REIT Dividend Hikes • PPI Cools • Rally Fizzles

August 11, 2022 | Hoya Capital

REIT Dividend Hikes • PPI Cools • Rally Fizzles Real Estate Daily Recap Aug 11 Written By U.S. equity markets finished little-changed Thursday - erasing an early-session gain following another cooler-than-expected inflation report - amid investor skepticism over the sustainability and pace of cooling inflation. Following gains of more than 2% yesterday, the S&P 500 slipped 0.1% today but the Mid-Cap 400 and Small-Cap 600 each held onto gains of 0.6% while technology stocks lagged.

Real estate equities were mixed as well today as strong gains from pro-cyclical property sectors offset weakness from technology REITs. The Equity REIT Index slipped 0.2% with 11-of-18 property sectors. Kite Realty (KRG) - which last week we named one of our three "Best Ideas in Real Estate" - was among the leaders today after it raised its quarterly dividend for the third time this year to $0.22/share, a 4.8% increase from its prior dividend and a 33% increase from its third quarter dividend last year.

Investors received more good news on the inflation front as the wholesale prices fell in July for the first time in two years as plunging commodities prices resulting from slowing global economic growth cooled the pace of inflation. Real Estate Daily Recap U.S. equity markets finished little-changed Thursday - erasing an early-session gain following another cooler-than-expected inflation report - amid investor skepticism over the sustainability and pace of cooling inflation.

Following gains of more than 2% yesterday, the S&P 500 slipped 0.1% today but the Mid-Cap 400 and Small-Cap 600 each held onto gains of 0.6%. Real estate equities were mixed as well today as strong gains from pro-cyclical property sectors offset weakness from technology REITs. The Equity REIT Index slipped 0.2% with 11-of-18 property sectors in positive territory while the Mortgage REIT Index declined 0.2% while homebuilders and the broader Hoya Capital Housing Index delivered a second day of outperformance.

Following the cooler-than-expected CPI report on Wednesday, investors ...