Yields March Higher • REIT Earnings • Hawkish Fed

March 1, 2023 | Hoya Capital

Yields March Higher • REIT Earnings • Hawkish Fed Real Estate Daily Recap Mar 1 Written By U.S. equity markets remained under pressure Wednesday as benchmark interest rates continued to march higher following hawkish Fed commentary and manufacturing PMI data showing a mild reacceleration in price pressures. Closing at its lowest-level in nearly six weeks, the S&P 500 slipped 0.5% today while the tech-heavy Nasdaq 100 dipped 0.8% to its lowest-level since late January.

Rate concerns kept downward pressure on real estate equities today, with the Equity REIT Index slipping another 1.3% with 15-of-18 property sectors in negative territory. Mortgage REITs slipped 2.2%. Xenia Hotels (XHR) was among the leaders today after reporting strong results, noting that its Revenue Per Available Room ("RevPAR") was 0.6% above its 2019-comparable - its first quarter above pre-pandemic levels - and reported strong demand trends in early 2023.

UMH Properties (UMH) dipped more than 7% after reporting mixed results, noting that its full-year FFO declined 2.3% in 2022 as higher financing costs and higher property-level expenses offset another relatively strong year of revenue growth. Income Builder Daily Recap U.S. equity markets remained under pressure Wednesday as benchmark interest rates continued to march higher following hawkish Fed commentary and PMI data showing a mild reacceleration in price pressures. Closing at its lowest level in nearly six weeks, the S&P 500 slipped 0.5% today while the tech-heavy Nasdaq 100 dipped 0.8% to its lowest level since late January, but the Dow managed to eke out a 5-point gain.

The 10-Year Treasury Yield crossed through the 4%-level for the first time since early November as investors increasingly price-in expectations of a "higher-for-longer" monetary policy environment. Rate concerns kept downward pressure on real estate equities today as earnings season wrapped-up. The Equity REIT Index slipped another 1.3% today with 15-of-18 property sectors in negative territory while the Mortgage REIT Index declined 2.2%. Real Estate Daily Recap Best & ...