The Market Commentary blog on reit.com presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. The Nareit economics team offers their commentary on the state of the market, the outlook for commercial real estate and breaking macroeconomic news. The opinions set forth here are solely those of its author(s), and do not necessarily reflect the views of the Nareit or its membership.
Norges Bank Investment Management Uses REITs as Strategic Component in Real Estate Allocation
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.
PGIM Helps Australian Superannuation Fund Improve Diversification Using REITs
An Australian superannuation fund identified critical gaps in both property types and geographies within its commercial real estate portfolio.
REITs Raised $23.3 Billion Through Secondary Offerings and IPOs in 2024: Q3
U.S. REITs raised $23.3 billion from secondary debt and equity offerings in the third quarter of 2024; $15.4 billion came from debt, $5.1 billion was raised in one IPO, and $2.8 billion came from secondary common and preferred equity offerings.
REITs Outperformed Broader Markets in the Third Quarter
The FTSE Nareit All Equity REITs Index rose 3.2% in September, continuing to outperform the broader stock market as the Dow Jones U.S. Total Stock Market and Russell 1000 each rose 2.1%.
Tax Treatment of REIT Common Share Dividends Paid in 2023
Dividend distributions are a vital part of the REIT total return proposition. Since 1995, Nareit has worked with representatives of the Investment Company Institute (ICI) and the Securities Industry and Financial Markets Association (SIFMA) to develop procedures for corporate members that are designed to facilitate the timely reporting of the required dividend distribution information while minimizing reporting discrepancies.
REITs Supported 3.5 Million Jobs in 2023
REITs supported an estimated 3.5 million fulltime equivalent jobs in the U.S. in 2023, producing $278 billion in labor income.
REITs Own 580,000 Properties in the U.S.
At the end of 2023, U.S. public REITs owned an estimated 580,000 properties—up 1% from the previous year—and 15 million acres of timberland across the U.S.
The Long Goodbye to the Divergence in Public and Private Real Estate Valuations
The tenure of the recovery from the current divergence in public and private real estate valuations is now approaching two years.
REITs Continued to Outperform Broader Markets in August
The FTSE Nareit All Equity REITs Index continued to outperform broader markets in August, posting a total return of 5.4% as the Russell 1000 and Dow Jones U.S. Total Stock Market rose 2.4% and 2.1%, respectively.
Actively Managed Real Estate Fund Tracker: 2024Q2
In the second quarter of 2024, active managers increased allocations in the digital sectors and health care.
Advantage Players: REITs Continue to Benefit from Disciplined Balance Sheets
In gambling, “advantage players” use legal techniques and expert knowledge to gain a winning edge over casinos.
All In: REIT Sector Innovation and Gaming
When it comes to property sectors, US public equity REITs are "all in" on innovation. By adapting to the changing economic and commercial real estate landscapes, REITs have moved beyond the status quo with ongoing introductions of new property sectors.