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REITs historically perform well during and after recessions

January 22, 2023

REITs historically perform well during and after recessions

January 22, 2023

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.

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