Hawkish Fed • REIT Earnings • Office Demand Recovers

May 15, 2025 | Hoya Capital

Hawkish Fed • REIT Earnings • Office Demand Recovers Real Estate Daily Recap Apr 21 Written By U.S. equity markets finished broadly lower Thursday while bonds remained under pressure after Fed Chair Powell indicated that the Fed is likely to hike rates by 50 bps in its next meeting. Sliding throughout the session and giving up its week-to-date gains, the S&P 500 finished lower by 1.5% today while the Mid-Cap 400 declined 1.8% and the Small-Cap 600 slipped 1.4%.

Real estate equities were again among the outperformers on strong earnings result, but still finished lower as the Equity REIT Index slipped 0.7% with 18-of-19 property sectors in negative territory. Weighed down by concern over the impact of rising mortgage rates, homebuilder Tri Pointe (TPH) finished lower despite reporting solid results and boosting its full-year outlook. TPH commented that it's not "seeing a falloff in demand" but noted that supply chains remain an issue.

Results from cell tower REIT Crown Castle (CCI) and office REITs Brandywine (BDN) and SL Green (SLG) were roughly in-line with expectations. Office leasing demand has been surprisingly resilient despite the slow recovery in utilization rates. Income Builder Daily Recap We recently launched Hoya Capital Income Builder - a premier income-focused investment research service through Seeking Alpha Marketplace - that will be the new exclusive home of all of Hoya Capital's investment research.

Income Builder focuses on real income-producing asset classes that offer the opportunity for diversification, monthly income, capital appreciation, and inflation hedging. If you're not already on board, give us a try with a completely risk-free two-week trial and take a look around. U.S. equity markets finished broadly lower Thursday - sliding from early-session gains - while bonds remained under-pressure after Fed Chair Powell indicated that the Fed is likely to hike rates by 50 basis points in its next meeting.

Sliding throughout the session and giving up its week-to-date gains, the S&P 500 finished ...