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Key releases that could affect your REIT and homebuilder portfolio

Brent Nyitray, CFA, MBA

Key releases that could affect your REIT and homebuilder portfolio (Part 1 of 6)

This week contains the all-important jobs report

The highlight of this week will be the jobs report. April has been a mixed bag with respect to economic data, so it will be interesting to see how the jobs report plays out. As of now, the Street is looking for an increase in payrolls of 215k, a middle-of-the-road number. Unemployment is expected to tick up to 6.4%. We’ll also get ISM Services, which is an important number, along with construction spending. Earnings season is over, for the most part, and we’ll start hearing companies warn that they’ll miss their quarter.

Economic data this week

Monday, June 2

  • Markit PMI
  • ISM Manufacturing
  • ISM Prices Paid
  • Construction spending

Tuesday, June 3

  • ISM New York
  • Factory orders
  • IBD/TIPP Economic Optimism
  • Domestic vehicle sales

Wednesday, June 4

  • MBA Mortgage Applications
  • ADP Employment Change
  • Trade balance
  • Non-farm productivity
  • Unit labor costs
  • ISM Services
  • Beige book
  • Markit US Services PMI
  • Markit Composite PMI

Thursday, June 5

  • Initial jobless claims
  • Bloomberg Consumer Comfort
  • Challenger Job Cuts
  • Household change in net worth

Friday, June 6

  • Non-farm payrolls
  • Unemployment rate
  • Average hourly earnings
  • Average weekly hours
  • Labor force participation rate
  • Consumer credit

Earnings reports this week

  • No real estate–related earnings this week

Impact on mortgage REITs

Mortgage REITs like American Capital Agency (AGNC) and Annaly (NLY) will focus on data that will move the bond market. For them, it will be all about the jobs report.

Impact on homebuilders

The builders will primarily focus on the construction spending report but will also be concerned with the jobs report as it drives the overall economy.

Impact on commercial REITs

The most important data for the commercial REITs will be the earnings from retailers, which are winding down and affect the mall REITs like Simon Property (SPG) and General Growth Properties (GGP). Office REITs like Brookfield Office Properties (BPO) and Vornado Realty Trust (VNO) will also focus on the ISM Services Report, which will highlight hiring.


Continue to Part 2

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