REIT Earnings Preview: Inflation And Dividend Hikes In Focus
Real estate earnings season kicks off this week. We'll see results from more than 175 equity REITs, 40 mortgage REITs, and dozens of housing industry companies over the next month.
REITs enter third-quarter earnings season as the second-best-performing asset class this year with total returns of nearly 30%, trailing only commodities which have similar inflation-hedging characteristics.
Residential REITs and specialty REIT sectors - billboard, cannabis, and timber REITs - delivered the strongest returns over the last quarter. Large-cap technology REITs have uncharacteristically lagged.
It'll be hard to top the record-pace of "beat and raise" reports in Q2 in which 95% of equity REITs topped consensus FFO estimates and 75% of the REITs that provide forward guidance boosted their full-year outlook.
110 REITs have already hiked their dividends this year. We discuss the themes and metrics we'll be watching across all of the major real estate property sectors this earnings season.
Disclosure: Hoya Capital Real Estate advises two Exchange-Traded Funds listed on the NYSE. In addition to any long positions listed below, Hoya Capital is long all components in the Hoya Capital Housing 100 Index and in the Hoya Capital High Dividend Yield Index. Index definitions and a complete list of holdings are available on our website.
Additional 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. 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.