Market Commentary

The FTSE Nareit All Equity REITs Index posted a total return of 1.3%. Broader markets, in contrast, were flat-to-down.

The FTSE EPRA Nareit Global Real Estate Extended Index Series broadens property sector coverage to include additional securities beyond those currently eligible for the FTSE EPRA Nareit Global Real Estate Index Series including Cell Towers and Timber.

The flattening out of overall index, however, masks divergent trends among different sectors of the overall commercial real estate market.

The REITs’ stock market path through the recovery to date can be usefully described as three distinct periods.

REIT stocks continued their steady recovery with the fifth straight weekly gain in the FTSE Nareit All Equity REITs Index.

These latest gains, the fourth straight weekly increase, lifted year-to-date returns to 13.5%.

Leisure travel is starting to show signs of recovery, indicated by a spring break bump at our nation’s airports, and one area that is practically bursting to get back to business are weddings and wedding receptions.

REIT share prices moved higher last week, with a 0.3% total return on the FTSE Nareit All Equity REITs Index.

From 2016 to 2019, the jobs equivalent contribution from REITs has risen by 600 thousand.

The recovery in REIT share prices gained momentum in March as the FTSE Nareit All Equity REITs index delivered a total return of 5.5%.

The pandemic appears to be at a major turning point as vaccine production and distribution have hit stride. The economy will reach a major turning point soon afterwards, which will raise several issues for real estate and REITs.

Last week’s gains lifted year-to-date returns to 9.6%.