Relief Rally • Builders Bounce • REIT Internalization

June 21, 2022 | Hoya Capital

Relief Rally • Builders Bounce • REIT Internalization Real Estate Daily Recap Jun 21 Written By U.S. equity markets rebounded Tuesday as investors waded back into risk assets following last week's rout following better-than-expected housing data showing signs of demand resilience in the face of sharply-higher rates. Following its worst weekly decline since late 2020, the S&P 500 rallied 2.5% today but remains 21% below its recent highs. The tech-heavy Nasdaq 100 also gained 2.5% to trim its drawdown.

Real estate equities were broadly higher today as well today with the Equity REIT Index advancing 1.4% with 16-of-19 property sectors in positive territory while Mortgage REIT Index rallied over 4%. Mortgage REIT New Residential surged nearly 9% today after announcing last Friday afternoon that it will internalize its management structure which the company estimates will result in $60M-$65M of cost savings, or $0.12-$0.13 per diluted share per year. Homebuilder Lennar reported stronger-than-expected earnings results, noting resilient demand in the face of surging mortgage rates while managing to expand its margins despite the challenging inflationary environment.

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U.S. equity markets rebounded Tuesday as investors waded back into risk assets following last week's rout following better-than-expected housing data showing signs of demand resilience in the face of sharply higher rates. Following its worst weekly decline since late 2020, the S&P 500 rallied 2.5% today but remains 21% below its recent highs. The tech-heavy Nasdaq 100 also gained 2.5% to trim its drawdown back to ...