The FTSE Nareit All Equity REITs Index encompasses 13 different property sectors with assets as varied as restaurants, cell phone towers, and timberland. This diversification clearly demonstrates that REITs have kept pace structural changes in the economy.
2024 REIT Outlook
The Diverse Landscape of REIT-Based Real Estate Investment
The Diverse Landscape of REIT-based Real Estate Investment
The FTSE Nareit All Equity REITs Index encompasses 13 different property sectors with property uses dedicated to residences, working spaces, shopping destinations, entertainment venues, goods distribution, data transmission and storage, and much more. Such diversification is powerful and clearly demonstrates that REITs have kept pace with structural changes in the U.S. economy.
The animated chart shows the share by equity market capitalization of each property sector on a quarterly basis since 2010.
- At the beginning of the period, only nine of the current 13 sectors are represented, with retail (24%), residential (14%), office (14%), and health care (13%) dominating the index.
- By the end of the period, all 13 sectors are included, with residential (15%) and retail (14%) still dominating, but with industrial (14%)
REITs also offer extensive geographic diversification. The FTSE EPRA Nareit Global Real Estate Extended Index is the broadest global measure of real estate performance, tracking more than 500 companies across 40 countries with a total equity market cap of $2.1 trillion.
The animated map shows the countries and regions with listed real estate in the FTSE EPRA Nareit Global Real Estate Extended Index in the order that they entered the index.
Nicole Funari is vice president of research at Nareit where she provides property and sector-level analysis as well as research on investors and commercial real estate markets.