REITs fell behind the broader market in the second quarter of 2019 with the FTSE Nareit All Equity REITs index increasing 1.8%, compared to the S&P 500’s 4.3%. FFO growth softened in Q2 increasing 0.7% over the prior year. Underlying fundamentals, however, remain solid with occupancy rates near record high and leverage near historical low. This helped REITs take on more opportunities in Q2 with increased net acquisitions and more development in the pipeline.
1Source: FactSet, FTSE Nareit US, FTSE EPRA/Nareit Global
2Source: Nareit T-Tracker®, except where noted. Operational Performance is dollar weighted from the FTSE Nareit All Equity REITs index.
3Gross acquisitions less dispositions over the prior 4 quarters as a portion of undepreciated book value of total property holdings, reported in basis points
4Source: Green Street Advisors All REIT Premium to NAV
5Source: Bureau of Economic Analysis GDP report and Bureau of Labor Statistics Employment and CPI reports