Yields Retreat • Storage Speculation • Mortgage Payout Cut

March 3, 2023 | Hoya Capital

Yields Retreat • Storage Speculation • Mortgage Payout Cut Real Estate Daily Recap Mar 3 Written By U.S. equity markets rallied Friday - helping the benchmarks snap a three-week losing skid- after less-hawkish comments from several Fed officials and PMI data showing encouraging downward trends in price pressures. Lifting its weekly gains to around 2%, S&P 500 rallied by 1.6% today while the tech-heavy Nasdaq 100 gained more than 2% and the Dow added 387 points.

Real estate equities were among the leaders today as benchmark interest rates retreated from four-month highs. The Equity REIT Index gained 1.5% today with 17-of-18 property sectors in positive territory. Life Storage (LSI) rallied more than 2% today on speculation that the cancellation of its appearance at Citi's annual property CEO conference next week may indicate that it's getting closer to a deal with Public Storage (PSA) after rejecting its earlier acquisition proposal.

Mortgage REIT Great Ajax (AJX) dipped more than 7% after it became the fifth REIT to reduce its dividend this year, trimming its distribution by 7% to $0.25/share, representing a dividend yield of roughly 12% at the reduced rate. Income Builder Daily Recap U.S. equity markets rallied Friday - helping the benchmarks snap a three-week losing skid - after less-hawkish comments from several Fed officials and PMI data showing encouraging downward trends in price pressures.

Lifting its weekly gains to around 2%, S&P 500 rallied by 1.6% today while the tech-heavy Nasdaq 100 gained more than 2%. Real estate equities were among the leaders today as benchmark interest rates retreated from four-month highs. The Equity REIT Index gained 1.5% today with 17-of-18 property sectors in positive territory while the Mortgage REIT Index advanced 1.7%. Homebuilders rebounded on data from Redfin showing encouraging demand trends despite the recent rebound in mortgage rates, with its Homebuyer Demand Index climbing to the highest level since September.

Bonds caught a bid as investors interpreted comments ...