REIT Earnings • Rates Decline • Builders Rebound

July 21, 2022 | Hoya Capital

REIT Earnings • Rates Decline • Builders Rebound Real Estate Daily Recap Jul 21 Written By U.S. equity markets continued their best three-day rally since May, lifted by a solid slate of corporate earnings reports and a decline in inflation expectations following a higher-than-expected ECB rate hike. Extending its week-to-date gains to 3.5%, the S&P 500 advanced another 1.0% today while the tech-heavy Nasdaq 100 rallied 1.4% to push its weekly gains to over 5%.

Real estate equities were broadly higher today as well following a very better-than-expected slate of earnings reports across the homebuilder, industrial, and technology REIT sectors. DR Horton (DHI) - the nation's largest homebuilder - rallied nearly 4% after reporting results that were not as weak as analysts feared, commenting that its "still seeing a very good level of core demand out there." First Industrial (FR) - which we own in the REIT Dividend Growth Portfolio - was among the leaders today after reporting stellar results and significantly raising its full-year outlook as industrial real estate demand has shown few signs of slowing.

Income Builder Daily Recap U.S. equity markets advanced Thursday - posting their best three-day rally since May - lifted by a solid slate of corporate earnings reports and a decline in inflation expectations following a higher-than-expected ECB rate hike. Extending its week-to-date gains to 3.5%, the S&P 500 advanced another 1.0% today while the tech-heavy Nasdaq 100 rallied 1.4% to push its weekly gains to over 5%. Real estate equities were broadly higher today as well following a very better-than-expected slate of earnings reports across the homebuilder, industrial, and technology REIT sectors.

The Equity REIT Index gained 1.0% today with 14-of-18 property sectors in positive territory while the Mortgage REIT Index gained 1.0%. Homebuilders and the broader Hoya Capital Housing Index were among the leaders following strong results from DR Horton, which noted that it is still seeing a "good level of core ...