REITs bounced back in March after a drop in February, but were down overall in the first quarter. REITs had a total return of 3.7 percent in March, according to the FTSE Nareit All Equity REITs Index, but the index was down nearly 6.7 percent in the first three months of the year.
It seems equity markets have rediscovered volatility in 2018. The S&P 500 Index fell 2.7 percent in March, and was down 1.2 percent in the first quarter.
In March, the strongest performing property sector was apartment REITs, which advanced 7.4 percent. Investors may have been responding to positive news from the sector, which saw rents grow in March — up 2.5 percent on a year-over-year basis, according to Yardi Matrix. Concerns persist, however, that apartment rent growth is decelerating; multifamily rents rose an average of 0.4 percent in the first quarter, reports Yardi.
Data center REITs also performed well in March, rising 6.4 percent, and healthcare REITs returned 5.9 percent. Regional mall REITs were the only property category to see a decline in the past month, falling nearly 0.9 percent in March.
