The Market Commentary blog on reit.com presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. The Nareit economics team offers their commentary on the state of the market, the outlook for commercial real estate and breaking macroeconomic news. The opinions set forth here are solely those of its author(s), and do not necessarily reflect the views of the Nareit or its membership.
What’s Ahead for Commercial Real Estate and REITs During the Economy’s Reopening 2.0?
The pandemic appears to be at a major turning point as vaccine production and distribution have hit stride. The economy will reach a major turning point soon afterwards, which will raise several issues for real estate and REITs.
REITs Rose Last Week
Last week’s gains lifted year-to-date returns to 9.6%.
Retail Rebound: Brick-and-Mortar Resilience
Sales through brick-and-mortar locations are likely to rebound later this year and next, as the spread of vaccines makes it safe to spend more time in shops and malls again.
REIT Share Prices Declined Last Week
REIT share prices declined last week with a -1.2% total return on the FTSE Nareit All Equity REITs Index.
Rebound Underway: Real Estate and REIT Earnings Showing Recovery
Earning in the overall U.S. listed REIT sector have recovered half the decline that took place last spring as shutdowns spread across the country.
REITs Record Strongest Weekly Gains of the Year
The FTSE Nareit All Equity REITs index posted a total return of 5.5% last week, the strongest weekly gains since November 13, 2020.
FFO Rose 11.3% in Fourth Quarter: Nareit T-Tracker
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®.
Tracking Credit Rating Changes During the Pandemic
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.
REIT Returns Edged Lower Last Week
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
REITs edged lower last week with a -1.2% total return on the FTSE Nareit All Equity REITs Index.
REITs and the Pandemic: A Closer Look at the Last 12 Months
The last 12 months have seen high levels of volatility and sharp swings in sentiment.
REITs Declined Last Week, Reversing Part of Recent Gains
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%