AAIC - Rents Paid Dividends Raised: REIT Earnings Recap

• Flying under-the-radar during Election season, a frenzy of real estate earnings reports over the last three weeks have provided critical information on the state of the commercial real estate sector.
• Roughly two-thirds of the 170 equity REITs in our coverage universe beat consensus FFO estimates while nearly two dozen REITs boosted full-year guidance compared to just one that lowered it.
• The wave of dividend cuts during the pandemic has been reversed. Eight REITs boosted their dividend above pre-pandemic rates, bringing the total to 39 equity REITs and 2 mortgage REITs.
• We did see some fireworks as well. Two troubled mall REITs filed for Chapter 11 bankruptcy protection as the pandemic finally pushed these struggling landlords over the edge.
• The bifurcation between "essential" and "non-essential" sectors widened. Residential REITs were the positive standouts this quarter on the resilient strength of the housing sector while retail REITs continue to stumble.

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