REITs rise more than 5% in June

U.S. equity REITs put out a strong performance in June, as the Federal Reserve took a breather. The Fed held the target federal funds rate steady at its most recent meeting (though some expect increases could continue in July), and the REIT market responded positively. The FTSE Nareit Equity REITs Index rose 5.15 percent in June and is up 5.37 percent in the first half of the year.

The strongest performances in June were seen among some of the property types that have been most troubled in the post-pandemic era. Regional malls and shopping centers reported performances of 11.70 percent and 11.04 percent, respectively, while office REITs advanced 10.38 percent.

Todd Kellenberger, real estate client portfolio manager at Principal Asset Management, recently noted, “The office sector, and its struggles, are receiving large and warranted attention with the lasting impact from work from home and sluggish return-to-office trends. While office grabs the headlines and much of