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

Real Estate Extends Gains Amid Turbulence

  • To read the full article, click here to view SeekingAlpha!

  • On another wild week for financial markets amid a flurry of volatility, US stocks couldn’t quite claw back all of their early-week declines, ending lower for the third straight week.

  • Record-low bond yields around the globe, including new historic lows on the US 30-year Treasury yield, helped to power the real estate sector to another week of outperformance.

  • Lower mortgage rates have revitalized the US single-family housing market, which saw starts jump to the highest level since January. Homebuilder sentiment and mortgage demand data was also solid.

  • Strong retail sales data eased investor concern over the health of the US consumer, but industrial and manufacturing production data continues to show weakening demand for goods from abroad.

  • Core inflation has unexpectedly perked up a bit this summer, primarily led by rising housing costs. The rise in CPI: Shelter is near the highest level in a decade.

The domestic-focused and rate-sensitive equity sectors, particularly real estate and utilities, extended their 2019 outperformance this week as the 10-year yield continued its free fall. The broad-based REIT ETFs (VNQ and IYR) finished slightly higher on the week, pushing their outperformance relative to the S&P 500 to nearly 6% over the past four weeks and pushed their total return on the year to roughly 25%. The gains would be even higher absent the continued weak performance from the mall REIT sector, which dove another 4% on the week following soft earnings from department store giant Macy's (M) despite otherwise solid retail sales data. The residential and technology-focused real estate sectors led the gains last week.

To Continue Reading for Free, Click Here To Visit Seeking Alpha!

For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Apartments, Homebuilders, Student Housing, Single-Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Apartments, Shopping Centers, Hotels, Office, Storage, Timber, and Real Estate Crowdfunding.

Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. All commentary published by Hoya Capital Real Estate is available free of charge and is for informational purposes only and is not intended as investment advice. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.

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