UBP - Buying The REIT Correction

• At the halfway point of another newsworthy REIT earnings season, the majority of REITs are now in "correction" territory with several of the highest-flying REITs in "bear market" territory.
• Consistent with the trends seen across the broader equity market, REIT earnings have generally been better than expected with the vast majority of REITs topping estimates and raising full-year guidance.
• As anticipated in our Earnings Preview, dividend hikes have been a major theme as nearly 30 REITs have already raised their payouts this year following 130 dividend hikes last year.
• Residential REITs continue to be 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.
• Within the REIT sector this year, performance trends have been driven entirely by macroeconomics and the growth-to-value rotation. Sectors with the strongest fundamentals have lagged this year while office and hotel REITs have been leaders.

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