With Real estate / REITs (VNQ) down 1.7%, this looks like a sector-led move rather than a company-specific surprise.
The real estate sector, as represented by the VNQ ETF, traded lower due to continued concerns over rising interest rates. Recent commentary highlights that higher borrowing costs are expected to slow down deal activity and negatively impact property valuations. This sentiment was echoed in the housing market, with reports of 30-year mortgage rates nearing 7% creating headwinds for homebuilders and buyers. Additionally, the Mortgage Bankers Association reported a decrease in mortgage applications as rates climbed to their highest levels since May 2024.