The first complete quarterly measure of the U.S. listed REIT industry’s operating and dividend performance
NAREIT’s Total REIT Industry Tracker Series – the NAREIT T-Tracker® – is the first quarterly performance measure of the heartbeat of the U.S. listed REIT industry. The series includes three key REIT industry measures: the NAREIT FFO Tracker, which monitors equity REIT Funds From Operations; the NAREIT NOI Tracker, which reports the equity REIT industry’s Net Operating Income; and the NAREIT Dividend Tracker, which monitors the dividends U.S. listed equity and mortgage REITs pay to their shareholders.
Key Takeaways For Q1 2017
- Total FFO of the listed U.S Equity REIT industry was $14.3 billion in the first quarter of 2017, down 3.9 percent from $14.9 billion in the fourth quarter of 2016. Total FFO was 8.1 percent higher than during the first quarter of 2016.
- Total Equity REIT NOI was $22.0 billion in first quarter of 2017, up 0.7 percent from $21.9 billion in prior quarter. NOI was 7.7 percent higher than one year earlier.
- Same-Store NOI (SS NOI) rose 3.7 percent from the same quarter one year ago. The top-performing Equity REIT property segments on an SS NOI basis in the first quarter of 2017 were: Data Centers (8.0 percent); Single Family Homes (7.3 percent); and Industrial (5.9 percent).
- Dividends paid by both Equity and Mortgage REITs totaled $12.5 billion, a 5.4 percent decrease from the fourth quarter of 2016. The quarter-over-quarter change was primarily due to a large special dividend paid by a single REIT during the fourth quarter of 2016. Over 80 percent of Equity and Mortgage REITs paid dividends in 2017:Q1 that were equal or greater than dividend payments in the prior quarter.
- The occupancy rate of properties owned by of all listed Equity REITs reached a new record high of 93.9 percent in the first quarter of 2017. This is 30 basis points higher than the occupancy rate in the prior quarter, and 84 basis points above one year ago.
“This real estate cycle shows all the signs that it will continue, despite some soft numbers last quarter. It’s quite common for the macro economy and for the real estate sector to have slow periods in the middle of long expansions, and such times are often followed by a return to above-trend growth,” said Calvin Schnure, NAREIT’s Senior Vice President of Research & Economic Analysis. “High occupancy rates and steady growth of NOI provide support for the outlook for REITs.”
The NAREIT Total Equity REIT Industry Tracker Series (NAREIT T-Tracker) is provided for informational, non-commercial purposes only. The T-Tracker data are not intended to constitute investment advice of any kind and may not be relied on as such. Historical data and analysis do not predict future performance. Data is provided "as is" and NAREIT does not warrant the accuracy, completeness, non-infringement, originality, timeliness or any other characteristic of the T-Tracker data.
This information is solely educational in nature and is not intended by NAREIT to serve as the primary basis for any investment decision. NAREIT is not acting as an investment adviser, investment fiduciary, broker, dealer or other market participant, and no offer or solicitation to buy or sell any security or real estate investment is being made. Investments and solicitations for investment must be made directly through an agent, employee or representative of a particular investment or fund and cannot be made through NAREIT. NAREIT does not allow any agent, employee or representative to personally solicit any investment or accept any monies to be invested in a particular security or real estate investment.
All REIT data are derived from, and apply only to, publicly traded securities. While such data are believed to be reliable when prepared or provided, such data are subject to change or restatement. NAREIT does not warrant or guarantee such data for accuracy or completeness, and shall not be liable under any legal theory for such data or any errors or omissions therein. See http://reit.com/TermsofUse.aspx for important information regarding this data, the underlying assumptions and the limitations of NAREIT’s liability therefor, all of which are incorporated by reference herein.
Performance results are provided only as a barometer or measure of past performance, and future values will fluctuate from those used in the underlying data. Any investment returns or performance data (past, hypothetical or otherwise) shown herein or in such data are not necessarily indicative of future returns or performance.