billion recorded in the same period in 2021, Commercial Property Executive reported, citing data from JLL.

Industrial sector net-lease deals grew 22% year over year, the highest gain across all property types. Deals in the retail sector were up 10% from the 2021 first half, while office segment deals rose 7%.

First-quarter transactions accounted for most of the first-half volume as deals slowed in the second quarter.

The average net lease cap rate rose 20 basis points year over year to 6.3% for the office sector and 10 basis points to a 5.6% cap rate for the industrial sector. The retail sector logged a 20-basis point drop to a 5.8% cap rate. Rising borrowing costs are pushing net lease yields higher, according to the report.

Owners of assets with significant gains are expected to remain active sellers. Volatility and risk factors are on the rise as market participants deal with inflation and actions by the Federal Reserve, the report added.

CHART OF THE WEEK: REITs' Q2 funds from operations reach all-time high

⮞ U.S. REITs logged a record $19.1 billion funds from operations in the second quarter, 21.3% higher than a year ago, according to an analysis by S&P Global Market Intelligence.

⮞ Lodging and resorts posted the biggest annual jump in FFO, up 1,326% to $1.37 billion.

⮞ REIT stock performance, on the other hand, continued its downward trajectory during the period, reflecting the movement of the broader stock market.

Real estate trade

* Unibail-Rodamco-Westfield said it closed the sale of the Westfield Santa Anita regional mall in Arcadia, Calif., to an undisclosed commercial real estate investor with presence in the region. The French REIT owned 49% of the property, which traded for $537.5 million. The A-rated mall spans 1.48 million square feet and is 96% leased.

* VICI Properties Inc. will acquire an interest in the land and buildings associated with Rocky Gap Casino Resort in Flintstone, Md., from Golden Entertainment Inc. for roughly $203.9 million. Golden Entertainment will sell the casino's operations to Century Casinos Inc. for about $56.1 million. When the transaction closes, Rocky Gap will be added to the existing triple-net master lease between VICI Properties and Century.

* Private equity giant Blackstone Inc. sold an apartment complex in Riverside, Calif., for $102 million, largely below the approximately $145 million it paid for the property about three years ago, The Real Deal reported, citing public property records. Silver Star Real Estate acquired the 304-unit property at 3610 Banbury Drive.

Alliances

* Shopping center REITs Wheeler Real Estate Investment Trust Inc. and Cedar Realty Trust Inc. completed their merger Aug. 22. Cedar will no longer trade its common stock on the NYSE.

* Argyle Real Estate Partners and Sembler Investments formed a venture that will acquire more than $1.5 billion of multifamily assets across the Southeast region and Texas in the next two to three years.

Data Dispatch: US REIT same-store NOI growth slowed in Q2

Data Dispatch: Hotel REIT performance improves significantly in Q2

Data Dispatch: LaSalle cuts stakes in 28 REITs but beefs up Douglas Emmett in Q2

Data Dispatch: Cohen & Steers cuts stakes in more than 50% of REIT positions in Q2