REITs Declined Amid Rates Concerns
June 21, 2021 | Calvin Schnure | Nareit
REIT share prices declined last week, with a total return of negative 3.1% on the FTSE Nareit All Equity REITs Index, as financial markets reacted to the Federal Reserve press release and “dots plot” that indicated most policymakers anticipate modest increases in interest rates in 2023. Broader markets also declined, with the Russell 1000 posting a return of negative 1.8%.
Returns by property sector showed declines nearly across the board. Retail, timber, and office REITs registered declines of 5% or more, while self storage REITs edged slightly higher.
mREITs also fell last week, with a total return of negative 3.4% for home financing mREITs and negative 4.1% for commercial financing mREITs.
