Equity REITs had a strong second quarter, and NAREIT analyst Brad Case says REIT returns remain strong in the bullish real estate market as we’ve reached the mid-peak levels of the cycle.

“The real estate market cycle is about 18 years long and we're only nine years or so into this one,” Brad (pictured) tells Bisnow.

REITs posted robust earnings in Q2 and average Funds From Operations (FFO) 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% more than a year ago to $12B.

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 the wake 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.