Market Commentary

The FTSE Nareit All Equity REITs Index fell 7.9% in April as the yield on the 10-Year Treasury hit its highest level since October 2023.

U.S. REITs raised $17.6 billion from secondary debt and equity offerings in the first quarter of 2024.

Retailers have long been adept at catering to consumers’ desires to get more for less. In the mid-1960s, Kmart started its Blue Light Specials.

At the start of the year, economists and financial markets anticipated that the Federal Open Market Committee (FOMC) would embark on a series of target fed fund rate cuts in 2024.

The FTSE EPRA Nareit Developed Extended Index rose 3.2% in March, narrowly outperforming global equities as the FTSE Global All Cap rose 3.1%.

Today’s property market is generally marked by supply-demand imbalances, yet not all segments of the commercial real estate market have exhibited the same levels of operational performance.

Commercial property performance and valuation metrics diverge from time to time.

The FTSE Nareit All Equity REITs Index rose 1.8% in March. Broader equity markets continued to outperform, as the Russell 1000 and Dow Jones U.S. Total Stock Market each rose 3.2%.

Nareit tracks quarterly investment holdings for the 27 largest actively managed real estate investment funds focusing on REIT investment for insight on expert investor sentiment.

This is a guest commentary written by Annie Xiao, portfolio manager at the Employee Retirement System of Texas (Texas ERS).

The FTSE Nareit All Equity REITs Index rebounded from a weak January, rising 1.9% in February. REITs underperformed broader markets as the Russell 1000 and Dow Jones U.S. Total Stock Market both rose 5.4%.

Nareit analysis of data from Preqin, a financial research firm that tracks investments in alternative assets, indicates that the use of REITs by pension plans has been increasing, particularly among the largest, most sophisticated plans.