NTST - REITs: A Tale Of 2 Crises

• The Great Financial Crisis of the prior decade resulted in long-term lingering pain for the commercial real estate sector. For REITs, "this time has been different," both for better and worse.
• The pandemic has resulted in a sharp plunge in property-level metrics that dwarfs that of the prior crisis as landlords struggled to collect rents. Company-level metrics have been more resilient.
• REITs plunged 70% during the GFC and took eight years to return to prior highs. REITs dipped 45% amid the coronavirus crisis but are already back within 10% of all-time-highs.
• Some aspects of this crisis were more acute than the Financial Crisis - including the wave of dividend cuts - but strong balance sheets and access-to-capital prevented the type of shareholder dilution that resulted in a "lost decade" for REITs.
• In our quarterly "State of the REIT Sector" report, we analyze the recently-released NAREIT T-Tracker data to review high-level REIT fundamentals over the past quarter through a series of charts.

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