REIT Earnings • SPR Release • Homebuilder Sentiment

October 18, 2022 | Hoya Capital

REIT Earnings • SPR Release • Homebuilder Sentiment Real Estate Daily Recap Oct 18 Written By U.S. equity and bond markets rebounded for a second-straight session Tuesday as a decent start to corporate earnings season and stabilization in global sovereign bond markets lifted markets from two-year-lows. Following gains of 2.7% on Monday, the S&P 500 advanced 1.2% today in a choppy session while the tech-heavy Nasdaq 100 advanced 0.8%. Real estate equities finished mostly higher today as long-term interest rates ticked lower with the Equity REIT Index advancing 1.1% today with 15-of-18 property sectors in positive territory.

Mortgage REITs gained 2%. Equity Lifestyle (ELS) kicked off REIT earnings season with a decent report in light of the Hurricane Ian uncertainty. ELS indicated that it'll incur a roughly 2% hit to FFO from the storm, but provided 2023 guidance pointing to record-high rent growth. A pair of mortgage REITs - AG Mortgage (MITT) and MFA Financial (MFA) - rallied 9% after reporting modest 5-7% book value declines in Q3 despite the historically brutal quarter for fixed income and mortgage-related securities.

Income Builder Daily Recap U.S. equity and bond markets rebounded for a second-straight session Tuesday as a decent start to corporate earnings season and stabilization in the global sovereign bond markets lifted markets from two-year lows. Following gains of 2.7% on Monday, the S&P 500 advanced 1.2% today in a choppy session while the tech-heavy Nasdaq 100 advanced 0.8%. Crude Oil prices dipped 2% on reports that the Biden administration plans to sell more oil from the U.S.

Strategic Petroleum Reserve in a bid to dampen fuel prices before next month's midterm elections. Real estate equities were also broadly higher today as long-term interest rates ticked marginally lower with the Equity REIT Index advancing 1.1% today with 15-of-18 property sectors in positive territory while the Mortgage REIT Index gained 1.8%. Bad news is good news? Homebuilders rallied 3% today despite a ...