REITs Up Again Last Week, Gaining in Four Out of the Past Five Weeks

REITs gained last week, and have been up four out of the past five weeks. The FTSE Nareit All Equity REITs index posted a total return of 5.2%, a bit ahead of the 3.1% return on the Russell 1000.

Nearly all sectors recorded increases, the one exception being a negative 1.0% total return among home financing mREITs. Returns by sector were within a narrower range than in prior weeks, with all sectors having single-digit increases. Self storage led the way with a 9.8% total return last week, followed by infrastructure (7.9%) and office (7.8%).

These small but steady weekly gains are eroding the cumulative declines that occurred in the early stages of the COVID-19 crisis. The All Equity REITs index had been down as much as 37.6% on March 23, but since then has recovered more than half of those losses, to be down 15.3% YTD.

Data center REITs and infrastructure REITs, which are getting a tailwind from the surge in Zoom meetings and other online communications, have had robust returns of 19.3% and 17.9%, respectively.

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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.