06/01/2015
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NAREIT recently released a new set of performance measures for stock-exchange listed REITs, the Total REIT Industry Tracker Series, or T-Tracker. There are separate series: the FFO Tracker, with Funds From Operations; the NOI Tracker, with Net Operating Income; and the Dividend Tracker, with total Dividends Paid by both equity and mortgage REITs.
- The U.S. listed Equity REITs had total FFO of $11.2 billion in 2015:Q1, up 8.0% from a year earlier (chart below). This is a bit of a slowing from the growth in 2013 and 2014, of 22% and 21%, respectively. The U.S. economy decelerated in the first quarter, and real estate isn’t immune to the slowing;
- We do expect the economic fundamentals for REITs and real estate to regain momentum over the rest of this year;
- The T-Tracker has historical data which demonstrate the longer term trends in REIT performance. Recent growth in FFO caps a solid recovery over the past five years, during which total FFO has increased at an 18.1% annual average rate;
- Total NOI of U.S. listed equity REITs was $18.3 billion in the first quarter, up 11.6% from the same quarter a year earlier (second chart below). Like the case with FFO, this is a bit of a slowing from recent trends;
- Total dividends paid by listed equity and mortgage REITs were $11.8 billion in the first quarter, up 20.7% from a year ago (final chart below).
- For the year 2014 as a whole, total dividends paid were $42 billion, underscoring the important role REITs play in providing income to investors.
The T-Tracker Series contains a wealth of information that should prove useful to virtually anyone who invests, analyzes or researches REITs and real estate. Detailed tables on FFO, NOI and Dividends Paid by property type, as well as spreadsheets with historical data, are available.
Please contact us if you have questions about the T-TrackerTM Series.
