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Hoya Capital Real Estate, LLC

Invest@HoyaCapital.com

(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.

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The Easy Way To Invest In Real Estate

Economics, Housing, & Commercial Real Estate Analysis

Keepin' It Real 

Apartment REITs
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Data Center REITs
Mall REITs
Net Lease REITs
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  • Alex Pettee, CFA

Strong Week For REITs As Jobs Data Keeps Fed In Play

  • For full report, click here to read SeekingAlpha!

  • On the Independence Day-shortened week, the major US equity indexes delivered another week of strong gains, climbing to new end-of-week record highs. REITs recovered after their worst week of 2019.

  • With all eyes on the Fed, jobs data was generally better than forecast. BLS payrolls beat estimates but ADP employment data fell short, keeping the Fed on-course for a July rate cut.

  • Dragged down by a slowdown in the goods-producing and retail sectors, the pace of job growth has slowed in 2019 to 170k per mouth from nearly 225k in 2018.

  • Benefiting the yield-sensitive sectors, data over the past month substantiates the “Goldilocks” economic environment of low inflation, low interest rates, and slow-but-steady growth, ideal conditions for REITs and homebuilders.

  • Construction spending came in weaker than expected in May, but lower interest rates and moderating construction costs provide a favorable backdrop for residential construction activity in the second half.

Coming off their worst week of 2019, the broad-based REIT ETFs (VNQ and IYR) rallied more than 2.5% led by the defensively-oriented manufactured housing and student housing sectors. After dipping as low as 1.94% intra-week following weak economic data early in the week, the 10-year yield (IEF) bounced off the lowest levels since 2016, jumping 10 basis points on Friday following the jobs report to close the week roughly unchanged at 2.05%, but the yield-sensitive REIT sector held its ground despite the bond sell-off. Benefiting the yield-sensitive sectors, data over the past month substantiates the “Goldilocks” economic environment of low inflation, low interest rates, and slow-but-steady growth, ideal conditions for REITs and homebuilders.

If you enjoyed this report, be sure to "Follow" our page to stay up-to-date on the latest developments in the housing and commercial real estate sectors. For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Homebuilders, Apartments, Student Housing, Single Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Apartments, Shopping Centers, Hotels, Office,Storage, and Real Estate Crowdfunding.


Disclosure: An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. The information presented does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. 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 the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances before investing. Visit our website for a complete definition of all indexes cited in this report. Investing involves risk and loss of principal is possible.

Hotel REITs
Single Family Rental REITs
Mobile Home REITs
Healthcare REITs
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