Market returns for the REIT industry were negative in the second quarter of 2022 with all equity REITs down 14.7% and mortgage REITs down 15.8%. The S&P 500 was down 16.1%. In August, the only property sector with positive returns was self storage which was up 1.7%. Despite poor stock performance, REIT operating performance remained strong in the second quarter. Total REIT FFO rose 9.8% from the prior quarter and 15.4% over the past four quarters. The sectors with the strongest FFO growth from 2021:Q2 to 2022:Q2 were lodging/resorts (up 1295.2%), self storage (up 45.9%), and residential (up 20.6%). REIT balance sheets continued to remain strong and REITs increased their weighted average term to maturity on debt to 87 months (over 7 years). The unemployment rate declined remained constant at 3.6%. Download the 2022 Q2 data.
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1: FactSet, FTSE Nareit US, FTSE EPRA/Nareit Global
2: Nareit T-Tracker®, except where noted. Operational Performance is dollar weighted from the FTSE Nareit All Equity REITs index.
3: Gross acquisitions less dispositions over the prior 4 quarters as a portion of undepreciated book value of total property holdings, reported in basis points
4: Green Street Advisors All REIT Premium to NAV 5Source: Bureau of Economic Analysis GDP report and Bureau of Labor Statistics Employment and CPI reports