U.S. REITs saw small uptick in October, with the FTSE Nareit Equity REITs Index rising nearly 4.9 percent in the month after the index recorded a 12.2 percent decline in September. On a year-to-date basis, however, REITs are deep in the red, down more than 24.6 percent.
Equities across the board have declined this year. Although listed property stocks have underperformed the general stock market in 2022, as measured by the S&P 500 Index, which rose 8.1 percent in October but is down 17.7 percent in the first 10 months of the year, equity REITs have outperformed the more tech-heavy Nasdaq Composite Index, with is down 29.3 percent year-to-date.
The deep declines in listed REIT pricing have meant the sector is deeply discounted compared with private real estate. A recent report from Oxford Economics noted, “The risk of distress has risen, but REITs look well positioned.” The report explained, “REI