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Get ready for earnings reports from heavyweights like PulteGroup

Brent Nyitray, CFA, MBA

Get ready for earnings reports from heavyweights like PulteGroup (Part 1 of 6)

What to watch for in real estate this week

This week begins the deluge of heavyweights announcing earnings. We’ll hear from General Electric (or GE), Google (GOOG), and the biggest banks. Also, we have a lot of important industrial and housing data, with industrial production, capacity utilization, housing starts, and building permits.

Economic data this week

Monday, July 21

  • Chicago Fed National Activity Index

Tuesday, July 22

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

Wednesday, July 23

  • MBA Mortgage Applications

Thursday, July 24

  • Initial jobless claims
  • Bloomberg Consumer Comfort
  • Markit Manufacturing PMI
  • New home sales
  • Kansas City Fed

Friday, July 25

  • Durable goods
  • Capital goods

Earnings reports this week

Tuesday, July 22

  • Prologis (PLD)

Wednesday, July 23

  • Simon Property Group (SPG)

Thursday, July 24

  • PulteGroup (PHM)
  • D.R. Horton (DHI)
  • Radian Group (RDN)

Impact on mortgage REITs

Mortgage real estate investment trusts (or REITs) like American Capital Agency (AGNC) and Annaly (NLY) will focus on data that will move the bond market. The economic data this week probably won’t be market-moving for the big REITs. But mortgage REITS that focus on mortgage origination like PennyMac (PMT) and Redwood Trust (RWT) will focus intently on what the big banks have to say about mortgage origination. Their margins will be particularly interesting.

Impact on homebuilders

Builders will focus on earnings out of homebuilding heavyweights PulteGroup and D.R. Horton. They’ll also focus on existing home sales data and the FHFA Home Price Index. D.R. Horton and Pulte are big, diversified builders with broad-based geographic exposure.

Impact on commercial REITs

The most important data for commercial REITs will be earnings out of Prologis and Simon Property Group. Office REITs like Brookfield Office Properties (BPO) and Vornado Realty Trust (VNO) will also focus on the regional Fed reports like the Kansas City Fed and the Chicago Fed National Activity Index.

Continue to Part 2

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