Stocks Slump • Pot Problems • Redemption Rush

December 16, 2022 | Hoya Capital

Stocks Slump • Pot Problems • Redemption Rush Real Estate Daily Recap Jan 19 Written By U.S. equity markets declined for a third-straight session Thursday as investors parsed a downbeat slate of earnings reports alongside another round of hawkish Fed rhetoric and lukewarm economic data. Extending its week-to-date decline to 2.5%, the S&P 500 slipped 1.6% today while the tech-heavy Nasdaq 100 fell 1.0%. The 10-Year Treasury Yield remained near three-month lows at 3.40%.

Real estate equities were among the better-performers with the Equity REIT Index posting declines of 0.5% with 3-of-18 property sectors in positive territory while the Mortgage REIT Index slipped 0.6%. Innovative Industrial (IIPR) slumped after reporting worsening rent collection issues as its cannabis cultivators - particularly smaller private single-state operators - continue to struggle with headwinds from lower pot prices and challenging financing conditions. Office REIT Vornado Realty (VNO) dipped 4% after it reduced its quarterly dividend by 29%.

Asset manager KKR (KKR) announced that it would limit redemptions out of its private real estate fund after it saw requests for redemptions exceed its quarterly limit. Income Builder Daily Recap U.S. equity markets declined for a third-straight session Thursday as investors parsed a downbeat slate of earnings reports alongside another round of hawkish Fed rhetoric and lukewarm economic data. Extending its week-to-date decline to 2.5%, the S&P 500 slipped 1.6% today while the tech-heavy Nasdaq 100 fell 1.0%.

The 10-Year Treasury Yield remained near three-month lows at 3.40%. Real estate equities were among the better-performers with the Equity REIT Index posting declines of 0.5% with 3-of-18 property sectors in positive territory while the Mortgage REIT Index slipped 0.6%. Ahead of the start of their "quiet period" on Friday, Fed Governor Brainard echoed hawkish commentary from Fed officials earlier this week, reiterating that policy rates will "need to be sufficiently restrictive for some time" to tame inflation.

While inflation data has exhibited an encouraging cooling trend amid ...