Fed Hikes • Yields Dip • Blackstone Redemptions

March 31, 2023 | Hoya Capital

Fed Hikes • Yields Dip • Blackstone Redemptions Real Estate Daily Recap Feb 1 Written By U.S. equity markets rallied Wednesday after the Federal Reserve hiked benchmark interest rates by 25 basis points- a step-down from prior hikes- while acknowledging that "the disinflationary process has started." The first day of February saw a continuation of January's rebound with the S&P 500 advancing 1.1% today while the tech-heavy Nasdaq 100 gained 2.1%.

Real estate equities- which were among the hardest-hit sectors by aggressive monetary tightening- continued their strong start to the year. Equity REITs advanced 0.6% today with 16-of-18 property sectors advancing. Asset manager Blackstone's (BX) non-traded real estate platform - Blackstone Real Estate Income Trust ("BREIT") - told investors Wednesday that the fund again hit its monthly redemption limit, fulfilling just a quarter of the funds requested by investors. Office REIT Boston Properties (BXP) finished slightly higher today after reporting mixed results with fourth-quarter FFO topping estimates but revising lower its outlook for full-year 2023.

Income Builder Daily Recap U.S. equity markets rallied Wednesday after the Federal Reserve hiked benchmark interest rates by 25 basis points - a step-down from prior rate hikes- while acknowledging that "the disinflationary process has started." The first day of February saw a continuation of January's rebound with the S&P 500 advancing 1.1% today while the tech-heavy Nasdaq 100 gained 2.1%. The Dow added 7 points - its seventh advance in eight sessions.

Real estate equities - which were among the hardest-hit sectors by aggressive monetary tightening - continued their strong start to the year. The Equity REIT Index advanced 0.6% today with 16-of-18 property sectors in positive territory while the Mortgage REIT Index gained 2.0%. Homebuilders and the broader Hoya Capital Housing Index were again among the leaders as well. The less-hawkish-than-anticipated commentary from Fed Chair Powell - who used the term "disinflation" a handful of times in prepared remarks and subsequent responses - ...