Market Snapshot: REIT Returns Fall in June

The FTSE NAREIT All REIT Total Return Index fell 4.53 percent in June, marking a second consecutive month of declines. However, the index remained positive for the year, up 5.56 percent in 2010.

Despite the dip in June, broader market measures trailed REITs for the month and the first six months of year as well. The major indexes, such as the Russell 2000 and S&P 500, have all generated negative returns on the year through the end of June.

The Zacks.com equity research team noted that macroeconomic factors weighed on REITs in June, contributing to the industry’s downturn.

“The lackluster performance of the FTSE NAREIT Equity Index is primarily attributable to broader stock-market concerns fueled by the European debt crisis, which prompted investors to cut back their holdings,” the group wrote in a market analysis. “With the falling euro and strengthening dollar prices, speculations were rife about possible increases in cost of borrowings around the world that could destabilize global currency markets.”

As the global economy has shown signs of stabilization, REITs are leading the overall market recovery, according to Zacks.com: “With gradual stability in the overall industry, sector dynamics and individual companies’ strategies are currently receiving greater attention to capitalize on future growth potential.”

IN NEWS

REIT Returns Fall in June

FEATURED

COMMENTS

IN NEWS

UBS Focuses on Rebuilding U.S. REIT Practice

Identifying Best Practices Key to Going Green

Borrowers Struggling to Finance Smaller Deals

Industrial REIT Recovery Gaining Speed

United States Catching Up on Sustainability

Brookfield Announces Leadership Changes

Multifamily Momentum Will Continue

Capstead Counts on Low Risk Portfolio

Vornado’s Steven Roth Dishes on Conference Calls, Portfolio

REITs Up in April Despite Sluggish Economy

CONNECT WITH US

FEATURED

United States Catching Up on Sustainability

Multifamily Momentum Will Continue

Loan Market Needs 'Creative Destruction'

Sustainability Improves Bottom Line

Capstead Counts on Low Risk Portfolio

Explore REIT.com

User Name:
Comment:

Enter Code:	*