Bank Rescue • Stocks Stabilize • REIT Dividend Hikes

March 16, 2023 | Hoya Capital

Bank Rescue • Stocks Stabilize • REIT Dividend Hikes Real Estate Daily Recap Mar 16 Written By U.S. equity markets rebounded Thursday after a consortium of U.S. banks collaborated on a rescue package for regional lender First Republic in a bid to stave off further financial contagion. Continuing the seesaw action of the past week, the S&P 500 rebounded by 1.8% today, while the tech-heavy Nasdaq 100 rallied by 2.6%.

The Dow gained 372 points. Real estate equities lagged today as benchmark interest rates rebounded following a 50 basis point rate hike from the European Central Bank. Equity REITs declined 0.2%, but Mortgage REITs advanced. Another day, another handful of REIT dividend hikes. Park Hotels (PK) boosted its quarterly dividend to $0.15/share, a 25% boost from its prior rate of $0.12/share and apartment REIT Equity Residential (EQR) hiked its dividend by 6% to $0.66/share.

Mortgage REIT New York Mortgage (NYMT) surged more than 6% after announcing an upside stock buyback program to repurchase up to $250M in common stock and $100M in preferred stock. Income Builder Daily Recap U.S. equity markets rebounded Thursday after a consortium of U.S. banks collaborated on a rescue package for regional lender First Republic in a bid to stave off further financial contagion. Continuing the seesaw action of the past week, the S&P 500 rebounded by 1.8% today, while the tech-heavy Nasdaq 100 rallied by 2.6%.

The Dow gained 372 points. Real estate equities lagged today as benchmark interest rates rebounded following a 50 basis point rate hike from the European Central Bank. The Equity REIT Index declined 0.2% today with 13-of-18 property sectors in negative territory, but the Mortgage REIT Index gained 0.2%. Homebuilders rallied following better-than-expected home construction data and a retreat in mortgage rates. Despite having one of the continent's largest banks on the brink, the European Central Bank went forward with its telegraphed 50 basis point rate hike, which sparked a ...