REITs continue 2018 decline with brutal February

Mar. 09, 2018 4:06 PM ETWPS, REM, RWR, VNQ, IYR, ICF, NRO, RFI, IGR, JRS, RWX, SRS, URE, REZ, AWP, IFGL, RQI, RWO, RNP, DRN, DRV, KBWY, SCHH, VNQI, MORT, MORL, JRI, REET, DRA, FREL, SRET, XLREBy: Omer I., SA News Editor38 Comments
  • via Karina Estrella at Trepp
  • The FTSE Nareit All REITs Index tumbled 7.3% in February, underperforming the S&P 500 by 360 basis points.
  • The worst-performing REIT sector was data centers, down 13.1%, followed by lodging, off 12%, and healthcare lower by 10.4%.
  • Self storage was a winner last month, dropping just 0.8%, followed by manufactured homes, down 2%.
  • Chilton Capital Management says disappointing REIT performance was driven by negative fund flows, uncertainty surrounding rising interest rates, and overconcern about a maturing real estate cycle.
  • Given all the pessimism there were some green shoots, with real estate demand growing, and apartment & industrial occupancy rising to 93.8%. Additionally balance sheets are very healthy and REIT debt levels are low.
  • ETFs: VNQ, MORL, IYR, REM, AWP, RQI, MORT, VNQI, SCHH, IGR, RNP, RFI, KBWY, DRN, WPS, NRO, REZ, RWX, URE, ICF, XLRE, JRS, RWR, JRI, REET, SRS, RWO, SRET, FREL, DRA, IFGL, DRV

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