Keepin' It Real 

Economics, Housing, & Commercial Real Estate Analysis

1/1
Housing100logo.png
ETF express.png
  • Alex Pettee, CFA

Dividend Cuts Pressure REITs [Daily Recap]

  • U.S. equity markets finished lower on Friday, erasing most of their weekly gains following a disappointing slate of earnings results from Amazon and Apple amid continued coronavirus-related uncertainty. Following declines of 0.9% yesterday, the S&P 500 finished lower by 2.7% while the Dow Jones Industrial Average declined by 620 points following yesterday's 290 point decline. Real estate equities finished lower for the second-straight day but clung to weekly gains as the broad-based Equity REIT ETFs declined by 3.4% while Mortgage REITs declined by 2.6%. Equity and Mortgage REITs each outperformed this week as earnings season has generally been in-line or slightly better than expectations, but dividend cuts are mounting. 28 out of 165 Equity REITs have cut dividends since the start of the pandemic. Next week, we'll hear earnings results from roughly 50% of Equity and Mortgage REITs. We'll have a full preview of what to watch for in our Weekly Outlook report published tomorrow morning.

Real Estate Daily Recap

U.S. equity markets finished lower on Friday, erasing most of their weekly gains following a disappointing slate of earnings results from Amazon (AMZN) and Apple (AAPL) amid continued coronavirus-related uncertainty. Following declines of 0.9% yesterday, the S&P 500 ETF (SPY) finished lower by 2.7% while the Dow Jones Industrial Average (DIA) declined by 620 points following yesterday's 290 point decline. Real estate equities finished lower for the second-straight day but clung to weekly gains as the broad-based Equity REIT ETFs (VNQ) (SCHH) declined by 3.4% while Mortgage REITs (REM) declined by 2.6% ahead of the busiest week of REIT earnings season. 

We've now tracked 28 equity REITs in our universe of 165 names to announce a cut or suspension of their dividends in addition to the roughly half of mortgage REITs (20 out of 41) that have announced dividend cuts thus far.

Click here to read the full report on Seeking Alpha!

  • Facebook Social Icon
  • Twitter Social Icon
  • LinkedIn Social Icon

Hoya Capital Real Estate, LLC

Invest@HoyaCapital.com

(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. It is not possible to invest directly in an index. Index performance cited in this website or commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Nothing on this site nor any published commentary by Hoya Capital is intended to be investment, tax, or legal advice or an offer to buy or sell securities. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and should not be considered a complete discussion of all factors and risks. Data quoted represents past performance, which is no guarantee of future results. Investing involves risk. Loss of principal is possible. Investments in companies involved in the real estate and housing industries involve unique risks, as do investments in ETFs, mutual funds, and other securities. Hoya Capital has no business relationship with any company discussed/mentioned. Hoya Capital never receives compensation from any company discussed/mentioned. Hoya Capital, its affiliate, and/or its clients and/or its employees may hold positions in securities or funds discussed on this website and our published commentary. A complete list of holdings and other important disclosures and definitions are available by clicking the links below.

Privacy Policy 

 Client Relationship Summary 

Hoya Capital's ADV Part 2

Important Disclosures, Definitions, & List of Holdings 

Seeking-Alpha-Logo.png

The Easy Way To Invest In Real Estate