Losers of REIT Earnings Season
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 overwhelmingly positive this REIT earnings season - with 32 REIT dividend hikes - five REITs reduced their dividends including: Orion Office, Ready Capital, Ares Commercial, and Arbor Realty.
