REIT Data

In November, the FTSE Nareit All Equity REITs Index gained back most of the ground lost in the previous month, posting a total return of 3.5%.

A recent Nareit commentary examined occupancy rate momentum across the four traditional property types and found that property fundamentals have generally been soft or softening across these sectors.

The recent Cornell University/Hodes Weill’s 2024 Allocations Monitor report found that in 2023, institutions were more active allocating capital to REITs, as investors looked to capitalize on discrepancies between public and private market valuations.

Nareit tracks quarterly investment holdings for the 26 largest actively managed real estate investment funds focusing on REIT investment for insights into expert investor sentiment.

With softening fundamentals, a lingering public-private valuation problem, and muted property transaction activity, the U.S. commercial real estate market appears to be stuck in a period of stagnation.

In today’s economy, the pace of inflation has moderated, economic growth has remained healthy, the unemployment rate has held steady, the prospects of recession have lessened, and expectations for continued monetary policy easing have proliferated.

The FTSE Nareit All Equity REITs Index fell 3.6% in October, underperforming the broader stock market as the Dow Jones U.S. Total Stock Market and Russell 1000 declined 0.7%.

Norges Bank Investment Management’s real estate investment strategy combines 50% REITs and 50% private real estate investments to enhance diversification, access new and emerging property sectors, and optimize cost management.