Inflation Soars • REIT Dividend Hikes • Earnings Analysis

February 10, 2022 | Hoya Capital

Inflation Soars • REIT Dividend Hikes • Earnings Analysis Real Estate Daily Recap Feb 10 Written By U.S. equity markets finished sharply lower Thursday after a hotter-than-expected CPI inflation report sent interest rates to post-pandemic highs and likely accelerated the Fed's plans for monetary tightening. Erasing its week-to-date gains, the S&P 500 slid 1.8% today while the tech-heavy Nasdaq 100 dipped back into "correction territory" with declines of 2.3%. Real estate equities slumped today amid rising rate concerns as the Equity REIT Index declined 2.4% today with 18-of-19 property sectors in negative territory while the Mortgage REIT Index declined 1.9%.

Consumer prices surged at the fastest pace in nearly four decades in January with the CPI index rising by 7.5% year-over-year – hotter than consensus estimates. Food, rent, and energy costs drove the gains with no clear signs of a peak yet. A pair of REITs boosted their dividends over the last 24 hours as REIT earnings season continues its positive trend. Even battered mall REIT Macerich gained today after reporting strong foot traffic during the holiday season.

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U.S. equity markets finished sharply lower Thursday after a hotter-than-expected CPI inflation report sent interest rates to post-pandemic highs and likely accelerated the Fed's plans for monetary tightening. Erasing its week-to-date gains, the S&P 500 slid 1.8% today while the tech-heavy Nasdaq 100 dipped back into "correction territory" with declines of 2.3%. Mid-Cap and Small-Caps were lower by 1.4%. Real estate equities slumped ...