Listed REITs outperformed the broader equity markets in May, but are still down overall in the first five months of 2018. The FTSE Nareit All Equity REITs Index advanced 3.6 percent last month, compared with a 1.8 percent rise for the S&P 500 Index. This follows a 0.5 percent gain in April, but REITs are still down 2.8 percent year-to-date.
The lodging/resorts sector was the best-performing category in May, up 11.9 percent. Much of the outperformance was driven by the announcement Blackstone would acquire LaSalle Hotel Properties in a $4.8 billion deal. The merger still needs the approval of LaSalle Hotel’s shareholders, and Pebblebrook Hotel Trust, which also has made an offer for the REIT, says its bid is superior to Blackstone’s offering.
Healthcare and freestanding retail REITs also outperformed in May, rising 7.5 percent and 6.7 percent, respectively. The worst performers were data center and single-family home REITs, falling 1.5 percent and 2.8 percent, respectively.
