Market Commentary

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.

Although many institutional investors focus their property investment strategies on private equity real estate, current and expected market conditions tend to favor public real estate.

According to the 2023 Hodes Weill/Cornell Real Estate Allocations Monitor, institutions consider REITs to be a complement to private real estate in terms of filling allocation needs and addressing liquidity objectives.

The FTSE Nareit All Equity REITs Index, broader markets, and treasuries responded positively as investors broadly believe the Federal Reserve’s cycle of monetary policy tightening to be over.

Nareit’s annual update of REIT property counts and estimated gross asset values by state and property sector is now available on the REITs Across America website.

The FTSE EPRA Nareit Developed Extended Index faced headwinds in September as investors grappled with rising bond yields in the United States and other developed markets.

U.S. REITs raised $4.1 billion from secondary debt and equity offerings in the third quarter of 2023, though this preliminary total will be revised upward when ATM program usage data become available.

Throughout 2022 and 2023, the public and private real estate markets have been a tale of two cities.

The FTSE Nareit All Equity REITs Index declined 7.0% in September as the 10-year Treasury yield continued to climb, ending the month at 4.6%, while the All Equity REITs dividend yield ended the month at 4.4%.

Infrastructure, data centers, and health care each have more than a 10% share of assets.