John Barwick

In September, REITs and stocks posted their worst monthly performance since March 2020, as a hawkish Federal Reserve warned that measures to bring inflation under control could bring “some pain” to U.S. financial markets, and Treasury yields continued to rise.

The FTSE Nareit All Equity REITs Index posted a total return of -5.9% and the FTSE Nareit Equity REITs Index fell 6.0% in August.

Global real estate turned in their strongest monthly performance since December 2021 in July, outperforming broader markets.

The FTSE Nareit All Equity REITs Index posted a total return of 8.6% and the FTSE Nareit Equity REITs Index rose 9.1% in July.

The North American regional weight in the FTSE EPRA Nareit Developed index series increased from 41% to 65%.

Over the past two decades, the structure of the economy has changed dramatically, and we see this most clearly in how work, shopping, and leisure are increasingly connected to the digital economy.

Financial markets continue to face the headwinds of tightening monetary policy and inflationary pressures driven by food and energy prices.

U.S. REITs raised $13.6 billion from secondary debt and equity offerings in the second quarter of 2022, down from $27.5 billion raised during the same period in 2021.

REITs outperformed broader markets by nearly 1.3% in June, as the Federal Reserve hiked interest rates by 75 basis points and signaled a more aggressive approach to fighting inflation in the coming months.

The FTSE EPRA/Nareit Global Real Estate Index Series underperformed broader markets in May as turbulent trading conditions persisted.

REITs underperformed broader markets for the month of May but outperformed on a year-to-date basis as equity markets continued to be buffeted by heightened volatility.

The FTSE EPRA/Nareit Global Real Estate Index Series outperformed broader markets in April.