Market Commentary

Total returns for the FTSE Nareit All Equity REITs index moved into positive territory last week, with a 1.2% weekly gain.

REITS rebounded in the second week of 2021, with a 1.9% total return on the FTSE Nareit All Equity REITs index that reversed most of the decline in the prior week.

REITs declined in the opening week of 2021, with a -2.4% total return on the FTSE Nareit All Equity REITs index.

The path of the pandemic and the vaccines will continue to hold the keys for the economy and commercial real estate, and for stock markets, in 2021.

REIT share prices rose slightly during the week ended December 18, with the FTSE Nareit All Equity REITs index posting a weekly total return of 0.5% and a year-to-date return of -6.9%.

CRE markets, and the economy as a whole are bolstered by the solid fundamentals that were in place when the pandemic hit, in sharp contrast to prior recessions.

REIT share prices fell during the week ended December 11, with the FTSE Nareit All Equity REITs index posting a total return of -2.5%.

Most REIT property sectors were up slightly for the week.

The FTSE Nareit All Equity REITs index posted a total return of -1.1% for the week ended Nov. 20, following weekly increases of 4.3% and 6.9% earlier in the month.

Diversified REITs saw FFO swing from negative $102 million in the second quarter to positive $962 million in Q3.

The FTSE Nareit All Equity REITs index posted a total return of 6.9% last week, after a 4.3% gain the week before.

REITs outperformed the broader markets by a wide margin, especially those property sectors that had been most impacted by the shutdowns and social distancing measures.