Productivity Plunge • REIT Dividend Hike • CPI Ahead

August 9, 2022 | Hoya Capital

Productivity Plunge • REIT Dividend Hike • CPI Ahead Real Estate Daily Recap Aug 9 Written By U.S. equity markets slumped Tuesday after employment data showed a hotter-than-expected rise in unit labor costs and a historic annual decline in productivity ahead of a critical CPI inflation report. Following modest declines on Monday, the S&P 500 retreated 0.5% today while Mid-Cap 400 and Small-Cap 600 posted steeper declines of 1.0% and 1.6%, respectively.

Real estate equities were among the better-performers sectors today as a strong earnings season wrapped up with several solid reports from small-cap REITs. The Equity REIT Index finished higher by 0.4%. Spirit Realty (SRC) gained 1% after the net lease REIT hiked its dividend by 4%, becoming the 86th REIT to raise its dividend this year. Tanger Outlets (SKT) advanced after reporting decent results and raising its full-year NOI and FFO growth outlook.

Small-cap mall owner Pennsylvania REIT (PEI) surged more than 15% today after reporting better-than-expected results including its first quarter of positive FFO since it emerged from Chapter 11 bankruptcy in November 2020. Real Estate Daily Recap U.S. equity markets slumped Tuesday after employment data showed a hotter-than-expected rise in unit labor costs and a historic annual decline in productivity ahead of a critical CPI inflation report tomorrow morning. Following modest declines on Monday, the S&P 500 retreated 0.5% today while Mid-Cap 400 and Small-Cap 600 posted steeper declines of 1.0% and 1.6%, respectively.

Real estate equities were among the better-performers sectors today as a strong earnings season wrapped-up with another dividend hike and several solid reports from small-cap REITs. The Equity REIT Index finished higher by 0.4% today with 10-of-18 property sectors in positive territory while the Mortgage REIT Index declined 0.8%. Following a bit of positive inflation-related news on Monday with Fed survey data showing a steep decline in consumer inflation expectations, the news was less upbeat today as the BLS reported that U.S. ...