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Must-know releases for REITs and homebuilders this week

Must-know releases for REITs and homebuilders this week (Part 1 of 6)

Must-know releases for REITs and homebuilders this week

Earnings season really gets into gear after a short week

This week begins the flood of earnings, and many of the heavyweights like Apple (AAPL) and GM (GM) are reporting. We’ll hear from a pair of commercial REITs and homebuilders this week. There’s nothing too important on the economic calendar, however, so mortgage REITs get a break.

Pulte Gross MarginsEnlarge Graph

Economic data this week

Monday, April 21

  • Chicago Fed National Activity Index
  • Index of Leading Economic Indicators

Tuesday, April 22

  • FHFA Home Price Index
  • Richmond Fed
  • Existing home sales

Wednesday, April 23

  • MBA Mortgage Applications
  • Markit Manufacturing PMI
  • New home sales

Thursday, April 24

  • Initial jobless claims
  • Bloomberg Consumer Comfort
  • Durable goods
  • Kansas City Fed

Friday, April 25

  • Markit PMI
  • Markit Services PMI
  • University of Michigan Consumer Confidence

Earnings reports this week

Tuesday, April 22

  • Simon Property Group (SPG)
  • Prologis (PLS)

Thursday, April 24

  • PulteGroup (PHM)
  • D.R. Horton (DHI)

Impact on mortgage REITs

Mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), and MFA Financial (MFA) are highly interest rate–sensitive. There really isn’t much in the way of data that will affect the bond market this week. Tapering is on autopilot at this point, so for the REITs, it’s all about when short-term rates go up.

Impact on homebuilders

We’ll get earnings from D.R. Horton (DHI) and PulteGroup (PHM) next week and the question that will be on every analyst’s mind is “how is the spring selling season shaping up?” followed by “how long can gross margins continue to increase?” The builders are hoping to see a more robust economy bring back the first-time homebuyer, who has been MIA since the real estate bust. Both Pulte and D.R. Horton are at the lower price points, which means they’ll feel the effect of increasing household formation first.

Impact on commercial REITs

Commercial REIT analysts will listen to Simon Property’s call and look for read-across items for General Growth Properties (GGP). The Prologis (PLD) report will give some hints on how the overall economy is doing. The Markit PMI data will also be of interest.

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