Office Distress • Senior Housing Strength • Stocks Rebound

March 2, 2023 | Hoya Capital

Office Distress • Senior Housing Strength • Stocks Rebound Real Estate Daily Recap Mar 2 Written By U.S. equity markets rebounded Thursday despite a continued march higher in interest rates as investors parsed commentary from several Fed officials and stubbornly resilient employment and wage data. Rebounding from six-week lows and trimming its week-to-date declines to around 2%, the S&P 500 rebounded by 0.8% today while the Dow gained 342 points.

Real estate equities rebounded today despite the interest rate headwinds as earnings season wrapped-up. The Equity REIT Index gained 1.2% today with 15-of-18 property sectors in positive territory. Diversified Healthcare (DHC) - which plunged nearly 80% last year - soared 60% today after reporting solid fourth-quarter results driven by a recovery in its Senior Housing Operating ("SHOP") portfolio. Asset manager Blackstone (BX) was again in focus on reports that it defaulted on a half-billion-dollar loan on European office properties.

The day prior, its flagship privately-traded fund BREIT announced that it limited investor redemptions for a fourth straight month. Income Builder Daily Recap U.S. equity markets rebounded Thursday despite a continued march higher in interest rates as investors parsed commentary from several Fed officials and stubbornly resilient employment and wage data. Rebounding from six-week lows and trimming its week-to-date declines to around 2%, the S&P 500 rebounded by 0.8% today while the Dow gained 342 points.

Lifted by strong jobless claims data and negative revisions to fourth-quarter productivity data, the 10-Year Treasury Yield climbed another 8 basis points to close at 4.07% today - its highest since November - while the 2-Year Treasury Yield climbed to the highest since 2007. Real estate equities rebounded today despite the interest rate headwinds as earnings season wrapped-up. The Equity REIT Index gained 1.2% today with 15-of-18 property sectors in positive territory while the Mortgage REIT Index declined 0.5%.

Real Estate Daily Recap Best & Worst Performance Today Across the REIT Sector Today we published ...