Slow and Steady: REIT Rally Is Moderate but Sustainable in 2010
If there is good news anywhere in the commercial real estate world these days, it’s in the REIT market. Buoyed by improving capital markets in general and sustained by an influx of funds from investors, REITs have weathered what looks to be the worst of the economic downturn, churning out mostly positive returns along the way.
REITs recorded an 11 percent total gain from January through the end of May, according to the FTSE NAREIT Equity REIT Index. Those returns come on top of a 28 percent increase in total returns in 2009.
The positive performance through mid-year has analysts upbeat. Standard & Poor’s issued a report on REITs June 9, stating, “While we anticipate gradual, yet choppy improvement in the single-family for-sale market, recent market data suggest that operating fundamentals among public REITs have bottomed and that