Rail Strike Looms • PPI Cools • REIT Dividend Hike

September 14, 2022 | Hoya Capital

Rail Strike Looms • PPI Cools • REIT Dividend Hike Real Estate Daily Recap Sep 14 Written By U.S. equity markets rebounded Wednesday following their post-CPI plunge on Tuesday as PPI data painted a brighter inflation picture, showing a decline in producer prices for a second-straight month. Following its steepest single-day decline since June 2020, the S&P 500 rebounded by 0.3% today while the tech-heavy Nasdaq 100 advanced 0.8% following its 5.5% dip on Tuesday.

After outperforming during yesterday's carnage, real estate equities lagged today as the Equity REIT Index declined by 1.1% with 16-of-19 property sectors in negative territory while Mortgage REIT Index advanced 0.6%. The 10-Year Treasury Yield remained near its highest levels in fifteen years as concerns over a looming freight railroad strike - and its potentially devastating effects on still-fragile U.S. supply chains - negated a cooler-than-expected PPI report. Realty Income (O) - the largest net lease REIT - was among the better-performing REITs after raising raised its monthly dividend by 0.2% - one of 105 REITs that has raised its dividend this year.

Real Estate Daily Recap U.S. equity markets rebounded Wednesday following their post-CPI plunge on Tuesday as PPI data painted a brighter inflation picture, showing a decline in producer prices for a second-straight month. Following its steepest single-day decline since June 2020, the S&P 500 rebounded by 0.3% today while the tech-heavy Nasdaq 100 advanced 0.8% following its 5.5% dip on Tuesday. After outperforming during yesterday's carnage, real estate equities lagged today as the Equity REIT Index declined by 1.1% with 16-of-19 property sectors in negative-territory while Mortgage REIT Index advanced 0.6%.

Following a bond market rout in the wake of the hotter-than-expected CPI report, the 2-Year Treasury Yield and the 10-Year Treasury Yield each remained near their highest levels in fifteen years as concerns over a looming freight railroad strike - and its potentially devastating effects on still-fragile U.S. supply chains - ...