Alex Pettee, CFA
Real Estate Daily Recap: REITs Finish Modestly Higher, Housing Gains On Another Busy Day of Earnings
Following a 0.4% gain last yesterday, the Hoya Capital US REIT Index finished the day higher by 0.3%, climbing back into positive territory on the week. The data center, storage, and hotel REIT sectors led the gains on the day while the office and industrial REIT sectors lagged. At 2.54%, the 10-Year yield finished the day higher by 4 basis points. The S&P 500 finished the day lower by 0.2%, the second straight down-down.
The Hoya Capital US Housing Index finished the day higher by 0.4% with six of the eight sectors in positive territory. The Homebuilders and Home Furnishings sectors were the strongest performing segments. Tempur Sealy (TPX) was the strongest performer following better-than expected earnings.
The Real Estate Technology & Brokerage sector was the laggard on the day, dragged down by a sharp 22% decline from Realogy Holdings following worse-than-expected earnings results. Wayfair (W) was also down more than 7% following earnings results.
For the week, REITs are higher by 0.1% while the Housing Index is up 0.3%. Homebuilders are the best-performing housing sector while Storage is the best performing REIT sector.
The jam-packed week for real estate earnings wraps up tomorrow with WPC and AMT.
The busy week for housing and economic data concludes with the monthly non-farm payrolls report on Friday.
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