REITs Rose Last Week to Finish July in Positive Territory

REIT share prices rose last week with the FTSE Nareit All Equity REITs index posting a positive return of 4.2%. Stock returns were up on balance for the month of July, trimming the decline year-to-date to 10.0%.

Gains last week were broad-based with every property sector higher. The REIT sectors supporting the digital economy continue to shine, with data center and industrial REITs posting total returns of 7.1% and 6.3%, while infrastructure had a 1.7% return. These sectors have recorded impressive total returns in 2020 of 15.0% to 33.7%.

Other sectors moved up by more modest amounts last week. Lodging/resorts had a total return of 0.7% following three weeks of declines. On the other hand, timber REITs extended their streak of weekly gains to five weeks with a total return of 5.0%, while home financing mREITs registered their fourth increase in a row.

 

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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.