Stocks Dip • Debt Standoff • REIT Earnings

March 31, 2022 | Hoya Capital

Stocks Dip • Debt Standoff • REIT Earnings Daily Recap May 2 Written By Alex Pettee, CFA U.S. equity markets finished broadly lower Tuesday as a renewed sell-off among regional lenders added to concern over financial market instability on the eve of another expected Federal Reserve interest-rate hike. Further pressured by concern over an ongoing Federal debt limit standoff, the S&P 500 finished lower by 1.1% today while the Mid-Cap 400 and Small-Cap 600 dipped by about 1.5% each.

Real estate equities were under pressure today for a second-straight day despite a generally solid slate of earnings results and a retreat in benchmark rates. The Equity REIT Index declined 1.6%. Single-family rental REIT Invitation Homes (INVH) was among the leaders today after it reported solid results, highlighted by buoyant rental rate trends in Q1, with renewal rent growth of 8.0% and new lease rent growth of 5.7%, resulting in blended rent growth of 7.3%.

Strip center REIT Kite Realty (KRG) was also among the better performers today after raising its full-year FFO and NOI growth outlook, continuing a strong start to earnings season for retail REITs. Explore hoya capital INVESTMENT RESEARCH Income Builder Daily Recap U.S. equity markets finished broadly lower Tuesday as a renewed sell-off among regional lenders added to concern over financial market instability on the eve of another expected Federal Reserve interest rate hike.

Further pressured by concern over an ongoing Federal Debt limit standoff, the S&P 500 finished lower by 1.1% today while the Mid-Cap 400 and Small-Cap 600 dipped by about 1.5% each. The Dow declined 367 points. Giving back all of Monday's advance, the 2-Year Treasury Yield dipped 15 basis points to 3.99%, while the 10-Year Treasury Yield declined 14 basis points to 3.58%. Real estate equities were under pressure today for a second-straight day despite a generally solid slate of earnings results and a retreat in benchmark rates.

The Equity REIT Index declined ...