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Real estate stocks rose this week as the market priced in a near-certain Federal Reserve interest rate cut in September and traders began moving out of tech stocks into other assets, including defensive and value sectors. Small cap stocks.
Meanwhile, the assassination attempt has increased the odds that former President Donald Trump will win the US presidential election in November, with a landslide Republican victory widely seen as good news for markets.
Real Estate Select Sector SPDR Fund ETF (NYSEARCA:XLRE) Ended 1.30% It is up 40.51 from last week and has risen in three of the five sessions. 8% It has risen above the 200-day simple moving average.
The Dow Jones Equity All REIT Total Return Index is 1.58%Meanwhile, FTSE Nareit All Equity REITs rose. 1.23%.
Meanwhile, the S&P 500 fell. Approximately 2% The rotation out of technology stocks continued following a weak inflation report on Thursday, July 11. Data center REITs Equinix (EQIX) and Digital Realty Trust (DLR) were the worst performing S&P 500 real estate stocks this week amid the rotation.
Revenue
The real estate industry is off to a strong start to the quarterly earnings season.
Prologis (PLD) raised the lower end of its 2024 core FFO guidance after weak but improving customer demand helped the industrial REIT post slightly better-than-expected second-quarter profit.
Crown Castle (CCI) reported on Wednesday that its second-quarter operating cash flow beat analysts’ average estimate, but remained down quarter-over-quarter and year-over-year. The communications infrastructure REIT’s 2024 outlook remains unchanged from its previous guidance issued on June 11, 2024.
Rexford Industrial Realty (REXR) slightly raised the low end of its 2024 core funds-from-operations guidance but kept the high end intact after the industrial REIT’s second-quarter results beat Wall Street expectations.
First Industrial Realty Trust (FR) beat its second-quarter results, SL Green Realty (SLG) raised its 2024 funds from operations (FFO) guidance after reporting earnings, and Alpine Income Property Trust (PINE) posted profits that beat Wall Street expectations.
The company’s performance is expected to be in the spotlight next week.
Major real estate companies scheduled to report quarterly earnings next week include Alexandria Real Estate Equities (ARE), Equity Lifestyle Properties (ELS), AGNC Investments (AGNC), ARMOUR Residential REIT (ARR), CoStar Group (CSGP), Agri Realty (ADC), Highwoods Properties (HIW), Brandywine Realty Trust (BDN), Invitation Homes (INVH), and Annaly Capital Management (NLY ), Essential Properties Realty Trust (EPRT), Empire State Realty Trust (ESRT), Getty Realty (GTY), Pebblebrook Hotel Trust (PEB), Digital Realty Trust (DLR), CBRE Group (CBRE), Weyerhaeuser (WY), Healthpeak Properties (DOC), Gaming & Leisure Properties (GLPI), CTO Realty Growth (CTO), and Howard Hughes Holdings (HHH).
performance
XLRE has a net inflow of $52.59 million Last week’s outflow was $1.4 million A week ago, data from information solutions provider VettaFi Indicated.
Seeking Alpha’s Quant Rating system changed its recommendation on the ETF from “sell” to “hold” this week, with a soundness score of 3.02 out of 5. The system rates XLRE Momentum at a B-, Expenses at an A, Dividends at a C-, Risk at a D+ and Liquidity at an A+.
SA analysts also rate the fund a “hold”.
Equity Residential (EQR), Essex Property Trust (ESS) and Camden Property Trust (CPT) led the residential sector and posted the biggest weekly gains among the XLRE subsectors.
Meanwhile, the hotel sector posted the biggest weekly decline after JPMorgan downgraded shares of Host Hotels & Resorts (HST) at a high price.
The performance of the subsectors is as follows:
