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REITs have outperformed the broader markets this week, and the sector is said to be breaking an 18-month downtrend.
FTSE Nareit All Equity REITs posted positive returns of 0.29% from last week, against the S&P 500 which was down 1.16% in the past week. value.
The Real Estate Investment Traded Funds Index decreased by 2.17% on a weekly basis, while the SPDR Real Estate Investment Traded Funds Index rose by 0.27%.
Some Fed officials at the FOMC rate-setting meeting on June 13-14 favored raising the central bank’s policy rate by 25 basis points. Mixed economic data in the labor market also weighed on the broader stock market returns.
REITs have been the worst performers over the past 18 months, but from a trend perspective, things are getting better in this sector, Jonathan Krinsky of BTIG Tell CNBC News.
Notably, REITs underperformed other indices in the second quarter, a report from S&P Global Market Intelligence reports show up.
The report indicated that the Dow Jones real estate index ended the quarter up 1.2%, while the Standard & Poor’s 500 recorded positive returns of 8.7%.
However, REITs can be used as insulation and to generate income during a potential recession, said real estate expert Brad Thomas.
Here’s a look at the performance of the REIT’s subsectors:
More about REITs:
- Ritz lead quarter end rally
- Buy REIT – sell real estate
- REITs: Takeaways from NAREIT REITWeek 2023