The second quarter of 2020 shows the impact of the COVID-19 pandemic on the REIT industry. The quarter ended with negative returns for all sectors except industrial, data centers, and infrastructure. Those three sectors, tied strongly to e-commerce, had positive second quarter returns year-to-date with industrial up 2.3%, infrastructure up 16.6%, and data centers up 19.2%. The FTSE Nareit All Equity REITs index was down 13.3%, showing some positive gains over Q1 returns at -23.4%. The opposite was true for annual growth in FFO which was down 6.2% for equity REITs in Q1 and down even more in Q2 at – 29.3% annual growth. This is partly due to large losses in lodging/resorts and diversified. Industrial and data centers had strong positive annual growth in FFO, up 11.2% and 18.1% respectively. Leverage indicators showed no signs of stress with both debt to book assets and debt to market assets falling slightly in the second quarter to 50.8 and 35.6 respectively. Macroeconomic indicators show the full impact of the economic slow-down with GDP down an annualized 38.0% and a loss of over 13 million in payroll employment. Download the 2020 Q2 data.
Get quarterly REIT performance data and the latest REIT-related research sent to your inbox. Subscribe to Nareit Research, a quarterly enewsletter.
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