Real estate stocks advance as October rate cut odds rise, earnings meet Wall Street expectations

[REIT. Real estate investment trust. Financial Market. Hand pressing button on screen]
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Real estate stocks moved higher as the sector posted financial results, which largely met Wall Street expectations, and the retail inflation report fueled October rate cut hopes.

The cooler-than-expected September retail inflation report [https://seekingalpha.com/news/4508175-consumer-price-index-shows-slightly-cooler-than-expected-inflation-in-september] seems to have confirmed that the Federal Reserve will continue [https://seekingalpha.com/news/4508191-soft-retail-inflation-data-supports-feds-easing-cycle] its easing cycle in the next meeting.

"Inflation coming in weaker than expected further solidifies a continuation of the Fed's rate-cutting cycle, at least for the next two meetings," Skyler Weinand, chief investment officer, Regan Capital, said.

Currently, the odds of the Fed slashing interest rates by 25 basis points at the October 29 meeting stand at 98.3%, according to [https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html] CME's FedWatch tool.

Meanwhile, the real estate sector saw its quarterly earnings largely meet Wall Street expectations. Here is a look at the week's major earnings releases:

* Phillips Edison [https://seekingalpha.com/news/4507898-phillips-edison-ffo-of-0_65-in-line-revenue-of-182_67m-beats-by-5_6m] (PECO [https://seekingalpha.com/symbol/PECO]) - FFO IN-LINE, Revenue beats
* Elme Communities [https://seekingalpha.com/news/4507883-elme-communities-ffo-of-0_22-misses-by-0_01-revenue-of-62_1m-in-line] (ELME [https://seekingalpha.com/symbol/ELME]) - FFO misses, Revenue IN-LINE
* Healthpeak Properties [https://seekingalpha.com/news/4507870-healthpeak-properties-ffo-of-0_46-beats-by-0_01-revenue-of-705_87m-beats-by-24_99m] (DOC [https://seekingalpha.com/symbol/DOC]) - FFO beats, Revenue beats
* Eastgroup Properties [https://seekingalpha.com/news/4507862-eastgroup-properties-ffo-of-2_27-in-line-revenue-of-182_14m-in-line] (EGP [https://seekingalpha.com/symbol/EGP]) - FFO IN-LINE, Revenue IN-LINE
* Alpine Income Property Trust [https://seekingalpha.com/news/4507858-alpine-income-property-trust-ffo-of-0_46-beats-by-0_03-revenue-of-14_56m-misses-by-0_11m] (PINE [https://seekingalpha.com/symbol/PINE]) - FFO beats, Revenue misses
* CBRE [https://seekingalpha.com/news/4507373-cbre-non-gaap-eps-of-1_61-revenue-of-10_3b] (CBRE [https://seekingalpha.com/symbol/CBRE]) - Non-GAAP EPS of $1.61, Revenue beats
* Brandywine Realty Trust [https://seekingalpha.com/news/4507213-brandywine-realty-trust-ffo-of-0_16-in-line-revenue-of-121_42m-beats-by-3_14m] (BDN [https://seekingalpha.com/symbol/BDN]) - FFO IN-LINE, Revenue beats
* Veris Residential [https://seekingalpha.com/news/4507163-veris-residential-ffo-of-0_20-beats-by-0_04-revenue-of-73_44m-misses-by-0_3m] (VRE [https://seekingalpha.com/symbol/VRE]) - FFO beats, Revenue misses
* Equity Lifestyle Properties [https://seekingalpha.com/news/4507117-equity-lifestyle-properties-ffo-of-0_77-beats-by-0_02-revenue-of-393_3m-beats-by-3_91m] (ELS [https://seekingalpha.com/symbol/ELS]) - FFO beats, Revenue beats
* Crown Castle [https://seekingalpha.com/news/4507109-crown-castle-reports-q3-results] (CCI [https://seekingalpha.com/symbol/CCI]) - AFFO beats, Revenue beats
* Getty Realty [https://seekingalpha.com/news/4507084-getty-realty-ffo-of-0_66-beats-by-0_07-revenue-of-55_59m-beats-by-2_63m] (GTY [https://seekingalpha.com/symbol/GTY]) - FFO beats, Revenue beats
* Essential Properties [https://seekingalpha.com/news/4507078-essential-properties-ffo-of-0_52-beats-by-0_01-revenue-of-144_93m-beats-by-4_46m] (EPRT [https://seekingalpha.com/symbol/EPRT]) - FFO beats, Revenue beats
* Agree Realty [https://seekingalpha.com/news/4506338-agree-realty-ffo-of-1_09-beats-by-0_02-revenue-of-183_22m-beats-by-1_7m] (ADC [https://seekingalpha.com/symbol/ADC]) - FFO beats, Revenue beats

NEXT WEEK, the Fed will make its monetary policy announcement. The announcement can impact real estate stocks significantly.

Also, the focus will again be on the earnings releases. Next week is set to be a busy earnings week for the sector.

On Thursday, President Trump and President Xi Jinping are expected to meet face-to-face to address trade disputes. The event may prove a notable driver for stock price movements.

Additionally, the S&P/Case-Shiller House Price Index will be released on Tuesday.

COMPANY NEWS

* Entities tied to Makarora Management, along with Ares Alternative Credit funds, have agreed to acquire [https://seekingalpha.com/news/4508399-plymouth-industrial-agrees-to-be-acquired-by-makarora-for-21b] all outstanding shares of Plymouth Industrial REIT (PLYM [https://seekingalpha.com/symbol/PLYM]) in an all-cash deal valued at about $2.1B.
* Welltower (WELL [https://seekingalpha.com/symbol/WELL]) could announce a ~£4B deal to buy [https://seekingalpha.com/news/4507901-welltower-may-be-near-4b-deal-to-buy-barchester-healthcare---report] Barchester Healthcare, according to a posting on X from a Sky News reporter.
* RE/MAX Holdings (RMAX [https://seekingalpha.com/symbol/RMAX]) announced plans to expand [https://seekingalpha.com/news/4506626-remax-announces-plans-to-expand-in-morocco] in Morocco.
* Barclays upgraded [https://seekingalpha.com/news/4505644-gaming-and-leisure-properties-raised-to-overweight-at-barclays] Gaming and Leisure Properties (GLPI [https://seekingalpha.com/symbol/GLPI]) to Overweight from Equalweight as the REIT's stock has lagged its net lease peers and earnings are well positioned to beat consensus estimates.
* Lineage (LINE [https://seekingalpha.com/symbol/LINE]) has appointed [https://seekingalpha.com/news/4505533-lineage-announces-robb-lemasters-as-finance-chief] Robb LeMasters CFO, effective November 10.
* Getty Realty (GTY [https://seekingalpha.com/symbol/GTY]) raised [https://seekingalpha.com/news/4506400-getty-realty-raises-quarterly-dividend-by-32-to-0485share] its quarterly dividend by 3.2% to $0.485 per share, while Community Healthcare (CHCT [https://seekingalpha.com/symbol/CHCT]) increased [https://seekingalpha.com/news/4508046-community-healthcare-declares-0_475-dividend] it by 0.5% to $0.475 per share.
* Other major dividend announcements came from Apple Hospitality [https://seekingalpha.com/news/4505711-apple-hospitality-declares-0_08-dividend] (APLE [https://seekingalpha.com/symbol/APLE]), SITE Centers [https://seekingalpha.com/news/4506410-site-centers-declares-1_00-dividend] (SITC [https://seekingalpha.com/symbol/SITC]), Postal Realty Trust [https://seekingalpha.com/news/4507174-postal-realty-trust-declares-0_2425-dividend] (PSTL [https://seekingalpha.com/symbol/PSTL]), Omega Healthcare Investors [https://seekingalpha.com/news/4508366-omega-healthcare-investors-declares-0_67-dividend] (OHI [https://seekingalpha.com/symbol/OHI]), Easterly Government [https://seekingalpha.com/news/4507970-easterly-government-declares-0_45-dividend] (DEA [https://seekingalpha.com/symbol/DEA]), Highwoods Properties [https://seekingalpha.com/news/4507959-highwoods-properties-declares-0_50-dividend] (HIW [https://seekingalpha.com/symbol/HIW]), and JBG SMITH Properties [https://seekingalpha.com/news/4507955-jbg-smith-properties-declares-0_175-dividend] (JBGS [https://seekingalpha.com/symbol/JBGS]).

WINNERS & LOSERS

Among the S&P 500 real estate stocks, CoStar Group (CSGP [https://seekingalpha.com/symbol/CSGP]) was the biggest gainer of the week. The stock added 5.27% as the real estate company announced [https://seekingalpha.com/pr/20274643-costar-group-sets-the-record-straight-on-matterport-spaces] its continued support for Matterport Spaces across all media channels.

CoStar is scheduled [https://seekingalpha.com/symbol/CSGP/earnings/estimates?period=quarterly] to announce its Q3 earnings next week, and analysts expect a 19.15% year-over-year growth in revenue.

BXP (BXP [https://seekingalpha.com/symbol/BXP]), also scheduled to announce [https://seekingalpha.com/symbol/BXP/earnings/estimates?period=quarterly] earnings next week, was the second-largest weekly gainer. The stock advanced 4.39% from the prior week.

Meanwhile, Public Storage (PSA [https://seekingalpha.com/symbol/PSA]), also set to report [https://seekingalpha.com/symbol/PSA/earnings/estimates?period=quarterly] earnings next week, was the top decliner. The stock fell 1.75%.

For the broader real estate sector, Generation Income Properties (GIPR [https://seekingalpha.com/symbol/GIPR]) (+29.69% W/W), Peakstone Realty Trust (PKST [https://seekingalpha.com/symbol/PKST]) (+13.71% W/W), and Opendoor Technologies (OPEN [https://seekingalpha.com/symbol/OPEN]) (+11.31% W/W) led the weekly gainers.

Opendoor's gains come amid a return of the meme stocks rally [https://seekingalpha.com/news/4506694-return-of-the-meme-rally-beyond-meat-jumps-82-krispy-kreme-pops-30-and-gopro-spikes-18].

Here is a look at the subsector performances:
[S&P, Nareit]
Percentage-wise price change across real estate indices

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