Market Analysis & Research

The FTSE EPRA Nareit Developed Extended Index declined 1.4% in March and has risen 3.1% on a year-to-date basis as of March 31.

U.S. REITs raised $12.2 billion from secondary debt and equity offerings in the first quarter of 2025.

During the current lingering public-private real estate valuation dislocation, REIT implied cap rates have reacted to movements in the U.S. 10-year Treasury yield in meaningful ways.

The FTSE Nareit All Equity REITs Index declined 2.4% in March as broader market equities suffered greater losses, with the Russell 1000 declining 5.8% and the Dow Jones U.S. Total Stock Market falling 5.9%.

The lingering public-private real estate valuation divergence has been disruptive, but it continues to offer potential buying opportunities for investors. 

Although the lingering CRE valuation divergence has been disruptive, it has created opportunities for investors and benefited REITs. 

The growing use of target-date funds (TDFs) remains the dominant investment-related trend in the defined contribution and individual retirement account markets, and REITs continued to be a critical component of TDFs in 2024.

The FTSE EPRA Nareit Developed Extended Index rose 2.8% in February and was up 4.6% on a year-to-date basis at month-end.

Space market fundamentals can differ markedly across property types

While today’s property market tends to be characterized by supply–demand imbalances, declining/low occupancy rates, and moderating/low rental growth rates, signs of stabilizing fundamentals have started to percolate.

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

While publicly traded equity REIT performance has recently been exhibiting an inverse relationship with U.S. 10-year Treasury yield movements, this has not always been the case.