Dovish Hike? • Markets Rally • REIT Earnings

July 27, 2022 | Hoya Capital

Dovish Hike? • Markets Rally • REIT Earnings Real Estate Daily Recap Jul 27 Written By U.S. equity markets rallied Wednesday after the Fed indicated that the path of future hikes may be less aggressive amid recent signs of slowing economic growth and cooling price pressures. Rebounding from yesterday's declines, the S&P 500 advanced 2.6% today while earnings beats from several mega-cap tech firms helped to propel the tech-heavy Nasdaq 100 to gains of more than 4%.

Real estate equities and other more-defensive market segments were generally laggards today despite a strong slate of REIT earnings results and a continued retreat in long-term interest rates. A trio of Coastal apartment REITs reported very strong "beat-and-raise" results yesterday afternoon, each of which reporting rent growth on new leases of around 20% in Q2 as rents have shown few signs of cooling despite the slowdown in the homeownership markets.

Results from a handful of office REITs were also surprisingly solid with Boston Properties and Paramount each raising their full-year outlook. Shopping center REIT Retail Opportunity also reported very strong results. Real Estate Daily Recap U.S. equity markets rallied Wednesday after the Fed indicated that the path of future hikes may be less aggressive than the "unusually large" increases in the past two months amid signs of slowing economic growth and cooling price pressures.

Rebounding from yesterday's declines, the S&P 500 advanced 2.6% today while earnings beats from several mega-cap tech firms helped to propel the tech-heavy Nasdaq 100 to gains of more than 4%. Real estate equities and other more-defensive market segments were generally laggards today despite a strong slate of REIT earnings results and a continued retreat in long-term interest rates. The Equity REIT Index advanced 0.6% today with 13-of-18 property sectors in positive territory while the Mortgage REIT Index gained 2.6%.

The post-Fed rally was broad-based with stocks, bonds, and commodities rallying in synchrony, a notable departure from the correlations ...