Fed Downshift • REIT Dividend Hikes • C-Suite Shakeups

February 15, 2023 | Hoya Capital

Fed Downshift • REIT Dividend Hikes • C-Suite Shakeups Real Estate Daily Recap Dec 14 Written By U.S. equity markets retreated Wednesday after the Federal Reserve hiked interest rates by another 50 basis points- a downshift from the prior meeting- but signaled that more hikes are still to come. Snapping a two-day streak of gains, the S&P 500 slipped 0.6% on the day while the tech-heavy Nasdaq 100 declined 0.7%.

The 10-Year Treasury Yield finished little-changed at 3.50%. Real estate equities were mostly lower on the session as well. Equity REITs slipped 0.7% while Mortgage REITs declined 0.8%. Homebuilders gained on data showing a rebound in mortgage applications. Another day, another wave of REIT dividend hikes. Mid-America Apartments (MAA) hiked its quarterly dividend by 12% while net lease REIT Realty Income (O) raised its monthly dividend by 0.2%. Digital Realty (DLR) dipped 4% today after the company announced that it would replace CEO Bill Stein with its current CFO Andy Power at the end of the year.

DLR has underperformed its peer Equinix (EQIX) over most recent measurement periods. Income Builder Daily Recap U.S. equity markets retreated Wednesday after the Federal Reserve hiked interest rates by another 50 basis points - a downshift from prior meetings - but signaled that more rate hikes were still to come. Snapping a two-day streak of gains, the S&P 500 slipped 0.6% on the day while the tech-heavy Nasdaq 100 declined 0.7%.

Rate markets had a muted response to the Fed's rate decision with the 10-Year Treasury Yield finishing little-changed at 3.50%. Real estate equities were also mostly lower on the session with the Equity REIT Index slipping 0.7% today with 13-of-18 property sectors in negative-territory while the Mortgage REIT Index finished lower by 0.8%. Homebuilders eked out another gain of 0.2% on data showing a rebound in mortgage applications amid the recent pullback in rates.

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