REIT returns underperformed the broader equity market in October, as all equities declined, but outperformed the market in the first ten months of the year.
The FTSE NAREIT All REITs Index, the broadest index of the U.S. REIT industry containing Equity and Mortgage REITs, fell 4.89 percent in October on a total return basis, while the FTSE NAREIT All Equity REITs Index fell 5.11 percent and the FTSE NAREIT Mortgage REITs Index declined 0.13 percent. In comparison, the S&P 500 fell 1.82 percent in October.
In the first ten months of 2016, the FTSE NAREIT All REITs Index gained 7.06 percent, the FTSE NAREIT All Equity REITs Index rose 6.57 percent and the FTSE NAREIT Mortgage REITs Index rose 20.01 percent. The S&P 500, in comparison, gained 5.87 percent in the year through October.
In the 12-month period ending October 31, the FTSE NAREIT All REITs Index was up 8.06 percent, the FTSE NAREIT All Equity REITs Index was up 7.78 percent, and the FTSE NAREIT Mortgage REITs Index was up 18.94 percent. The S&P 500 was up 4.51 percent in the same period.