Industrial REITs own and manage industrial facilities and rent space in those properties to tenants. Some industrial REITs focus on specific types of properties, such as warehouses and distribution centers. Industrial REITs play an important part in e-commerce and are helping to meet the rapid delivery demand.
Companies such as Amazon, Home Depot, and Walmart rely on these REITs for last-mile delivery and distribution.
Who Invests in Industrial REITs?
Nearly 150 million Americans live in households that invest in REITs. With their historically competitive total returns and comparatively low correlation with other assets make them an attractive addition and diversifier for many Americans’ portfolios.
How to Invest in Industrial REITs
There are numerous industrial REITs listed on the FTSE Nareit US Real Estate Indexes available to invest in directly, or an individual can invest through REIT mutual funds or exchange-traded funds (ETFs).
Overview
1/31/2024, Source: FTSE
Number of REITs
11
Dividend Yield
2.96%
YTD Total Return
-5.20%
January Total Return
-5.20%
2023 Total Return
19.15%
Quarterly Data
Source: Nareit T-Tracker
| Q3 2023 | 2023 | |
|---|---|---|
| FFO ($M) | $2,002 | $6,166 |
| NOI ($M) | $2,383 | $6,856 |
| Dividends paid ($M) | $1,310 | $3,902 |
| SS NOI | 8.14% | |
| Occupancy Rate | 96.88% |
Performance Details
As of Q3 2023, Source: CoStar Group, Inc
Net Absorption (sq. ft.)
243,169,884
Net Completions (sq. ft.)
495,285,253
Performance Occupancy Rate
95.74%
Rent Growth YoY
10.3%
