John Barwick

The FTSE Nareit All Equity REITs Index declined 4.9% in January. Broader markets posted narrow gains as the Russell 1000 rose 1.4% and the Dow Jones U.S. Total Stock Market rose 1.1%.

The FTSE EPRA Nareit Developed Extended Index rallied in the fourth quarter of 2023 as bond yields declined in the United States and other developed markets.

U.S. REITs raised $5.2 billion from debt and equity offerings in the fourth quarter of 2023; note that this total is preliminary and will be revised upward when ATM program usage data become available.

REITs Rebounded in the Fourth Quarter as Treasury Yields Declined

The FTSE Nareit All Equity REITs Index rose 11.9% in November.

The FTSE Nareit All Equity REITs Index, broader markets, and treasuries responded positively as investors broadly believe the Federal Reserve’s cycle of monetary policy tightening to be over.

The FTSE EPRA Nareit Developed Extended Index faced headwinds in September as investors grappled with rising bond yields in the United States and other developed markets.

U.S. REITs raised $4.1 billion from secondary debt and equity offerings in the third quarter of 2023, though this preliminary total will be revised upward when ATM program usage data become available.

The FTSE Nareit All Equity REITs Index declined 7.0% in September as the 10-year Treasury yield continued to climb, ending the month at 4.6%, while the All Equity REITs dividend yield ended the month at 4.4%.

REITs and broad market equities faced challenges in August, as the sharply rising 10-year Treasury yield hit 4.34%, its highest level since 2007, and then declined to 4.09% in the final week of the month.