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Why this week is all about earnings for REITs like Annaly

Brent Nyitray, CFA, MBA

Why this week is all about earnings for REITs like Annaly (Part 1 of 6)

What to watch for in real estate this week

The week after the jobs report is invariably dull, and this one is no exception as some reports (ISM and construction spending) were moved up into the prior week. The economic data shouldn’t be market-moving.

We do have a few REITs reporting, with mortgage heavyweight Annaly (NLY) and originator-servicer Nationstar (NSM).

Economic data this week

Monday, August 4

  • ISM NY

Tuesday, August  5

  • Markit US Services PMI
  • Markit US Composite PMI
  • ISM Services Index
  • IBD/TIPP Economic Optimism

Wednesday, August 6

  • MBA Mortgage Applications
  • Trade balance

Thursday, August 7

  • Initial jobless claims
  • Bloomberg Consumer Comfort
  • Consumer credit

Friday, August 8

  • Non-farm productivity
  • Unit labor costs
  • Wholesale inventories
  • Wholesale sales

Earnings reports this week

Tuesday, August 5

  • Ares Capital Corp. (ARCC)

Wednesday, August 6

  • Nationstar (NSM)
  • Annaly Capital Management (NLY)

Thursday, August 7

  • National Realty Finance (NRF)

Friday, August 8

  • Fannie Mae (FNMA)

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 was all about last week. Nothing this week will be market-moving, though investors will certainly notice what Annaly has to say.

Impact on homebuilders

Builders will focus on more macro data like the the ISM services and some of the smaller PMI reports. No builders are reporting this week, so it promises to be dull for them.

Impact on commercial REITs

The most important data for commercial REITs will be the IBD/TIPP Economic Optimism Index. This data will interest mall REITs like Simon Property Group (SPG) and General Growth Properties (GGP).

Office REITs like Brookfield Office Properties (BPO) and Vornado Realty Trust (VNO) will be most interested in the ISM services index and a few of the other regional PMI indices.

Continue to Part 2

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