REITs fall in November, underperforming broader market

U.S. real estate stocks fell in November, underperforming the broader market, with a drop of 1.5 percent, according to the FTSE Nareit All Equity REITs Index. By comparison, the S&P 500 Index recorded a 3.4 percent gain in November. Over the first 11 months of 2019, U.S. REITs rose 27.9 percent, according to the index.

Hotel property fundamentals showed strength coming out of the third quarter, and lodging/resort REITs had one of the best performances in November, rising 2.6 percent. Year-to-date, the sector had a total return of 9.9 percent. The hotel sector remains healthy, but growth is forecast to slow over the next couple years, according to CBRE Research.

Among the biggest drops in November was a 6.1 percent fall by healthcare REITs and a 4.6 percent decline among self-storage REITs. The self-stora