WE - Rents Are Absolutely Soaring

• We're at the halfway point of another newsworthy real estate earnings season with roughly 75 REITs reporting third quarter results. We discuss the highlights and major developments thus far.
• 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.
• Stellar results from residential REITs have been one of the key themes early in earnings season as rents continue to rise at the fastest rate on record across essentially every market.
• Each of the six apartment REITs has reported double-digit rent growth on new leases in Q3 - averaging 12.5% - and the rate of growth actually accelerated into early Q4 with new leases rising by nearly 15%.
• There's little place to hide from soaring rents as Invitation Homes reported that new lease rates on single-family rentals soared nearly 20% in Q3 while lease rates on renewed tenants approached 10%.

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