Office Dividend Cut • GDP Miss • REIT Earnings

April 27, 2023 | Hoya Capital

Office Dividend Cut • GDP Miss • REIT Earnings Daily Recap Apr 27 Written By Alex Pettee, CFA U.S. equity markets rallied Thursday while benchmark interest rates rebounded as investors evaluated another slate of strong corporate earnings results and softer-than-expected first-quarter GDP data. Real estate equities were among the leaders today, lifted by strong results from apartment, industrial, and mortgage REITs. The Equity REIT Index advanced 2.3% today, with 17-of-18 property sectors higher.

A pair of apartment REITs - Mid-America (MAA) and AvalonBay (AVB) - raised their full-year guidance, citing stronger-than-expected rental rate trends. Stag Industrial (STAG) and Kimco (KIM) also boosted guidance. Embattled hospital owner Medical Properties (MPW) - which has been in the cross-hairs of short-sellers for the past year - soared nearly 8% today after reporting better-than-feared results and maintaining its dividend. Office REIT Vornado (VNO) declined about 1% today after announcing that it will suspend its common stock dividends until the end of 2023, becoming the 12th REIT to reduce its dividend this year.

Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets rallied Thursday while benchmark interest rates rebounded as investors evaluated another slate of strong corporate earnings results and softer-than-expected first-quarter GDP data. Erasing its week-to-date declines and posting its best day since early January, the S&P 500 rallied 2.0% today while the tech-heavy Nasdaq 100 gained 2.7% and the Dow gained 524 points. Yields rose as a weak GDP print was offset by solid employment data and strong earnings results.

The 2-Year Treasury Yield jumped 12 basis points to 4.08%, while the 10-Year Treasury Yield rose 10 basis points to 3.53%. Real estate equities were among the leaders today, lifted by strong results from apartment, industrial, and mortgage REITs. The Equity REIT Index advanced 2.3% today, with 17-of-18 property sectors in positive territory, while the Mortgage REIT Index gained 3.0%. Real Estate Daily Recap Best & Worst Performance Today Across ...