Real Estate Q4 Earnings Preview
Earnings season kicks off this week in the real estate sector. More than 100 REITs, 10 homebuilders, and 50 housing-related companies will report fourth-quarter earnings over the next six weeks.
Real estate equities have led the broader equity over the last quarter amid the retreat in interest rates and inflation expectations. The “Rates Down, REITs Up” mantra continued throughout 2018.
For REITs, investors will be hoping that the positive momentum of 2018 continued in 4Q18. A trend of the past two years, 2019 guidance is likely to be very conservative.
After the dismal end to 2018 for single family housing data, homebuilders earnings will be a key focus of not just real estate investors, but of all global market participants.
Given the sensitivity of single family ownership demand to mortgage rates, and the wide range of expectations on rates, earnings commentary and guidance will likely be all across the board.