- The Great Financial Crisis resulted in long-term, lasting pain for the real estate sector, but "this time was different" for most REITs due to harsh lessons learned from past crises.
- Despite early struggles with rent collection, REITs' strong balance sheets and access-to-capital prevented the type of shareholder dilution that resulted in a "lost decade" for REITs in the GFC's aftermath.
- REITs recorded a sequential improvement across all critical metrics in Q4, powering a historic wave of dividend growth in early 2021. However, several harder-hit property sectors are not yet out-of-the-woods.
- REITs are no longer "cheap," but that may be a good thing. Premium valuations in the public markets should facilitate external growth opportunities and may finally kick-start the IPO pipeline.
- 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.
For further details see:
REITs: This Time Was Different