REITs Drop, But Continue To Outpace Broader Market
NAREIT SVP Brad Case (pictured) says that while REIT returns were down in February, the sector’s yield is beating out the broader market for the long term.
NAREIT’s REIT Index fell 30 bps in February, while the S&P 500 dropped 10 bps. For the year, however, the REIT Index has dropped only 10 bps, while the S&P 500 is down 210 bps, NAREIT reports.
“This is the kind of month where you don’t feel great, but it’s not a really bad month,” Brad says.
When it comes to 2016 REIT trends, Brad says there’s a growing awareness that property is valued higher in the private market than in the REIT sector.
He notes that while REIT markets can respond quickly to new info, private property is measured only by infrequent appraisals or transactions, meaning prices are a bit more sticky. [NAREIT]
