Inflation Week • Deeper Inversion • REIT Earnings

August 8, 2022 | Hoya Capital

Inflation Week • Deeper Inversion • REIT Earnings Real Estate Daily Recap Aug 8 Written By U.S. equity markets finished mostly-higher Monday ahead of a critical week of inflation data which kicked-off today with encouraging data showing a sharp decline in consumer inflation expectations in July. Entering the session on a three-week winning streak, the S&P 500 retreated 0.1% today but the Mid-Cap 400 and Small-Cap 600 each posted gains of over 0.5%.

Real estate equities were among the best-performers sectors today as investors digested an upbeat slate of REIT earnings results over the last three weeks. The Equity REIT Index gained 0.9%. A critical week of inflation data started with some good news today as a New York Federal Reserve survey showed a sharp decline in consumer inflation expectations in July as recession concerns fueled significant declines in expectations of food prices, energy, and home prices over the survey horizon.

Digital Realty (DLR) was among the better performers today after it announced a deal to sell a $205M data center at a 5.2% cap rate and use the capital to pay down debt. We'll hear results this afternoon from Tanger Outlets (SKT) and National Health Investors (NHI), among others, as REIT earnings season concludes. Real Estate Daily Recap U.S. equity markets finished mostly-higher Monday ahead of a critical week of inflation data which kicked off today with encouraging data showing a sharp decline in consumer inflation expectations in July.

Entering the session on a three-week winning streak, the S&P 500 retreated 0.1% today but the Mid-Cap 400 and Small-Cap 600 each posted gains of over 0.5%. Real estate equities were among the best-performers sectors today as investors digested an upbeat slate of REIT earnings results over the last three weeks. The Equity REIT Index finished higher by 0.9% today with 17-of-18 property sectors in positive territory while the Mortgage REIT Index advanced 1.5%.

Bonds rebounded today following a sharp ...