Rents Are Soaring
We're two weeks into another newsworthy real estate earnings season with roughly one-third of the real estate sector by market cap reporting fourth-quarter results.
In this report, we compile our Earnings QuickTake commentaries and updated Ratings and Price Targets for our portfolio holdings, and discuss the highlights and major developments thus far.
Residential REITs have been the upside standouts of earnings season thus far as rents continue to soar by double-digit rates across essentially all markets and segments of the rental markets.
Office REITs have also been a notable upside surprise thus far, aided by robust demand for lab and life sciences space, a positive read-through for medical office REITs as well. Other segments of the Healthcare sector (SNF, Senior Housing) continue to deal with Omicron headwinds.
Ten REITs and a pair of homebuilders have hiked their dividends thus far in 2022. We expect a similarly powerful wave of dividend hikes as in 2021 when 130 REITs raised their payouts.