VPN - REITs gain ahead of earnings season
2023-07-15 12:00:00 ET
REITs gained ahead of the earnings season on the back of estimated solid quarterly results, despite an uptick in inflation expectations.
Recent reports were favorable towards the sector, which also pulled up sentiments.
M&A activities had picked up in Q2 after 2 slow quarters, with 4 REIT merger deals totaling $24.27B announced during the quarter, a report by S&P Global Market Intelligence showed .
7 publicly-traded U.S. REITs and 1 Canadian REIT announced dividend hikes in June, according to another Market Intelligence report.
The FTSE Nareit All Equity REITs index rose by 2.56% from last week, compared to the broader S&P 500 index that finished 2.42% higher.
Mortgage REITs increased by 4.43%, while the real estate index was up by 2.65%.
Self storage, industrial and data center subsectors were the biggest gainers of the week, having gained by more than 4% on an average.
Hotel REITs were major laggards, having decreased by 1.11% from last week. The subsector's top-line growth rates are likely to remain muted and expense growth elevated, which should lead to another quarter of margin degradation, a Baird Equity Research report said .
Here is a look at the subsector performance:
Which REITs to keep an eye on:
- 3 REITs To Set-And-Forget
- I Am Buying These 8% Yielding REITs
- 4 Cheap REITs To Take Advantage Of
- 1 REIT To Sell And 1 REIT To Buy
Generally on REITs:
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REITs gain ahead of earnings season