REITs historically perform well during and after recessions
January 18, 2023 | Larry Rothman | Pensions & Investments
The FTSE Nareit All Equity index, consisting of REITs that exclude mortgages, generated a 15.9% annualized return during recessions and 22.7% in the year following the end of a downturn, according to the National Association of Real Estate Investment Trusts. In contrast, private real estate funds, measured by the NCREIF Fund index–Open End Diversified Core Equity, had a 0.6% return during an economic downturn and 5.2% in the four quarters after that period ends.
In the year before recessions, private real estate funds had a 13.1% return vs. 5.7% for REITs.
