Yields Dip • Housing Rebounds • REIT Dividends

February 15, 2023 | Hoya Capital

Yields Dip • Housing Rebounds • REIT Dividends Real Estate Daily Recap Dec 7 Written By U.S. equity markets finished lower for a fifth-day Wednesday even as long-term interest rates dipped to three-month lows as investors weighed recession worries against encouraging news on the inflation front. Extending its declines to nearly 3.5% on the week, the S&P 500 dipped another 0.2% today while the Nasdaq 100 declined 0.4%. Real estate equities were an area of strength today with the Equity REIT Index advancing 0.2% with 13-of-18 property sectors in positive territory while the Mortgage REIT Index gained 0.9%.

Homebuilders and the broader Hoya Capital Housing Index rallied after stronger-than-expected results from luxury builder Toll Brothers and data showing that mortgage rates declined for a fourth-straight week. Self-storage REIT CubeSmart (CUBE) - which we own in the REIT Dividend Growth Portfolio - hiked its quarterly dividend by 14%. INDUS Realty (INDT) hiked its payout by 13%. Income Builder Daily Recap U.S. equity markets finished lower for a fifth-day Wednesday even as long-term interest rates dipped to three-month lows as investors weighed the risk of recession against encouraging news on the inflation front.

Extending its declines to nearly 3.5% on the week, the S&P 500 dipped another 0.2% today while the Nasdaq 100 declined 0.4%. Real estate equities were an area of strength today with the Equity REIT Index advancing 0.2% with 13-of-18 property sectors in positive territory while the Mortgage REIT Index gained 0.9%. Homebuilders and the broader Hoya Capital Housing Index rallied after stronger-than-expected results from luxury builder Toll Brothers and data showing that mortgage rates declined for a fourth-straight week.

Another day, another encouraging inflation report. Data from the Labor Department this morning showed that Unit Labor Costs rose at just a 2.4% rate in the third quarter - lower than the initial estimate of 3.5% and down sharply from the double-digit rates seen in the first-half of 2022. ...