Inflation Week • Geopolitical Tensions • REIT Transition Done

October 10, 2022 | Hoya Capital

Inflation Week • Geopolitical Tensions • REIT Transition Done Real Estate Daily Recap Oct 10 Written By U.S. equity markets declined for a fourth-day Monday as heightened geopolitical tensions and downward earnings revisions added to concerns over aggressive Fed-tightening ahead of a critical slate of inflation data. Erasing much of last week's modest gains, the S&P 500 finished lower by 0.8% today while the tech-heavy Nasdaq 100 dipped 1.0% to push its year-to-date declines to nearly 35%.

Real estate equities remained under pressure today - particularly technology REITs - with the Equity REIT Index declining another 1.0% today with 15-of-18 property sectors in negative territory. Ahead of a critical slate of inflation data throughout the week, comments from Fed Vice Chair Brainard and Chicago Fed President Evans were viewed as slightly less hawkish than recent commentary with both officials explicitly citing the risk of over-tightening. Veris Residential (VRE) - formerly known as Mack Cali - surged more than 10% today after it announced an agreement to sell Harborside 1, 2, and 3 in Jersey City for $420M as it nears the completion of its transition from an office REIT into a pure-play multifamily REIT.

Income Builder Daily Recap U.S. equity markets declined for a fourth day Monday as heightened geopolitical tensions and downward earnings revisions added to concerns over aggressive Fed tightening ahead of a critical week of inflation data. Erasing much of last week's modest gains, the S&P 500 finished lower by 0.8% today while the tech-heavy Nasdaq 100 dipped 1.0% to push its year-to-date declines to nearly 35%. The more-domestically-focused Mid-Cap 400 and Small-Cap 600 were outperformers today.

Real estate equities remained under pressure today - particularly technology REITs - with the Equity REIT Index declining another 1.0% today with 15-of-18 property sectors in negative territory while the Mortgage REIT Index dipped another 3%. Ahead of a critical slate of inflation data throughout the week, comments from Fed ...