10/05/2021 | by

Nareit has released its Q3 REIT Performance Report showing that REITs continued to make gains. Some key findings include:

  • In the third quarter of 2021, the FTSE Nareit All Equity REIT Index continued to generate positive returns, rising 0.23% in Q3 after a 12.03% increase in Q2.
  • The top performing REIT sectors on a YTD basis at the end of Q3 included:
    • Self Storage – up 39.1%
    • Residential – up 36.29%
      • Apartments – up 40.50%
      • Single Family Homes – up 30.10%
      • Manufactured Homes – up 24.97%
    • Retail – up 32.11%
      • Regional Malls – up 56.55%
      • Shopping Centers – up 45.51%
      • Free Standing – up 7.65%
    • Specialty – up 28.29%
    • Industrial – up 21.96%

REIT performance by sector can be seen in the chart below:

Q3 2021 Sector data
  • REITs conducted 57 equity and debt offerings in Q3 2021 raising $24.3 billion, including
    • $8.38 billion in common shares
    • $1.98 billion in preferred shares
    • $13.38 billion in secondary debt offerings
  • The FTSE Nareit All Equity REITs Index reported a dividend yield of 3.18% in Q3, more than double the 1.32% dividend yield paid by the S&P 500.
  • In Q3, year to date there were $54 billion in M&A deals (pending or completed),
    • $38 billion of which is attributed to REIT-to-REIT transactions
    • $16 billion of which represents privatizations.

The entire Q3 report can accessed here .

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