REIT Earnings Rose 24.6% in 2021
March 3, 2022 | Calvin Schnure | Nareit
REIT earnings, as measured by funds from operations (FFO), rose 24.6% in the full year 2021 as the recovery from the early stages of the pandemic gained momentum, according to the Nareit T-Tracker®. On a quarterly basis, FFO overall was down slightly in the fourth quarter, declining 3.0% from the prior quarter.
Performance varied widely across property sectors in the fourth quarter. Industrial REITs continued to post incredible earnings growth, with FFO rising 13.8% from the third quarter, to $1.9 billion. This is 51.2% higher than one year ago, and 64.5% higher than in 2019:Q4, the last full quarter before the pandemic.
Several other sectors had more moderate gains, including retail and lodging/resorts, which are recovering after having been among the sectors most impacted by the shutdowns early in the pandemic.
