What To Watch This REIT Earnings Season

2025-07-22 09:00:00 ET

Real Estate Earnings Preview

Real estate earnings season kicks into gear this week, and over the next month, we'll hear results from 175 equity REITs, 40 mortgage REITs, and dozens of housing industry companies. After a relatively strong start to 2025, REITs are "back in the doghouse" heading into the second-quarter earnings season, lagging the S&P 500 by 15 percentage points over the past quarter as hopes of imminent Federal Reserve rate cuts have dimmed. Pressured by the rebound in the 10-Year Treasury Yields to near 4.50% - up from lows of around 4% early in the quarter - the Equity REIT Index has largely missed out on the post-Liberation Day rally that has sent the S&P 500 to fresh record highs. Remarkably, the last record high for the Equity REIT Index came on REITs, which remain over 20% below their last record high, which was seen all the way back on December 31, 2021. Remarkably, among the other 10 GICS equity sectors, 9 sectors have seen record highs this year, while the lone other - Materials - saw its most recent record high in mid-2024. This stumble has once again extended the accumulated underperformance gap of the Equity REIT Index versus the broader equity market to a staggering 50 percentage points since the initial start of the Fed's rate-hiking cycle in early 2022....

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