Real Estate Daily Recap: Cell Towers Drag on REITs, Homebuilders Dip
Following a 1.2% climb last week, the Hoya Capital US REIT Index finished the day lower by 1.3%, dragged down by the cell tower REIT sector, which dipped on positive news from the FCC regarding the potential Sprint/T-Mobile merger. The self-storage sector was the only REIT sector to finish in the green. The S&P 500 climbed declined by 0.7% and the Nasdaq dipped 1.7%. At 2.42%, the 10-Year yield finished the day higher by 2 basis point, bouncing back from the lowest weekly closing level in nearly 18-months.
Within the REIT sector, the lower-quality mall REITs were the biggest losers on the day with CBL dipping more than 10%. Cell Tower REITs Crown Castle, SBA Communications, and American Tower were also among the laggards.
The Hoya Capital US Housing Index finished the day lower by 1.0% with just one of the eight housing sectors in positive territory. The Real Estate Insurance sector was the relative outperformer. Target, La-Z-Boy, Wayfair, MGIC, and M&T Bank were the top-five performers on the day.
The Homebuilding and Real Estate Brokerage & Technology sectors were the relative laggards on the day. Overstock finished lower by more than 6% while Weyerhaeuser, PPG, TRI Pointe, and Bed Bath & Beyond each declined by more than 3%.
It's a busy week for housing data and housing-related retail earnings with Existing Home Sales tomorrow and New Home Sales on Thursday.
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