REIT Earnings • Dividend Hikes • Home Sales Slump

October 20, 2022 | Hoya Capital

REIT Earnings • Dividend Hikes • Home Sales Slump Real Estate Daily Recap Oct 20 Written By U.S. equity and bond markets finished lower again Thursday as sovereign bond yields swelled to fifteen-year highs as investors parsed a busy slate of corporate earnings and ongoing European political instability. Declining for a second session but still hanging onto week-to-date gains of roughly 2%, the S&P 500 declined 0.6% today. Mid-Caps and Small-Caps were again laggards with 1.5% declines.

Real estate equities were among the better performers today amid a solid start to earnings season and a pair of dividend hikes. The Equity REIT Index declined 0.4% with 9-of-18 property sectors higher. Industrial REITs have been upside standouts early-on in earnings season. First Industrial (FR) and Rexford (REXR) each reported strong "beat and raise" results with head-spinning leasing spreads topping nearly 90%, exhibiting no signs of slowing demand for logistics space.

Cell tower REIT Crown Castle (CCI) reported solid Q3 results and provided a decent outlook for 2023 while hiking its dividend by 6.5%. Elsewhere, hotel REIT Apple Hospitality (APLE) boosted its dividend by another 14%. Income Builder Daily Recap U.S. equity and bond markets finished lower again Thursday as sovereign bond yields swelled to fifteen-year highs as investors parsed a busy slate of corporate earnings and ongoing European political instability.

Declining for a second session but still hanging onto week-to-date gains of roughly 2%, the S&P 500 declined 0.6% today but Mid-Caps and Small-Caps were once again laggards with a second-straight session of declines of over 1.5%. Real estate equities were among the better performers today amid a solid start to earnings season and a pair of dividend hikes. The Equity REIT Index declined 0.4% today with 9-of-18 property sectors in positive territory while the Mortgage REIT Index slipped 1.4%.

Another wave of hawkish rhetoric from the Federal Reserve pushed the 10-Year Treasury Yield higher by another 10 basis points to ...