Homebuilders Rally • Another Inflation Record • Dividend Hikes

January 13, 2022 | Hoya Capital

Homebuilders Rally • Another Inflation Record • Dividend Hikes Real Estate Daily Recap Jan 13 Written By Summary U.S. equity markets finished lower Thursday with technology stocks lagging once again after another record-high inflation report with the PPI Index showing nearly double-digit annual inflation in producer prices. Snapping a two-day rebound which followed a five-day skid, the S&P 500 slipped 1.4% today while the tech-heavy Nasdaq 100 slumped 2.4%. The 10-Year Yield remained just above 1.70%.

Residential REITs and homebuilders were again bright-spots today, but pressure on technology REITs dragged the Equity REIT Index lower by 0.4% despite 12-of-19 property sectors finishing in positive territory. Homebuilder KB Home (KBH) rallied more than 16% after reporting solid Q4 results and providing strong guidance which calls for 30% revenue growth in 2022. KBH delivered EPS growth of more than 70% in 2021, yet continues to trade at mid-single-digit P/E ratios.

Another handful of REITs hiked their dividends over the last 24 hours. UMH Properties (UMH) rallied more than 3% after it hiked its dividend by 5.3% while Seven Hills Realty (SEVN) rallied more than 7% today after it hiked its dividend by 67%. 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 lower Thursday with technology stocks lagging once again after another record-high inflation report with the PPI Index showing nearly double-digit annual inflation in producer prices.

Snapping a two-day rebound which followed a five-day skid, the S&P 500 slipped 1.4% today while the tech-heavy Nasdaq 100 slumped ...