Tech Wreck • REIT Earnings • Soft GDP Report

October 27, 2022 | Hoya Capital

Tech Wreck • REIT Earnings • Soft GDP Report Real Estate Daily Recap Oct 27 Written By U.S. equity markets finished mostly-lower Thursday, repeating a pattern from the prior session as disappointing results from mega-cap tech names were partially offset by a retreat in interest rates. Declining for a second-session but clinging to week-to-date gains of 1.5%, the S&P 500 retreated 0.6% today. The tech-heavy Nasdaq 100 dipped nearly 2% but Mid-Caps and Small-Caps finished higher.

Real estate equities were upside leaders for a third day, lifted by a solid slate of earnings results and the retreat in longer-term interest rates with equity REITs advancing 0.1%. Hospital owner Medical Properties Trust (MPW) - a "battleground" REIT that has come into the cross-hairs of short-selling firms - rallied more than 7% today after reporting better-than-expected results and raising its full-year FFO growth target. Invitation Homes (INVH) slumped after reporting mixed results and trimming its full-year outlook, citing a hit from higher-than-expected property taxes and higher bad debt expense from renters who have fallen behind on their rent.

Income Builder Daily Recap U.S. equity markets finished mostly lower Thursday, repeating a pattern from the prior session as disappointing results from mega-cap tech names were partially offset by a retreat in interest rates and bid for bonds. Declining for a second session but clinging to week-to-date gains of 1.5%, the S&P 500 retreated 0.6% today. The tech-heavy Nasdaq 100 dipped nearly 2% but the Mid-Cap 400 and Small-Cap 600 each finished higher.

Real estate equities were upside leaders for a third day, driven by a solid slate of earnings results from healthcare, apartment, and retail REITs and lifted by the continued retreat in longer-term interest rates from multi-decade highs. The Equity REIT Index finished higher by 0.1% today with 10-of-18 property sectors in positive territory while the Mortgage REIT Index gained 0.8%. Consistent with the "Bad News is Good News" theme, bonds caught ...