National Real Estate Investor

Summary

• Earnings season kicks off this week in the real estate sector. More than 100 REITs and 10 homebuilders will report third-quarter earnings over the next five weeks.
• Real estate equities continue to be negatively impacted by rising interest rates. REIT ETFs have dipped 5% over the last quarter while homebuilders have dipped 20%.
• Already facing pressure from unaffordability issuse, rising mortgage rates in 2018 has led to a softening in the single family markets. Rental markets, however, have largely picked up the slack.
• Most REIT sectors are experiencing a mild reacceleration in fundamentals as oversupply pressures continue to fade. Analysts expect another solid quarter for REITs, powered by better-than-expected job growth in 2018.
• Retail REIT's commentary will be in-focus after another round of high profile retail bankruptcies. Residential REIT rent growth metrics will be an important barometer of the broader housing market.

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