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Equity REITs Performed Well In Q2 In Anticipation Of The Split From Financials On The S&P Index


Equity REITs had a strong second quarter, according to data from the National Association of Real Estate Trusts. REITs posted robust earnings that increased by 7.1%—a 10.1% gain compared to a year ago.

With strong earnings come strong dividend payments. Investor distributions listed by Equity and Mortgage REITs rose 13.6% in Q2 to $12B compared to the previous year. Occupancy rates in the property sector broke records, jumping 60 basis points to 93.7% in Q2, and net absorption continued to outpace supply, NAREIT reports.

The strong results come in anticipation of REITs' reclassification on the GICS and their separation from the financials sector in the S&P Index. The move will take effect in September.