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.
