Calvin Schnure

The recovery in REIT earnings from declines early in the pandemic continued in the first quarter of 2021, according to data recently released in the Nareit T-Tracker®.

Residential REITs edged up 0.1%, but all other property sectors were in the red.

The two biggest factors for the outlook for long-term interest rates (which have the most direct impact on commercial real estate markets) are economic growth and the likelihood that such growth will lift inflation higher.

REIT share prices dipped last week following a six week string of increases, as the FTSE Nareit All Equity REITs Index had a total return of -0.7%.

Multifamily markets rebounded in the first quarter with the second-highest quarterly demand growth on record, according to data recently released by CoStar.

The FTSE Nareit All Equity REITs Index posted a total return of 1.3%. Broader markets, in contrast, were flat-to-down.

The flattening out of overall index, however, masks divergent trends among different sectors of the overall commercial real estate market.

The REITs’ stock market path through the recovery to date can be usefully described as three distinct periods.

REIT stocks continued their steady recovery with the fifth straight weekly gain in the FTSE Nareit All Equity REITs Index.

These latest gains, the fourth straight weekly increase, lifted year-to-date returns to 13.5%.

Leisure travel is starting to show signs of recovery, indicated by a spring break bump at our nation’s airports, and one area that is practically bursting to get back to business are weddings and wedding receptions.

REIT share prices moved higher last week, with a 0.3% total return on the FTSE Nareit All Equity REITs Index.