S&P hits another record, but real estate stocks don’t follow suit

Nareit’s All REIT index fell on Monday less than 1%

National /
Oct.October 29, 2019 08:00 AM
(Credit: iStock)

(Credit: iStock)

The S&P 500 rallied to a record high on Monday — though real estate stocks didn’t exactly join the party.

Nareit’s All REITs index, a measure of real estate investment trusts, was down 0.53 percent. Equity REITs fell 0.6 percent, though mortgage REITs rose 0.38 percent. And the Real Estate Select Sector Index fell by 2 points by the end of the day.

Out of a mix of 28 real estate stocks tracked by The Real Deal, 15 posted gains and one stayed flat. The top performer was RE/MAX, whose stock was up almost 3 percent. The weakest was Lennar Corporation, which reported third-quarter net earnings of $513.4 million, up from $453.2 million year over year. Its stock was down almost 2.5 percent Monday.

The S&P 500 closed Monday at just over 3,039, up almost 17 points from Friday, buoyed in part by trade optimism, the prospect of another benchmark interest rate cut from the Federal Reserve this week and positive earnings calls. The index’s previous record was from late July.

“Of the S&P 500 companies that have reported over the last month, just 32 mention recession on their calls,” Sentieo’s Nick Mazing told CNBC.

Last month, the Federal Reserve slashed interest rates by 25 basis points, often widely viewed as a boost to real estate investors and a move that industry watchers anticipate will happen again when the central bank’s Federal Open Market Committee meets this week.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)
CIM closes on $400M refi for 1440 Broadway
CIM closes on $400M refi for 1440 Broadway
(The Denizen, Facebook via Jonathan Braun)
All Year recants allegation against Trump-pardoned drug smuggler
All Year recants allegation against Trump-pardoned drug smuggler
Acore Partner Warren de Haan. (Acore, Getty)
Acore Capital raises $1B to provide rescue cash to hotels
Acore Capital raises $1B to provide rescue cash to hotels
 61 Bond Street in Brooklyn, iStar's Jay Sugarman and GFI's Allen Gross (Photos via Google Maps, iStar and Urban Land Institute)
GFI sells ground under Ace Hotel in Brooklyn for $45M
GFI sells ground under Ace Hotel in Brooklyn for $45M
AKA United Nations at 234 East 46th Street (Google Maps, iStock)
Bank forecloses on Prodigy’s AKA United Nations hotel building
Bank forecloses on Prodigy’s AKA United Nations hotel building
From left: 410 Tenth Avenue, 100 Park Avenue, a rendering of 230 East 20th Street, a rendering of 30 Morningside Drive, SL Green's Marc Holliday (Photos via Google Maps, Getty, Gramercy Square, 30 Morningside Drive/Illustration by Kevin Rebong for TRD) 
These were the largest Manhattan real estate loans in January
These were the largest Manhattan real estate loans in January
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...