REITs rebounded last week with a 5.2% total return, according to the FTSE Nareit All Equity REITs index, ending a string of declines over the three prior weeks.
Last week’s gains brought the total return year-to-date to -11.6% as of July 2nd. REITs have recovered more than three-quarters of the 42% decline from the pre-crisis peak in late February to the trough in late March.
All property sectors of equity REITs rose last week. Self storage led the way with a 6.5% total return, but the infrastructure, industrial, residential and retail sectors were not far behind. Last week’s gains brought total returns of industrial REITs into positive territory for the year-to-date, and pushed this year’s total returns for data centers to 23%. Infrastructure REITs have delivered total returns of 18.9% so far this year. Mortgage REITs, however, declined last week, with both home financing and commercial mREITs posting a negative total return of about one-half percent.