Publicly-traded REITs Weather a Repricing Period
June 15, 2022 | David Bodamer | WealthManagement.com
REIT share prices have fallen as the broader stock market prices in interest rate hikes and the potential of a recession. But at the same time, REIT executives remain bullish about near-term real estate fundamentals in their portfolios and confident in how their balance sheets are positioned for any coming turbulence.
The current REIT repricing period began with Amazon’s earnings announcement in May, when the firm also announced its plans to return about 30 million sq. ft. of industrial space to the market. Since then, total returns for the FTSE Nareit All Equity REITs index are down a little more than 15.5 percent, including down more than 10 percent in June alone.
It was with that backdrop that more than 2,500 attendees and management teams from more than 170 REITs attended Nareit’s annual REITWeek event in New York City. There, the tone was decidedly more upbeat.
WMRE sat down with Nareit Executive Vice President and Economist John Worth to discuss highlights from REITweek and the current state of the market.
