REITs rebounded in March, posting a total return of 7.1% for the FTSE Nareit All Equity REITs index and 6.5% for the FTSE Nareit Equity REITs index as Pandemic response measures continued to abate and amidst the geopolitical turmoil created by Russia’s invasion of Ukraine. Through February 23rd the All Equity REITs index was down 13.6% year-to-date, but by March 31st had trimmed its losses for the year to -5.3% while the Equity REITs index posted returns of -11.9% and -3.9% over these respective periods. Broader markets were all positive in March, with a total return of 3.2% for the Dow Jones U.S. Total Stock Market and 3.4% on the Russell 1000. Year-to-date, the Total Stock Market is down 5.4% and the Russell 1000 is down 5.1%.
Most property sectors were positive in March, led by health care with a total return of 11.9%, infrastructure at 11.5%, and self storage at 10.2. Timber was the sole sector posting negative returns in March at -1.2%. Mortgage REITs trailed Equity REITs in March, with returns of 4.2% for home financing mREITs and 1.8% for commercial financing mREITs.
Globally, real estate performance was varied in March. The FTSE EPRA/Nareit Global index was up 4.3% for the month, with total returns of 4.6% from developed markets and 0.2% from emerging markets. The Global index (developed plus emerging) was led by the Middle East & Africa with returns of 8.5%, followed by the Americas at 6.4%, Asia/Pacific at 1.6% and Europe at 0.0%. Developed markets were led by North America, with returns of 6.4%, followed by Asia at 2.8%; EMEA and Europe were flat in March. Emerging markets were also led by returns from the Middle East & Africa and Americas, with returns of 9.8% and 9.0% respectively.
