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
Turnbridge Equities founder Andrew Joblon, KKR co-founder Henry Kravis and the distribution center (Getty, Turnbridge)
Turnbridge, Dune land $381M loan for Hunts Point site
Turnbridge, Dune land $381M loan for Hunts Point site
Vanbarton Group’s Gary M. Tischler and Richard Coles with Marble Collegiate Church at 1 West 29th Street (Getty)
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
Northwind Group managing partner Ran Eliasaf and 165 Lexington Avenue (Northwind Group, Brooklyn North Capital)
Brooklyn North Capital, RiverBrook score $49M loan for Kips Bay condo
Brooklyn North Capital, RiverBrook score $49M loan for Kips Bay condo
One man, two companies, three bankruptcies
One man, three bankruptcies: Verrino Construction files for Chapter 7
One man, three bankruptcies: Verrino Construction files for Chapter 7
Maverick Real Estate Partners principal David Aviram and 416 West 25th Street (Google Maps and LinkedIn)
Maverick denied yet again in battle over Chelsea rental
Maverick denied yet again in battle over Chelsea rental
Whitney Duan, 432 Park Avenue, Maverick Real Estate CEO David Aviram ( Communist Youth League, Epistola8/Wikimedia, LinkedIn)
Plot thickens in case of missing Chinese mogul’s 432 Park Avenue condo
Plot thickens in case of missing Chinese mogul’s 432 Park Avenue condo
arrow_forward_ios

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

Loading...