PMI Plunge • REIT Earnings • Yields Retreat

July 22, 2022 | Hoya Capital

PMI Plunge • REIT Earnings • Yields Retreat Real Estate Daily Recap Jul 22 Written By U.S. equity markets slipped Friday following three days of gains while interest rates declined after PMI data in both the U.S. and Eurozone showed an unexpectedly sharp contraction in economic activity. Still managing to hang onto gains of 2.5% for the week, the S&P 500 retreated by 0.9% today while the tech-heavy Nasdaq 100 dipped nearly 2% to trim its weekly.

Real estate equities and other yield-sensitive market segments were among the outperformers today as the benchmark 10-Year Treasury Yield dipped to the lowest level since late May. The US PMI Composite Output Index dipped to 47.5 in July, down notably from 52.3 in June - marking the sharpest decline since May 2020 as both manufacturers and service providers reported subdued demand conditions. Alpine Income (PINE) was among the leaders today after reporting strong results and raising its full-year outlook while noting that private market valuations of net lease assets remain firm.

Income Builder Daily Recap U.S. equity markets slipped Friday following three days of gains while benchmark interest rates dipped after PMI data in both the U.S. and Eurozone showed an unexpectedly sharp contraction in economic activity. Still managing to hang onto gains of 2.5% for the week, the S&P 500 retreated by 0.9% today while the tech-heavy Nasdaq 100 dipped nearly 2% to trim its weekly gains to 3.5%. Real estate equities and other yield-sensitive market segments were among the outperformers today as the benchmark 10-Year Treasury Yield dipped to the lowest level since late May.

The Equity REIT Index gained 0.5% today with 13-of-18 property sectors in positive territory while the Mortgage REIT Index slipped 0.5%. Economic activity contracted sharply in both the U.S. and Eurozone in July according to Flash PMI data from S&P Global released this morning. The US PMI Composite Output Index dipped to 47.5 in July, down ...