REITs Outpace Broader Market in January

February 3, 2016

2/2/2016 | By Sarah Borchersen-Keto

REITs lost ground in January as global macroeconomic concerns exerted downward pressure on the sector, but they still outperformed the broader equity market.

The total returns of the FTSE/NAREIT All REIT Index fell 3.5 percent in January, while the S&P 500 Index lost 5.0 percent.

“Even though REITs were clearly impacted by everything that was going on in the broader market, they outperformed on a relative basis,” said Jeff Langbaum, senior REIT analyst at Bloomberg Intelligence.

Stephen Manaker, senior REIT analyst at Oppenheimer, said he expects REITs to continue to outperform the broader market because real estate is “relatively attractive in a land with very little inflation.”

Ki Bin Kim, analyst at Sun Trust Robinson Humphrey, Inc., said his firm is taking a cautious stance on the overall REIT sector, “but REITs are in a decent position compared to the broader market.”

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Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
July 7, 2015

Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.