The Single Family Home property segment led the U.S. REIT market in the first 11 months of 2016 with a 28.34 percent total return. Single Family Home REITs are benefitting from an environment in which many potential home buyers cannot meet today’s tighter lending standards.
Ten other segments of the Equity REIT market also exceeded the 3.99 percent total return of the FTSE NAREIT All Equity REITs Index in the first 11 months of the year, six of them with double-digit total returns. They are:
- Industrial, up 24.98 percent
- Data Centers, up 18.41 percent
- Specialty, up 16.69 percent
- Lodging/Resorts, up 14.44 percent
- Free Standing Retail, up 12.99 percent
- Timber, up 10.09 percent
- Office, up 9.04 percent
- Manufactured Homes, up 7.73 percent
- Infrastructure, up 5.39 percent
- Diversified, up 4.04 percent
Among Mortgage REITs, the Home Financing segment continued to produce strong results with a 24.78 percent total return for the year through Nov. 30. The Commercial Financing segment was up 14.24 percent.