Market returns for the beginning of 2022 were down with the S&P 500 down 12.9% year-to-date as of April and the FTSE Nareit All Equity REITs Index down 8.7%. Emerging global market returns were flat while developed market returns were negative. Property sectors with positive returns in the first quarter include lodging/resorts (up 6.9%), health care (up 5.4%), and office (up 2.8%). In contrast to their stock performance, REIT earnings showed strong growth in the first quarter with total REIT FFO up 7.2% from the prior quarter and up 30.9% over the past four quarters. The sectors with the strongest FFO growth from 2021:Q1 to 2022:Q1 were infrastructure (up 47.3%), self storage (up 32.0%), and retail (up 31.0%). REIT balance sheets continued to remain strong and REITs increased their weighted average term to maturity on debt to 87.4 months. While GDP declined 1.4% in the first quarter, the labor market remained strong with the unemployment rate declining to 3.6% from 3.9% in the first quarter and the addition of 1.6 million jobs. Download the 2022 Q1 data.
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1: FactSet, FTSE Nareit US, FTSE EPRA/Nareit Global
2: Nareit T-Tracker®, except where noted. Operational Performance is dollar weighted from the FTSE Nareit All Equity REITs index.
3: Gross acquisitions less dispositions over the prior 4 quarters as a portion of undepreciated book value of total property holdings, reported in basis points
4: Green Street Advisors All REIT Premium to NAV 5Source: Bureau of Economic Analysis GDP report and Bureau of Labor Statistics Employment and CPI reports