Market Commentary

The FTSE EPRA Nareit Developed Extended Index showed resilience in a tumultuous April, posting a total return of 1.3%. On a year-to-date basis, the index has returned 4.4%.

The FTSE Nareit All Equity REITs Index declined in a volatile April, bouncing back from a low of -11.9% on April 8 to end the month down 2.0%.

The game-on, game-off nature of tariff actions has introduced uncertainty into the U.S. financial and economic markets.

In 2024, U.S. listed REITs distributed approximately $66 billion in dividends, as reflected in Nareit’s REIT Industry Tracker.

The FTSE EPRA Nareit Developed Extended Index declined 1.4% in March and has risen 3.1% on a year-to-date basis as of March 31.

U.S. REITs raised $12.2 billion from secondary debt and equity offerings in the first quarter of 2025.

During the current lingering public-private real estate valuation dislocation, REIT implied cap rates have reacted to movements in the U.S. 10-year Treasury yield in meaningful ways.

The FTSE Nareit All Equity REITs Index declined 2.4% in March as broader market equities suffered greater losses, with the Russell 1000 declining 5.8% and the Dow Jones U.S. Total Stock Market falling 5.9%.

The lingering public-private real estate valuation divergence has been disruptive, but it continues to offer potential buying opportunities for investors. 

Although the lingering CRE valuation divergence has been disruptive, it has created opportunities for investors and benefited REITs. 

The growing use of target-date funds (TDFs) remains the dominant investment-related trend in the defined contribution and individual retirement account markets, and REITs continued to be a critical component of TDFs in 2024.

The FTSE EPRA Nareit Developed Extended Index rose 2.8% in February and was up 4.6% on a year-to-date basis at month-end.