REIT Earnings Preview: When The Tide Goes Out

April 25, 2023 | Hoya Capital

REIT Earnings Preview: When The Tide Goes Out Sector Report Apr 25 Written By Alex Pettee, CFA Real estate earnings season kicks into gear this week, and over the next month, we'll hear results from 175 equity REITs, 40 mortgage REITs, and dozens of housing industry companies. This report discusses the major high-level themes and metrics we'll be watching across each property sector. We're particularly focused on commentary regarding cap rates, acquisition prospects, and dividend sustainability.

The flat performance on the REIT Index this year hides some notably sharp bifurcations within the sector, with residential and industrial sectors posting notable outperformance, offset by weakness in office. Many well-capitalized REITs are equipped to "play offense" and take advantage of acquisition opportunities from weaker private players - but whether or not these typically-defensive REITs are ready to take a more aggressive tact remains a key focus. Most equity REITs still have a healthy buffer to protect current payout levels if macroeconomic conditions take a turn for the worse, but we'll be closely-monitoring dividend commentary in the office, mortgage, and healthcare REIT sectors.

READ THE FULL REPORT HERE Alex Pettee, CFA Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Stocks Slide • REIT Earnings • Housing Rebound Next Next Bed Bath Be-Gone • REIT Earnings • Week Ahead