Jobs Surprise • Pivot Pushback • REIT Earnings

August 5, 2022 | Hoya Capital

Jobs Surprise • Pivot Pushback • REIT Earnings Real Estate Daily Recap Aug 5 Written By U.S. equity markets were mixed Friday after a surprisingly strong payrolls report cast doubt on the likelihood of a "Fed pivot" towards less aggressive tightening, sending benchmark interest rates sharply higher. The S&P 500 retreated 0.2% today but managed to hold onto modest weekly gains of 0.3% - its third-straight week of gains. Mid-Caps posted gains of 0.6% today while the Nasdaq lagged.

Real estate equities were among the better-performers for a second day following a strong slate of earnings reports and another pair of dividend hikes. The Equity REIT Index gained 0.3%. CubeSmart (CUBE) - which we named as one of our three "Best Ideas in Real Estate" last month - rallied nearly 4% today after reporting stellar earnings results and significantly raising its full-year FFO and NOI outlook. Mortgage REIT Great Ajax (AJX) hiked its dividend for the second time this year.

Small-cap mREIT Western Asset (WMC) surged nearly 20% today after announcing that it's exploring a potential sale. WMC trades at a nearly 40% discount to its reported book value. Real Estate Daily Recap U.S. equity markets were mixed Friday after a surprisingly strong payrolls report cast doubt on the likelihood of a "Fed pivot" towards less aggressive tightening, sending benchmark interest rates sharply higher. The S&P 500 retreated 0.2% today but managed to hold onto modest weekly gains of 0.3% - its third-straight week of gains.

The Small-Cap 600 and Mid-Cap 400 each finished higher by 0.5% while the tech-heavy Nasdaq 100 dipped 0.8%. Real estate equities were among the better-performers for a second day following a strong slate of earnings reports and another pair of dividend hikes. The Equity REIT Index finished higher by 0.3% today with 11-of-18 property sectors in positive territory while the Mortgage REIT Index advanced 0.3%. The critical nonfarm payrolls data report this morning showed ...