Market Conditions Calm a bit for REIT Returns

Stock market conditions have calmed down a bit, with more moderate moves lately in the FTSE Nareit All Equity REITs index. Last week the index posted a total return of negative 4.5%, the second week of single-digit moves after much sharper gyrations both up and down in the early stages of the crisis.

By property sector, last week’s returns were all in negative territory, although for some sectors, just barely. Data centers had a total return of -0.1%, and are up 19.1% year-to-date. Timber, industrial, lodging/resorts and infrastructure all had declines of less than 4%. Infrastructure is also in positive territory for the year so far, with a total return of 11.7%.

Reporting for first quarter earnings is just getting underway. Many investors may be in a wait-and-see mode for information not only on first quarter performance, but also what management sees for the period ahead.

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The Market Commentary blog on reit.com presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. The Nareit economics team offers their commentary on the state of the market, the outlook for commercial real estate and breaking macroeconomic news. The opinions set forth here are solely those of its author(s), and do not necessarily reflect the views of the Nareit or its membership. For more, see our Terms of Use.