Industry data and research highlights the investment performance benefits and opportunities of REIT-based real estate investments to institutional and individual investors, financial advisers, policymakers and the media. Nareit provides a range of stock performance data for both domestic and global REITs as well as a series of industry performance measures tracked daily, monthly and yearly.
Return Correlations between REITs and the Broad Stock Market by Property Type
REIT returns generally have low correlations with returns from the broad stock market. Some REIT property sectors—including Health Care, Self Storage, Residential, Infrastructure, and Data Centers—seem to be especially defensive with average correlations of 65 percent or less even during periods encompassing market crises.
May 21, 2018
REIT Funds From Operations Totaled $15.3 Billion in 2018:Q1
Total REIT FFO was 3.6 percent higher than in the fourth quarter of 2017 and 6.0 percent above over one year ago.
May 14, 2018
REIT Total Returns by Property Type: The Value of Exposure to All Sectors of the Real Estate Market
It should come as no surprise that the top-performing sector of the REIT market varies through time, suggesting that most investors will want to maintain exposure to every part of the real estate asset class.
REITWatch is a monthly statistical publication intended to provide a snapshot of the REIT industry. It includes data derived from the FTSE Nareit U.S. Real Estate Index Series and the FTSE/EPRA Nareit Global Real Estate Index Series in addition to tracking the performance of individual REITs.
The macroeconomy and real estate markets had a good performance in 2017. Real GDP rebounded to annualized growth rates above 3.0 percent in the second and third quarters. Commercial properties in most markets enjoyed sustained growth of demand, high occupancy rates, rising rents and rising prices. These advantageous conditions may well continue into 2018, but there are several risks that might cause a change in the outlook.
Nareit commissioned EY to estimate the current economic contribution of all U.S. REITs (including public listed, public non-listed, and private REITs) in the United States. Today, REITs in the United States own nearly $3 trillion of gross real estate assets and public listed equity REIT portfolios included more than 290,000 properties at year-end 2016. The total economic contribution of U.S. REITs in 2016, the most recent year of complete information, was an estimated 2 million full-time equivalent (FTE) jobs and $118.6 billion of labor income.
If there has been any theme to the economic recovery over the past eight years, it has been “two steps forward, one step back,” and the first quarter is one of those steps back. The medium-term outlook for both the macroeconomy and for real estate and REITs, however, remains positive.
REITWatch is a monthly statistical publication intended to provide a snapshot of the REIT industry. It includes data derived from the FTSE Nareit U.S. Real Estate Index Series and the FTSE/EPRA Nareit Global Real Estate Index Series in addition to tracking the performance of individual REITs.
Market Commentary
Return Correlations between REITs and the Broad Stock Market by Property Type
REIT returns generally have low correlations with returns from the broad stock market. Some REIT property sectors—including Health Care, Self Storage, Residential, Infrastructure, and Data Centers—seem to be especially defensive with average correlations of 65 percent or less even during periods encompassing market crises.
REIT Funds From Operations Totaled $15.3 Billion in 2018:Q1
Total REIT FFO was 3.6 percent higher than in the fourth quarter of 2017 and 6.0 percent above over one year ago.
REIT Total Returns by Property Type: The Value of Exposure to All Sectors of the Real Estate Market
It should come as no surprise that the top-performing sector of the REIT market varies through time, suggesting that most investors will want to maintain exposure to every part of the real estate asset class.