REIT Earnings • Yields Retreat • Mega-Cap Tech Slump

October 26, 2022 | Hoya Capital

REIT Earnings • Yields Retreat • Mega-Cap Tech Slump Real Estate Daily Recap Oct 26 Written By U.S. equity markets were mixed Wednesday as weak mega-cap tech earnings were offset by downward pressure on interest rates following soft economic data and a "pivot" from the Canadian central bank. Snapping a three-session winning streak but still holding onto gains of 6% since the start of last week, the S&P 500 retreated 0.7% but the Mid-Cap and Small-Cap Indexes advanced.

Real estate equities were upside leaders for a second day as interest rates pulled back from multi-decade highs. Amid a busy stretch of earnings results, the Equity REIT Index finished fractionally higher. Sunbelt-focused office REIT Highwoods (HIW) rallied after reporting better-than-expected results and raising its full-year outlook, citing strong leading demand in its Sunbelt markets. Mortgage REIT Blackstone Mortgage (BXMT) - which focuses on floating-rate commercial lending - rallied 3% after reporting better-than-expected results and an increase in its Book Value Per Share.

Income Builder Daily Recap U.S. equity markets were mixed Wednesday as weak mega-cap tech earnings were offset by downward pressure on interest rates following soft economic data and a "pivot" from the Canadian central bank. Snapping a three-session winning streak but still holding onto gains of 6% since the start of last week, the S&P 500 retreated 0.7% today. The tech-heavy Nasdaq 100 dipped more than 2% but the Mid-Cap 400 and Small-Cap 600 each finished higher on the day.

Real estate equities were upside leaders for a second day as interest rates pulled back from multi-decade highs. Amid a busy stretch of earnings results, the Equity REIT Index finished fractionally higher today with 6-of-18 property sectors in positive territory while the Mortgage REIT Index gained 1.5%. Homebuilders finished lower after New Home Sales data showed a continued slowdown in activity amid the historic surge in mortgage rates. Large-cap technology names dragged on the major averages today following disappointing ...