Fed Not Done • Stocks Slide • REIT Earnings

November 2, 2022 | Hoya Capital

Fed Not Done • Stocks Slide • REIT Earnings Real Estate Daily Recap Nov 2 Written By U.S. equity markets declined for a third-day Wednesday after the Federal Reserve hiked rates by another 75 basis points while Chair Powell noted that rates will head "higher than previously expected." Pulling back for a third day following its best week since November 2020, the S&P 500 declined 2.5% today while the tech-heavy Nasdaq 100 dipped 3.4%.

Real estate equities were under similar pressure amid the busiest stretch of earnings season. Equity REITs finished lower by 2.8% today while Mortgage REITs pulled-back 2.4%. Homebuilders declined 2.9%. Net Lease REIT National Retail (NNN) was among the better-performers today after it reported better-than-expected results and raised its full-year FFO growth outlook to 9.4% - up 120 basis points from its prior outlook. Brixmor (BRX) also reported impressive results and hiked its dividend by 8%.

Storage REIT ExtraSpace (EXR) dipped after lowering its full-year FFO and NOI growth outlook by 70 basis points each, citing a combination of expense pressures and slower demand. Public Storage (PSA) was also under pressure despite raising its full-year outlook. Income Builder Daily Recap U.S. equity markets declined for a third-day Wednesday after the Federal Reserve hiked rates by another 75 basis points while Chair Powell noted that the "ultimate level" of rates will be "higher than previously expected.” Pulling back for a third day following its best week since November 2020, the S&P 500 declined 2.5% today while the tech-heavy Nasdaq 100 dipped 3.4%.

The Mid-Cap 400 and Small-Cap 600 each finished off by 3%. Despite the rate hike and hawkish rhetoric, the 10-Year Treasury Yield was little-changed today. Real estate equities were under similar pressure amid the busiest stretch of earnings season. The Equity REIT Index finished lower by 2.8% today with all 18 property sectors in negative territory while the Mortgage REIT Index declined 2.4%. Real Estate Daily ...