Fed Ahead • REIT Dividend Hikes • Cannabis Compromise

September 19, 2022 | Hoya Capital

Fed Ahead • REIT Dividend Hikes • Cannabis Compromise Real Estate Daily Recap Sep 19 Written By U.S. equity markets rebounded Monday following their worst week since June while benchmark interest rates climbed to the highest levels since 2007 with all eyes on the Federal rate decision. Following a dip of more than 5% last week, the S&P 500 advanced 0.7% today powered by a late-day rally while the tech-heavy Nasdaq 100 gained 1.0%.

Real estate equities were mixed today with the Equity REIT Index lower by 0.1% with 9-of-18 property sectors in positive territory. Homebuilders gained 2.5% ahead of a busy week of housing data. Innovative Industrial (IIPR) - which has been slammed this year on concerns over credit and rent payment issues among its cannabis cultivator tenants - surged 12% today after disclosing in an 8-K last Friday that it reached a confidential settlement with Kings Garden which had defaulted on its rent and property management fees in July.

Another day, another pair of REIT dividend hikes. Hotel REIT Hersha Hospitality (HT) resumed its dividend that had been suspended since March 2020. STORE Capital (STOR) - which announced last week that it will be taken private - hiked its dividend by 6.5%, becoming the 108th REIT to raise its dividend this year. Real Estate Daily Recap U.S. equity markets rebounded Monday following their worst week since June while benchmark interest rates climbed to the highest levels since 2007 with all eyes on the Federal Reserve rate decision on Wednesday afternoon.

Following a dip of more than 5% last week, the S&P 500 advanced 0.7% today powered by a late-day rally while the tech-heavy Nasdaq 100 gained 1.0% following losses of nearly 6% last week. Real estate equities were mixed today with the Equity REIT Index finishing lower by 0.1% with 9 of 18 property sectors in positive territory led by a rebound from cannabis, timber, and hotel REITs. ...