UK Disinflation • Office Default • REIT Earnings

July 19, 2023 | Hoya Capital

UK Disinflation • Office Default • REIT Earnings Daily Recap Jul 19 Written By Alex Pettee, CFA U.S. equity and bond markets extended their rally Wednesday while global benchmark interest rates retreated after UK inflation data showed similar disinflationary trends as exhibited across recent U.S. inflation reports. Closing at the highest levels since January 2022, the S&P 500 gained another 0.2% today. The Dow gained 109 points, posting an eight-straight day of gains.

Lifted by a continued retreat in benchmark interest rates, real estate equities were again among the leaders today ahead of a busy afternoon of earnings reports. Equity REITs gained 1.0%. Bloomberg reported yesterday that Starwood Capital defaulted on a $212.5M mortgage on a 29-story Atlanta office building, one of a half-dozen loan defaults in recent months from highly-leveraged private equity portfolios. As discussed in our REIT Earnings Preview, industrial REITs Rexford (REXR) and First Industrial (FR) report earnings results this afternoon, as does cell tower REIT Crown Castle (CCI) and office REIT SL Green (SLG).

Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity and bond markets extended their rally Wednesday while global benchmark interest rates retreated after UK inflation data showed similar disinflationary trends as exhibited across recent U.S. inflation reports. Closing at the highest levels since January 2022, the S&P 500 gained another 0.2% today, while the Mid-Cap 400 and Small-Cap 600 posted gains of 0.3% and 0.4%, respectively. The Dow gained 109 points, posting an eight-straight day of gains.

Lifted by a continued retreat in benchmark interest rates, real estate equities were again among the leaders today ahead of a busy afternoon of earnings reports. The Equity REIT Index gained 1.0% today, with 14-of-18 property sectors in positive territory, while the Mortgage REIT Index gained 1.4%. Homebuilders and the broader Housing Index finished higher as well today despite a modest downside surprise on new home construction data. Office : Bloomberg reported yesterday ...