REIT Dividend Hikes • Yields Retreat • Inflation Cools

January 12, 2023 | Hoya Capital

REIT Dividend Hikes • Yields Retreat • Inflation Cools Real Estate Daily Recap Jan 12 Written By U.S. equity markets advanced Thursday after the closely-watched CPI inflation report showed continued signs of easing inflationary pressures, strengthening the case for the Fed to ease the pace of monetary tightening. Pushing its week-to-date gains to nearly 2.5%, the S&P 500 climbed 0.3% today while the Mid-Cap 400 and Small-Cap 600 each posted roughly 1% gains on the session.

Real estate equities continued their strong start to the year as benchmark interest rates retreated to the lowest-levels in four months. Equity REITs gained 1.2% while Mortgage REITs advanced 1.5%. Peak Inflation? Sure looks that way. Headline inflation declined in December on a month-over-month basis while the closely-watched CPI-ex-Shelter Index was negative for the fifth month in the past six. A trio of REITs hiked their dividends over the past 24 hours - UMH Properties (UMH), STAG Industrial (STAG), and Seven Hills Realty (SEVN).

Corporate Office Properties (OFC) announced a deal to acquire five data centers from Blackstone. Income Builder Daily Recap U.S. equity markets advanced Thursday after the closely-watched CPI inflation report showed continued signs of easing inflationary pressures, strengthening the case for the Fed to ease the pace of monetary tightening. Pushing its week-to-date gains to nearly 2.5%, the S&P 500 climbed 0.3% today while the Mid-Cap 400 and Small-Cap 600 each gained closer to 1%.

Real estate equities continued their strong start to the year as benchmark interest rates retreated to the lowest-levels in four months. The Equity REIT Index gained 1.2% with all 18 property sectors in positive territory while the Mortgage REIT Index advanced 1.5%. Homebuilders and the broader Hoya Capital Housing Index were also among the leaders today, buoyed by data showing that mortgage rates resumed their decline with the 30-year fixed-rate mortgage averaging 6.33%, down from a recent peak above 7.0%.

Peak Inflation? Sure looks that way. ...