February To Forget • REIT Earnings • Home Price Dip

February 28, 2023 | Hoya Capital

February To Forget • REIT Earnings • Home Price Dip Real Estate Daily Recap Feb 28 Written By U.S. equity markets declined Tuesday - erasing early-session gains in a choppy session - rounding out a rough month for markets amid renewed concern over risks of persistently elevated inflation. Erasing its gains on the week, the S&P 500 slipped 0.2% today, extending its February declines to 2.6%. The tech-heavy Nasdaq 100 declined 0.1% while the Dow slipped 232 points.

Real estate equities were mixed as earnings season winded down with the final handful of reports. Equity and Mortgage REITs finished lower by 0.2%, but Homebuilders were a bright-spot. Innovative Industrial (IIPR) surged 7% after reporting better-than-expected results and indicated that rent collection issues haven't spread beyond the previously-announced subset of tenant operators. U.S. home prices declined for a sixth-straight month in December, per Case Shiller Index data released this morning.

The average national home price is now about 5% below mid-2022 levels. Income Builder Daily Recap U.S. equity markets declined Tuesday - erasing early-session gains in a choppy session - rounding out a rough month for stocks and bonds amid renewed concern over risks of persistently elevated inflation. Erasing its gains on the week, the S&P 500 slipped 0.2% today, extending its February declines to 2.6%. The tech-heavy Nasdaq 100 declined 0.1% today while the Dow slipped 232 points.

The 10-Year Treasury Yield briefly flirted with the 4%-level - trading as high as 3.98% - before retreating later in the session and closing at 3.92%. Real estate equities were mixed as earnings season winded down with the final handful of reports. The Equity REIT Index slipped 0.2% today with 10-of-18 property sectors in negative territory while the Mortgage REIT Index declined 0.2%. Homebuilders gained 0.9% on data showing that U.S. home prices declined for a sixth-straight month in December with average national home prices now about 5% below mid-2022 levels.

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