Economics, Housing, & Commercial Real Estate Analysis

Keepin' It Real 

Apartment REITs
Homebuilders 1.png
Data Center REITs
Mall REITs
Net Lease REITs
  • Alex Pettee, CFA

Daily Recap: REITs Climb | Yields Retreat | PPI Cools

Groundhog day? An oddly similar day to yesterday on several fronts, US equity markets finished the day fractionally higher with the S&P 500 ETF (SPY) matching yesterday's gains of 0.1% while the Nasdaq ETF (QQQ) finished fractionally lower, retreating by 0.1%. Like yesterday, inflation data this morning came in cooler-than-estimates with Core PPI retreating to the slowest rate of year-over-year growth since early 2017. And again like yesterday, the 10-Year Treasury Yield (IEF) yield ticker lower by 5 basis points, continuing to retreat from last week's intra-day high of 1.97%, ending the day at 1.82%.

Naturally, lower yields again boosted the more defensive and yield-oriented equity sectors with the materials, real estate, consumer discretionary, and utility sectors outperforming on the day. The broad-based Real Estate ETF (VNQ) finished the day higher by 0.8% following yesterday's 0.9% gains. Today's gains were led by the shopping center, cell tower, and timber REIT sectors while mall REITs were the lone sector in negative territory on the day. 

The Hoya Capital Housing Index, the benchmark that tracks the performance of the US housing industry, finished the day higher by 0.6%, led to the upside by the real estate technology and brokerage sector with strong performance from Realogy (RLGY) and Zillow (Z). After lagging for much of the year, the real estate technology and brokerage sector has sprung back to life over the last quarter with the sector jumping 17% versus the index's gains of 10% following strong earnings reports. Homebuilders also delivered a solid day with NVR (NVR), Meritage (MTH), and Taylor Morrison (TMHC) all climbing at least 1% on the day. 

This morning, the Bureau of Labor Statistics released Producer Price Index data for October. In a repeat of yesterday's CPI data, the "headline" PPI print came in slightly hotter-than-expected but the more economically-relevant Core PPI data was cooler-than-estimates. Year-over-year, Core PPI is higher by just 1.63%, the coolest rate of producer price increases since early 2017. Yesterday, the BLS reported that Core CPI rose 2.31% on a year-over-year basis, retreating from last month's 2.36%, and showing signs of cooling yet again following a brief inflation scare in 2018 after the passage of tax reform and the concurrent synchronous global growth. 

Hotel REITs
Single Family Rental REITs
Mobile Home REITs
Healthcare REITs
prison REITs overview.png
  • Facebook Social Icon
  • Twitter Social Icon
  • LinkedIn Social Icon

Hoya Capital Real Estate, LLC

(833) HOYA-CAP

Hoya Capital Real Estate ("Hoya Capital") is an SEC-registered investment advisory firm that provides investment management services to ETFs, individuals, and institutions, focusing on portfolio and index management of publicly traded securities in the real estate industry. Nothing on this site is intended to be investment advice or an offer to buy or sell securities. The risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values, lack of liquidity, limited diversification, and sensitivity to certain economic factors such as interest rate changes and market recessions. No representation or warranty is made as to the efficacy of any particular strategy or fund, or the actual returns that may be achieved. An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. Data quoted represents past performance, which is no guarantee of future results. The views and opinions in the preceding commentary are as of the date of publication and are subject to change without notice. The information presented does not reflect the performance of any fund or other account managed or serviced by Hoya Capital, and there is no guarantee that investors will experience the type of performance reflected. There is no guarantee that any historical trend illustrated herein will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that any trend cited in this market commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice, is not intended to predict or depict performance of any investment and does not constitute a recommendation or an offer for a particular security. We consider the information in this presentation to be accurate, but we do not represent that it is complete. It should not be relied upon as investment advice or as the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances before investing.

Additional Disclosure & Privacy Policy     Index Definitions & List of Holdings


The Easy Way To Invest In Real Estate