Losers Of REIT Earnings Season

2025-03-11 09:00:00 ET

Summary

• In Part 3 of our Earnings Recap, we present a sector-by-sector breakdown of the Losers of REIT Earnings Season, discussing incremental positives/negatives and noting the individual standouts.
• Commercial Mortgage REITs were the "biggest loser" of REIT earnings season after results showed ongoing problems in the office space and a significant deterioration in multifamily bridge loan performance.
• Results from Hotel REITs were also disappointing given the record-levels of travel demand, as margin pressures from higher labor costs have taken a sizable bite out of bottom-line profitability.
• In a similar light, Office REIT results were also mildly disappointing, as higher financing costs have stymied an encouraging property-level recovery. Self-Storage REIT results also showed lingering softness.
• While dividend news was overwhelming positive this REIT earnings season - with 32 REITs dividend hikes - five REITs reduced their dividends including: Orion Office, Ready Capital, Ares Commercial, and Arbor Realty.

Losers of REIT Earnings Season

In Part 1 of our Earnings Recap - REIT Earnings Scorecard - we discussed the high-level takeaways from the roughly 200 equity REITs, mortgage REITs, and homebuilders. In Part 2 , we discussed the Winners of REIT Earnings Season . Here in Part 3 , we discuss the Losers of REIT Earnings Season. ...

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