Market Analysis & Research

The pattern across property sectors continues to be a near-mirror image during the recovery from what happened during the pandemic market decline one year ago.

REITs edged lower last week with a -1.2% total return on the FTSE Nareit All Equity REITs Index.

The last 12 months have seen high levels of volatility and sharp swings in sentiment.

REIT share prices declined last week, reversed a part of their recent gains, with the FTSE Nareit All Equity REITs recording a total return of -0.9%

This is the fourth week out of the past five that REITs have gained more than 1%, and last week’s increase put REITs up 4.8% for the first six weeks of the year.

All property sectors rose, led by a 9.5% return for timber REITs and 6.6% for lodging/resorts.

The pandemic left a deep mark on commercial real estate in the fourth quarter as falling demand for leased space led to a rise in vacancy rates across most property types, and rents declined.

The FTSE Nareit All Equity REITs index posted a total return of -0.7%, compared to a 3.4% loss on the Russell 1000. 

Trends in the composition of major components of the U.S. economy are the complete reverse of past recessions.

Total returns for the FTSE Nareit All Equity REITs index moved into positive territory last week, with a 1.2% weekly gain.