REITs Stumble Out of the Gate in January Amid Broader Market Sell-Off
February 7, 2022 | David Bodamer | WealthManagement.com
The major rebound that REITs experienced in 2021 was always going to be a tough act to follow, but a fall of nearly 8 percent for the month was not what anyone had in mind.
The FTSE Nareit All Equity REITs index rose 41.3 percent in 2021—the best single-year gain since 1976. Expectations for 2022 were that strong fundamentals and REITs on solid operating footing would enjoy more gains. And that outlook has changed. But amid a broader stock market selloff in January the All Equity index fell 7.93 percent for the month with virtually no property type exempted from the drop. (The lone exception were health care REITs that eked out a 0.19 percent gain for the month).
A few subsectors even posted double-digit percentage drops including infrastructure (down 13.89 percent), data centers (down 13.58 percent) and manufactured homes (10.37 percent).
WMRE sat down with Nareit Executive Vice President and Economist John Worth to discuss the January returns.
