Inflation Week • Stocks Rebound • REIT Earnings

February 13, 2023 | Hoya Capital

Inflation Week • Stocks Rebound • REIT Earnings Real Estate Daily Recap Feb 13 Written By U.S. equity markets rebounded Monday as 'inflation week' kicked-off with a relatively encouraging report from the New York Fed, which showed a sharp decline in consumer wage growth expectations. Rebounding from declines of 1% last week, the S&P 500 gained 1.0% today while the tech-heavy Nasdaq 100 advanced 1.6%, recovering after posting its first weekly decline of the year.

Real estate equities were broadly higher today as benchmark interest rates stabilized following a post-payrolls bounce. Equity REITs advanced 0.9% while Mortgage REITs gained 1.4%. The New York Fed Survey of Consumer Expectations report showed that households expected income growth of 3.3% over the next year - a historically sharp decline from the prior survey - while expectations of three-year inflation moderated to lowest-level since September 2020. Alexander's (ALX) - which owns six properties in NYC with Bloomberg LP as its primary tenant - gained about 1% after reporting in-line results this morning, noting that its full-year FFO declined 3% in 2022 due primarily to higher interest expenses on its variable rate debt.

Income Builder Daily Recap U.S. equity markets rebounded Monday as a busy week of inflation data kicked off with a relatively encouraging report from the New York Federal Reserve, which showed a sharp decline in wage growth expectations in January. Rebounding from declines of 1% last week, the S&P 500 gained 1.0% today while the tech-heavy Nasdaq 100 advanced 1.6%, recovering after posting its first weekly decline of the year.

Real estate equities were broadly higher today as benchmark interest rates stabilized following a post-payrolls bounce. The Equity REIT Index advanced 0.9% today with 16-of-18 property sectors in positive territory while the Mortgage REIT Index advanced 1.4% and Homebuilders rallied 2%. Ahead of the CPI report on Tuesday morning, the post-payrolls surge in Treasury yields paused after the release of the New ...