Market Commentary

Nareit research has shown that REIT total returns have tended to bounce back and even surge after periods of significant REIT underperformance relative to private real estate.

No Fed interest rate cuts? No problem: With their disciplined balance sheets, U.S. public equity REITs may not be immune from higher interest rates, but they are reasonably well-insulated from them. 

The FTSE Nareit All Equity REITs Index declined 4.9% in January. Broader markets posted narrow gains as the Russell 1000 rose 1.4% and the Dow Jones U.S. Total Stock Market rose 1.1%.

New research by Nareit estimates that 168 million Americans, or roughly 50% of American households, were invested in REIT stocks in 2023.

The FTSE EPRA Nareit Developed Extended Index rallied in the fourth quarter of 2023 as bond yields declined in the United States and other developed markets.

U.S. REITs raised $5.2 billion from debt and equity offerings in the fourth quarter of 2023; note that this total is preliminary and will be revised upward when ATM program usage data become available.

REITs Rebounded in the Fourth Quarter as Treasury Yields Declined

REITs supported an estimated 3.4 million fulltime equivalent (FTE) jobs in the U.S. in 2022, producing $263 billion in labor income.

The FTSE Nareit All Equity REITs Index rose 11.9% in November.