REIT Earnings • West Coast Weakness • Cellular Strength

August 1, 2023 | Hoya Capital

REIT Earnings • West Coast Weakness • Cellular Strength Daily Recap Aug 1 Written By Alex Pettee, CFA U.S. equity markets finished mostly lower Tuesday as investors analyzed a busy slate of corporate earnings results while benchmark interest rates marched higher despite a disappointing slate of economic data. Erasing modest gains on Monday, the S&P 500 slipped 0.3% today, but the Dow Jones Industrial Average gained 71 points, advancing for the 16th time in 17 sessions.

Real estate equities were mixed today amid the busiest 48-hour stretch of second-quarter earnings reports. The Equity REIT Index slipped 0.2% today, with 6-of-18 property sectors finishing in positive territory. After a strong start to office REIT earnings season, results over the past 24 hours have tempered the optimism a bit, particularly for West Coast markets. Paramount Group (PGRE) plunged 8% after reporting very weak results and significantly lowering its full-year outlook.

Midwest-focused apartment REIT CenterSpace (CSR) surged 6% after reporting strong results and significantly raising its full-year outlook. Cell tower REIT SBA Communications (SBAC) rallied 4% after also raising its outlook. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets finished mostly lower Tuesday as investors analyzed a busy slate of corporate earnings results while benchmark interest rates marched higher despite a disappointing slate of economic data this morning.

Erasing modest gains on Monday, the S&P 500 slipped 0.3% today, but the Dow Jones Industrial Average gained 71 points, advancing for the 16th time in 17 sessions. Benchmark yields pushed higher despite a weak JOLTs print - the first major jobs report of the busy week - with job openings falling to the lowest-level since April 2021, while PMI data showed a worsening manufacturing slump. The 10-Year Treasury Yield jumped nine basis points to 4.05%, while the policy-sensitive 2-Year Yield rose three basis points to 4.91%.

Real estate equities were mixed today amid the busiest 48-hour stretch of second-quarter earnings ...