REITs Are Staging a Slow-Mo Comeback
Offices are still the worst off, but there is even some good news in bedraggled malls.
May 24, 2021 | Larry Light
Real estate investment trusts (REITs) are recovering, oh so gradually, but they at least are on the mend overall.
The category saw earnings growth slow to 2% in the year’s first quarter, but that seems to be on track with a recovery narrative. That comes after two consecutive quarters of double-digit growth in the latter half of last year.
For REITs as a whole, interest rate costs dipped and cash on hand rose, all good signs, according to a study from Nareit, the trade group for REITs. For the different segments of the market, the returns varied a lot.
“Different parts of the economy are reopening at different speeds, and REIT performance by property sector reflects this variation,” said Calvin Schnure, Nareit senior economist. “The recovery is broadening with the vaccine rollout, however, and prospects for improvement have gone from ‘if’ to ‘when.’”
