Recession Watch • REITs Rally • Earnings Beats

July 28, 2022 | Hoya Capital

Recession Watch • REITs Rally • Earnings Beats Real Estate Daily Recap Jul 28 Written By U.S. equity markets continued their post-Fed rally Thursday as data showing that the U.S. entered a technical recession in the first half of 2022 sent long-term benchmark interest rates to four-month-lows. Adding to gains of 2.6% yesterday and pushing its week-to-date gains to nearly 3%, the S&P 500 advanced another 1.2% today while the tech-heavy Nasdaq 100 gained 1%.

Real estate equities led the gains today after a very strong slate of earnings reports from residential and technology REITs- segments that had seen an influx of bears and short-sellers. Equinix (EQIX) rallied more than 8% today after reporting better-than-expected results driven by record-high levels of gross bookings in the first-half of the year. EQIX raised its full-year FFO outlook to 9.5% on a constant-currency basis. Invitation Homes (INVH) - the nation's largest housing owner - rallied 4.5% today after reporting strong results with an acceleration in rent growth in Q2 to an 11.8% blended rate - its strongest quarter on record while occupancy and turnover trends remain favorable.

Real Estate Daily Recap U.S. equity markets continued their post-Fed rally Thursday as data showing that the U.S. entered a technical recession in the first-half of 2022 sent long-term benchmark interest rates to their lowest levels since April. Adding to gains of 2.6% yesterday and pushing its week-to-date gains to nearly 3%, the S&P 500 advanced another 1.2% today while the tech-heavy Nasdaq 100 pushed its two-day rally to over 5%.

Real estate equities led the gains today after a very strong slate of earnings reports from residential and technology REITs - segments that had seen an influx of bears and short-sellers. The Equity REIT Index rallied 3.3% today with all 18 property sectors in positive territory while the Mortgage REIT Index gained 3.1%. The "bad news is good news" dynamic has been the theme over ...