U.S. REITs bounced back dramatically in November, advancing 10.6 percent, according to the FTSE Nareit Equity REITs Index, following several months of declining returns. In the first 11 months of the year, equity REITs were up 3.5 percent, but continue to lag the broader equity markets. The S&P 500 Index was up 20.8 percent through the end of November.
According to a Market Update from Global Property Research: “Optimism returned to the market with a vengeance in November 2023, as cooling inflation readings raised expectations for future Fed rate cuts, also boosting listed real estate securities.”
The best performance in November was once again the infrastructure sector, which primarily includes REITs focused on wireless communications towers. Infrastructure REITs rose 19.9 percent in November, following an increase of 6.1 percent in October, but are down 4.1 percent through the first 11 months of t