Market Analysis & Research

The FTSE Nareit All Equity REITs index posted a total return of 5.5% last week, the strongest weekly gains since November 13, 2020.

Funds from operations (FFO) of all equity REITs rose 11.3% in the fourth quarter to $13.9 billion, after an increase of 10.3% in the third quarter, according to the Nareit T-Tracker®.

REIT balance sheets were strong heading into the pandemic with easy access to cash and lines of credit, and operating performance proved to be resilient.

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.