Taiwan Tensions • Yields Jump • REIT Earnings

August 2, 2022 | Hoya Capital

Taiwan Tensions • Yields Jump • REIT Earnings Real Estate Daily Recap Aug 2 Written By U.S. equity markets slumped Tuesday as long-term benchmark interest rates rebounded from four-month lows amid concerns over heightened tensions with China amid a Taiwan visit from the U.S. House Speaker. Pushing its week-to-date declines to roughly 1%, the S&P 500 slipped 0.5% today while the Mid-Cap 400 declined 0.9% and the tech-heavy Nasdaq 100 declined 0.2%.

Real estate equities were among the laggards today - pressured by the reversal in interest rates - ahead of the busiest 48-hour stretch of REIT earnings reports. Fixed income securities across the credit and maturity curve were under pressure today as investors worried that the Taiwan visit by the Speaker could inflame tensions between Beijing and Washington and potentially further disrupt supply chains and prolong the inflationary pressure. Mall REIT Simon Property (SPG) slumped nearly 3% despite raising its full-year outlook and hiking its dividend for the third time this year, citing "extremely strong" demand for its space that drove a third-straight quarter of increases in its average bases rent.

Real Estate Daily Recap U.S. equity markets slumped Tuesday as long-term benchmark interest rates rebounded from four-month lows amid concerns over heightened tensions with China amid a Taiwan visit from the U.S. House Speaker. Pushing its week-to-date declines to roughly 1%, the S&P 500 slipped 0.5% today while the Mid-Cap 400 declined 0.9% and the tech-heavy Nasdaq 100 declined 0.2%. Real estate equities were among the laggards today - pressured by the reversal in interest rates - ahead of the busiest 48-hour stretch of REIT earnings reports.

The Equity REIT Index declined 1.3% today with all 18 property sectors in negative territory while the Mortgage REIT Index slumped 3.4%. Fixed income securities across the credit and maturity curve were under renewed pressure today as investors worried that the Taiwan visit by U.S. House Speaker Nancy Pelosi could inflame ...