REIT - Tensions Ease Ahead Of Critical Week
2025-04-27 09:00:00 ET
Summary
- US equity markets resumed their recovery this week from the "liberation day" plunge after the White House negotiated trade deals with several nations and indicated plans to ease China tariffs.
- Trimming its drawdown to around 10% from its mid-February highs, the S&P 500 rallied 4.6% this week - erasing an early-week dip with four-straight days of gains.
- After posting significant outperformance last week, real estate equities were among the laggards this week despite a solid start to REIT earnings season and a much-needed retreat in benchmark rates.
- Digital Realty - the second-largest data center REIT - rallied more than 6% this week after reporting surprisingly strong results amid recent concerns over a tariff-related slowdown in hyperscale expansion.
- For CRE lenders, meanwhile, "no news" is "good news" this earnings season. Apollo Commercial rallied 10% after reporting a quiet quarter with no asset-specific credit hits and an unchanged Risk Rating.
Real Estate Weekly Outlook
US equity markets resumed their recovery this week from the "liberation day" plunge - while benchmark interest rates moderated to the lowest-levels since early April - on reports that the White House is nearing trade deals with several key partners, while investors parsed corporate earnings results and economic indicators that were more benign than feared amid the historic plunge in business and consumer sentiment surveys in recent weeks. Helping to further calm financial markets, following a series of blistering critiques last week, President Trump stated he has "no intention" of firing Federal Reserve Chairman Jay Powell, while commentary from other Fed officials indicated more readiness to cut rates if labor markets show signs of softening....
Tensions Ease Ahead Of Critical Week