Market Commentary

The FTSE Nareit All Equity REITs Index built on the standout performance of May, with a gain of 2.2% in June.

The FTSE Nareit All Equity REITs Index posted a total return of 5.3% in May, marking the strongest monthly performance of 2024 and outperforming broader equity markets.

Occupancy rates are indicators of property fundamentals that reflect the interaction of supply and demand.

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.

Nareit has updated its Global REIT Approach to Real Estate Investing study, documenting the global growth of REITs and the benefits, especially to developing nations, of enacting a REIT regime.

Leverage can be a double-edged sword, potentially amplifying investment gains on the upside and losses on the downside.

A 2024 Morningstar Associates analysis, sponsored by Nareit, found that the optimal portfolio allocation to REITs ranges from 4.2% to 20.0% across a range of lifestages.

The Strategic Property REIT Execution and Delivery (SPREAD) team at Teacher Retirement System of Texas (TRS) recognized the opportunity in the current divergence and seized it with a $400 million commitment for a tactical investment in U.S. public equity REITs. The investment yielded a 17.1% internal rate of return (IRR) with $47 million in profit.

For decades, defined benefit (DB) pension plans have been using real estate successfully within their investment portfolios.

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.