Stocks Slide • Yields Jump • REIT Dividend Hike

February 21, 2023 | Hoya Capital

Stocks Slide • Yields Jump • REIT Dividend Hike Real Estate Daily Recap Feb 21 Written By U.S. equity markets slumped Tuesday while benchmark interest rates surged as concerns over persistent inflation were worsened by a ratcheting-up of geopolitical tensions and cautious commentary from retailers. Following declines of 0.2% last week, the S&P 500 dipped 2.0% today - its worst day since December - while the tech-heavy Nasdaq 100 fell 2.4% and the Dow slid nearly 700 points.

Real estate equities and other yield-sensitive segments were also under pressure today as benchmark interest rates climbed to the highest-levels of the year. The Equity REIT Index fell 2.0%. The busiest week of REIT earnings season kicked-off with a strong report from NexPoint Residential (NXRT) this morning. NXRT hiked its quarterly dividend by 10%, becoming the 25th REIT to raise its dividend this year. DiamondRock Hospitality (DRH) was also among the better-performers today after reporting solid results and providing a relatively upbeat outlook for 2023.

DRH reported that January was its best month since July with Revenue Per Available Room exceeding 2019-levels by 10%. Income Builder Daily Recap U.S. equity markets slumped Tuesday while benchmark interest rates surged as concerns over persistent inflation were worsened by a ratcheting-up of geopolitical tensions and cautious commentary from retailers. Following declines of 0.2% last week, the S&P 500 dipped 2.0% today - its worst day since December - while the tech-heavy Nasdaq 100 fell 2.4% and the Dow slid nearly 700 points.

Real estate equities and other yield-sensitive segments were also under pressure today as benchmark rates climbed to the highest levels of the year across the curve. The Equity REIT Index declined 2.0% today with all 18 property sectors in negative territory while the Mortgage REIT Index dipped 3.5% and Homebuilders declined 2.2%. Bonds were under pressure across the credit and maturity curve as the 10-Year Treasury Yield jumped another 13 basis points today ...