The FTSE Nareit All Equity REITs Index rose 1.5% in June, extending its year-to-date total return to 14.9%. Broader equity markets declined in the month, with the Dow Jones U.S. Total Stock Market falling 0.4% while the Russell 1000 declined 0.5%. On a year-to-date basis, REITs outperformed the broad market with the Dow Jones U.S. Total Stock Market up 11.1% and the Russell 1000 up 10.3%.
The 10-year Treasury yield was steady over the month, closing at 4.44%, roughly where it closed in May. The dividend yield on the FTSE Nareit All Equity REITs Index ended the month at 3.68% and the FTSE Nareit Mortgage REITs Index yielded 12.75%, compared to 1.03% for the S&P 500.
Property Sector Performance
As reflected in the chart above, most property sectors have posted positive gains for the year. Lodging/resorts leads with a return of 42.8%, followed by specialty and data centers with returns of 34.1% and 33.2% respectively.
As reflected in the table above, office led in June, with a total return of 12.2%, followed by lodging/resorts at 12.0%, and health care at 8.0%.
The FTSE Nareit Mortgage REITs Index gained 2.5% in June. Home financing REITs rose 4.2% during the month, while commercial financing REITs declined 2.4%. Year-to-date, the Mortgage REITs index has gained 2.3% with home financing rising 5.2% and commercial financing declining 5.6%.