REIT investors get a break in the action this week



A slow week coming up

Typically, the week after the jobs report is slow as far as data goes. Bonds will be closed on Tuesday in observance of Veteran’s Day. Most earnings releases are out. We’re heading into the later part of earnings season, when we hear from the retailers. We’ll have earnings from builder D.R. Horton (DHI) on Tuesday.

JOLT Job Openings

Economic data this week

Monday, November 10, 2014

  • Labor Market Conditions Index

Tuesday, November 11, 2014

  • NFIB Small Business Optimism

Wednesday, November 12, 2014

  • Mortgage Bankers Association (or MBA) mortgage applications
  • Wholesale inventories
  • Wholesale sales

Thursday, November 13, 2014

  • Initial jobless claims
  • Bloomberg Consumer Comfort Index
  • JOLTs job openings

Friday, November 14, 2014

  • Retail sales
  • Import prices
  • University of Michigan Confidence
  • Business inventories

Earnings reports this week

Tuesday, November 11

Impact on mortgage REITs

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Mortgage real estate investment trusts (or REITs), such as American Capital Agency Corp. (AGNC) and Annaly Capital Management (NLY), will focus on data that will move the bond market. Nothing this week will be market-moving. Bonds rallied hard on the jobs report last week. For mortgage REITs, this week will be about adjusting to that.

Impact on homebuilders

The big homebuilders, like Toll Brothers (TOL) and PulteGroup (PHM), will pay the most attention to D.R. Horton’s earnings. D.R. Horton is a diversified builder that has exposure to the first-time homebuyer.

We do have some consumer data this week, which matters as well—the Bloomberg Consumer Comfort Index and the University of Michigan Consumer Confidence data. The builders are highly sensitive to consumer sentiment.

Impact on commercial REITs

Mall REITs, such as Simon Property Group (SPG) and General Growth Properties (GGP), will probably pay close attention to the retail sales numbers to get a read on consumer spending heading into the all-important holiday shopping season. Office REITs, such as Boston Properties (BXP) and S.L Green (SLG), will be interested in the JOLTS job opening numbers.


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