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- January 1, 2014: Vol. 26, Number 1

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U.S. REITs closing 2013 on a sour note

by Mike Consol

 

Cumulatively speaking, it looks like 2013 will be a year to forget for U.S. REITs.

Equity REIT returns ran into negative territory in November, and during the first 11 months of 2013 they posted a trifling 2.26 percent gain. That compared unfavorably with the S&P 500 Index, which rose 29.12 percent during the same period.

The poor report card comes on the heels of a big 2012 performance, during which all five major REIT property types finished in solidly positive territory, led by the industrial sector, which racked up a 31.3 percent total return on investment, followed by retail at 26.7 percent. Indeed, there has been a string of good years for the REIT business, posting a return of more than 20 percent over the past five years.

For November, on a total return basis, the FTSE NAREIT All REITs Index was down –4.41 percent, and the FTSE NAREIT All Equity REITs Index was down –4.87 percent.

The news has not been bad

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