Banking crisis scars struggling U.S. real estate stocks

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U.S. real estate stocks are struggling this year after a rough 2022, as fears that banks will tighten lending standards pile pressure on a sector already hit by higher interest rates. | Reuters

companies,” said Peter Tuz, president of Chase Investment Coel. Because banks have lost deposits, “they will be just more careful who they lend money to,” he said.sector off nearly 30 percent from its all-time high at the end of 2021, investors are looking to upcoming earnings to determine the sector’s near-term trajectory. S&P 500company earnings are expected to fall 0.3 percent this year after rising almost 11 percent in 2022, according to Refinitiv IBES.

The companies must deliver on their earnings forecasts if they want to reassure investors, said Wes Golladay, an equity analyst at R.W. Baird. “They just recently provided guidance with their fourth quarter earnings and they have to deliver that,” he said.Investors are also closely watching office demand, as some of the largestas an area of growing concern, partly due to a surge in remote working since the COVID-19 pandemic.

 

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