REIT Rebound • Tanger Hikes Dividend • Recession Warnings

October 11, 2022 | Hoya Capital

REIT Rebound • Tanger Hikes Dividend • Recession Warnings Real Estate Daily Recap Oct 11 Written By U.S. equity markets remained under pressure Tuesday as benchmark interest rates continued to march higher ahead of a critical slate of inflation data and the start of corporate earnings season. Declining for the fifth straight session, the S&P 500 declined another 0.7% today while the tech-heavy Nasdaq 100 dipped 1.4% to the lowest level since July 2020.

Real estate equities finally caught a bid after several days of relentless selling pressure underperformance. The Equity REIT Index advanced 1.1% today with 15-of-18 property sectors in positive territory. The Mortgage REIT Index surged nearly 7% following a slate of updates from Annaly, AGNC, and Dynex that showed that book value declines were less catastrophic than feared in the third quarter. Tanger Outlets (SKT) rallied 5% after it hiked its quarterly dividend by 20% to $0.22/share, representing a forward yield of roughly 5.95%.

For Tanger, it's the second dividend hike this year, but its payout remains well below the pre-pandemic quarterly rate of $0.36 paid in 2019. Income Builder Daily Recap U.S. equity markets remained under pressure Tuesday as benchmark interest rates continued to march higher ahead of a critical slate of inflation data and the start of corporate earnings season. Declining for the fifth straight session and erasing what was left of its two-day JOLTs rally last week, the S&P 500 declined another 0.7% today while the tech-heavy Nasdaq 100 dipped 1.4% to the lowest level since July 2020.

The more-domestically-focused Mid-Cap 400 and Small-Cap 600, however, finished higher on the day. Real estate equities finally caught a bid after several days of relentless selling pressure underperformance. The Equity REIT Index advanced 1.1% today with 15-of-18 property sectors in positive territory while the Mortgage REIT Index surged nearly 7% following a slate of updates that showed that book value declines were less catastrophic than feared ...