REITs fall 5.4% in September

The FTSE Nareit Equity REITs Index recorded its first down month in 2021 — falling 5.4 percent in September to close out the third quarter with 0.23 percent return. Year-to-date, the index is up more than 23.1 percent. The fall by REITs reflects a broader move by equity markets; the S&P 500 Index also declined in September, falling 4.8 percent.

The only property sector to see a gain in September was the lodging/resorts segment, which rose nearly 1.3 percent. While the COVID-19 pandemic was a blow to the hotel industry, it is in the midst of a recovery. In a recent IREI podcast, Kevin Davis, senior managing director in JLL’s hotels and hospitality group, noted the hospitality debt market is strong, there is a fair amount of liquidity in the hotel segment, and properties are functioning mostly efficiently.

On a year-to-date basis, the strongest performances have been recorded by regional mall REITs (up 56.6 percent), shopping center REITs (up 45.5 percent) and ap