- We're now at the halfway point of another newsworthy REIT earnings season. The major themes this quarter have been "Beat and Boost" and the revival of long-dormant "Animal Spirits."
- Nearly 90% of REITs have topped consensus earnings estimates. Of the 57 REITs and homebuilders that provide full-year guidance, nearly two-thirds have raised their full-year estimates.
- Positive surprises thus far in Q1 have been primarily in the residential REIT sectors where self-storage, manufactured housing, and sunbelt-focused apartment REITs have reported stellar results.
- Recovering valuations and ample access to capital have reignited the M&A "animal spirits" in the REIT world. Q1 saw mergers to form the largest net lease and shopping center REITs.
- SPAC Mania also swept the REIT sector in Q1. "PropTech" remains a major area of focus as companies seek to improve the efficiency, productivity, and margins of the real estate ecosystem.
For further details see:
Beat And Boost: REIT Earnings Halftime Report