Walmart Woes • Fed Ahead • REIT Earnings

July 26, 2022 | Hoya Capital

Walmart Woes • Fed Ahead • REIT Earnings Real Estate Daily Recap Jul 26 Written By U.S. equity markets declined Tuesday after downbeat economic data and weak results from Walmart raised questions about the health of the U.S. consumer ahead of the Fed rate hike decision. Following fractional gains on Monday, the S&P 500 declined by 1.2% today while the tech-heavy Nasdaq 100 dipped 2%, but declines were more muted among small and mid-cap equities.

Real estate equities were among the outperformers today following a relatively solid slate of earnings reports from residential and healthcare REITs and moderation in long-term interest rates. Lab space-focused Alexandria Real Estate (ARE) rallied more than 4% after reporting better-than-expected results and raising its full-year outlook as red-hot lab space demand showed few signs of cooling. Manufactured housing REIT Sun Communities (SUI) was also among the better performers today after reporting solid results and raising its full-year Core FFO growth outlook despite the anticipated slowdown in transient RV demand.

Real Estate Daily Recap U.S. equity markets declined Tuesday after downbeat economic data and weak results from Walmart raised questions about the health of the U.S. consumer ahead of the Fed rate hike decision on Wednesday afternoon. Following fractional gains on Monday, the S&P 500 declined by 1.2% today while the tech-heavy Nasdaq 100 dipped 2%, but declines were more muted among small and mid-cap equities. Real estate equities were among the outperformers today following a relatively solid slate of earnings reports from residential and healthcare REITs and moderation in long-term interest rates.

The Equity REIT Index gained 0.1% today with 8-of-18 property sectors in positive territory while the Mortgage REIT Index finished lower by 0.1%. Ahead of the FOMC rate decision tomorrow afternoon, the potential inflation-dampening effects of slowing consumer demand were a focus today after Walmart ( WMT ) - the nation's largest retailer - warned of weakening spending and noted that it has ...