John Barwick

The FTSE Nareit All Equity REITs Index, broader markets, and treasuries responded positively as investors broadly believe the Federal Reserve’s cycle of monetary policy tightening to be over.

The FTSE EPRA Nareit Developed Extended Index faced headwinds in September as investors grappled with rising bond yields in the United States and other developed markets.

U.S. REITs raised $4.1 billion from secondary debt and equity offerings in the third quarter of 2023, though this preliminary total will be revised upward when ATM program usage data become available.

The FTSE Nareit All Equity REITs Index declined 7.0% in September as the 10-year Treasury yield continued to climb, ending the month at 4.6%, while the All Equity REITs dividend yield ended the month at 4.4%.

REITs and broad market equities faced challenges in August, as the sharply rising 10-year Treasury yield hit 4.34%, its highest level since 2007, and then declined to 4.09% in the final week of the month.

On a global basis, data centers, industrial, and self-storage have been the strongest performing sectors in 2023.

Timber, office, and data centers led with returns of 15.9%, 10.4%, and 7.3%, respectively.

Effective with the 2023: Q2 quarterly review, the FTSE Nareit U.S. Real Estate Index Series has launched a property sector devoted to gaming REITs.

The FTSE Nareit All Equity REITs Index posted a total return of 0.3% in April and the FTSE EPRA Nareit Global Extended Index rose 1.5%.