CIO - REITs finish week in green as major indices gain

2023-03-04 12:00:00 ET

REITs finished the week in green after three consecutive weeks of decline, as Wall Street's major indices gained on the possibility of a pause to rate hikes and as Treasury yields pulled back from key levels.

The FTSE Nareit All Equity REITs index rose by 1.35%, while the broader Real Estate Select Sector SPDR ETF increased by 1.63% and the S&P 500 index by 1.90%.

REITs are well-positioned for economic and market uncertainty in 2023, considering their strong operational performance and balance sheets, the National Association of Real Estate Investment Trusts said in a recent report.

Over the past month, more than 200 REITs reported their quarterly earnings, and roughly two-thirds beat earnings expectations, Seeking Alpha author Hoya Capital said .

Industrial REITs were upside standouts during the earnings season, and also during the week. The subsector ended the week 3.72% higher.

Self storage sector was the biggest gainer for the week, having finished 4.94% higher.

Office was the worst performing sector during the earnings season, and also during the week. The subsector ended the week 2.63% down on a weekly basis.

Many office and healthcare REITs forecast double-digit FFO declines in 2023, Hoya Capital noted.

FTSE Nareit Mortgage REITs index dropped 1.71% this week, contrary to most other REITs indexes that increased in value.

Here is a look at the subsector performance:

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