FedEx Warning • Storage M&A • REIT Dividend Hikes

September 16, 2022 | Hoya Capital

FedEx Warning • Storage M&A • REIT Dividend Hikes Real Estate Daily Recap Sep 16 Written By U.S. equity markets slid again Friday- capping off their worst week since June- after a FedEx profit warning and weak consumer confidence data added to concern over looming Fed rate hikes. Diving more than 5% for the week and closing at its lowest level in nearly two months, the S&P 500 declined another 0.7% today while the tech-heavy Nasdaq 100 declined 0.6%.

Real estate equities were mixed today - but still among the laggards for the week - as the Equity REIT Index finished flat today with 10 of 19 property sectors in positive territory. Package delivery giant FedEx (FDX) plunged more than 20% today after warning that it will likely miss its profit target, citing weakness in Asia and challenges in Europe, and expects conditions to weaken further in the quarter ahead.

Extra Space (EXR) announced a $590M acquisition of Storage Express, which owns 107 storage properties in Indiana, Ohio, Illinois, and Kentucky. Elsewhere, NewLake Capital hiked its dividend while Xenia Hotels resumed its dividend following its June 2020 suspension. Real Estate Daily Recap U.S. equity markets slid again Friday - capping off their worst week since June - after a profit warning from FedEx and weak consumer confidence data added to concern over looming Fed rate hikes next week.

Diving more than 5% for the week and closing at its lowest level in nearly two months, the S&P 500 declined another 0.7% today while the tech-heavy Nasdaq 100 declined 0.6% to push its weekly losses to nearly 6%. Real estate equities were mixed today - but still among the laggards for the week - as the Equity REIT Index finished flat today with 10-of-19 property sectors in positive-territory while the Mortgage REIT Index finished fractionally higher.

Clashing with comments from Fed Chair Powell in late August referencing "strong" underlying economic momentum, ...