Rents Soaring • REIT Earnings • Job Losses

February 2, 2022 | Hoya Capital

Rents Soaring • REIT Earnings • Job Losses Real Estate Daily Recap Feb 2 Written By Summary U.S. equity markets gained for the fourth-straight day as strong corporate earnings reports lifted investor optimism while a weak ADP employment report eased upward pressure on interest rates. Back within about 4% of record-highs after dipping into correction territory last week, the S&P 500 advanced 1.0% today while the Mid-Cap 400 finished flat and the Small-Cap slipped 0.5%.

Real estate equities were among the leaders today ahead of a busy afternoon of earnings results. The Equity REIT Index gained 1.3% today with 16-of-19 property sectors in positive territory. Equity Residential (EQR) rallied more than 4% after reporting solid Q4 results and providing very strong guidance for 2022 which calls for 12% same-store NOI growth and 15% FFO growth as rental rates continue to soar by double-digit rates. DR Horton (DHI) gained 1.5% after reporting strong results and boosting its 2022 full-year outlook.

DHI reported year-over-year revenue growth of more than 20% - driven by a 17% increase in deliveries - and now sees 26% revenue growth for 2022. Income Builder Daily Recap We recently launched Hoya Capital Income Builder - a premier income-focused investment research service through Seeking Alpha Marketplace - that will be the new exclusive home of all of Hoya Capital's investment research. Income Builder focuses on real income-producing asset classes that offer the opportunity for diversification, monthly income, capital appreciation, and inflation hedging.

If you're not already on board, give us a try with a completely risk-free two-week trial and take a look around. U.S. equity markets gained for the fourth-straight day as strong corporate earnings reports - today from Google and DR Horton - lifted investor optimism while a weak ADP employment report eased pressure on interest rates. Back within about 4% of record-highs after briefly dipping into correction territory last week, the S&P 500 advanced another 1.0% today ...