The COVID-19 pandemic is taking its toll on real estate securities, with extreme volatility walloping returns in the traded market. The MSCI US REIT Index Gross Total Return (RMS G), a measure of performance of listed REITs, fell 27 percent during the first quarter of 2020, sinking the 36-month total return of the broader REIT market to an 8.8 percent loss. Alternative investments known as net asset value (NAV) REITs posted less dramatic declines for the most recent quarter, suffering a 4.5 percent loss as measured by the Stanger NAV REIT Total Return Index, but posted a cumulative total return of 17.4 percent for the most recent 36-month period. Although we expect substantial recoveries in the public markets in the coming months as the economic fallout of the COVID-19 pandemic subsides, further near-term impact on both public and private market real estate values can be expected.
“This performance only serves to highlight the benefits of a nonlisted REIT vehicle, providing
