REITs Lose Ground In First Half on Interest Rate Concerns

REIT returns lost ground in the first half of 2015, in part over expectations of the potential market impact of rising interest rates.

For the year to July 6, total returns from the FTSE/NAREIT All REIT Index declined 3.2 percent. The S&P 500 was up 1.5 percent during the same period. The yield on the 10-year Treasury note gained 0.1 percent during that time.

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BMO Analyst Says Diminishing Interest Rate Concerns Boosted REITs in 2014

Paul Adornato, managing director with BMO Capital Markets, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.

According to Adornato, the big story for REITs during 2014 was their “tremendous performance” compared with the overall market. Although concerns about interest rate increases did impact REITs earlier in the year, REITs “sailed away” once investors determined that those increases were not imminent, he said.

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Real Estate: A Local Business with Global Concerns

Industry leaders,MaryAnne Gilmartin, Tricia Atallah, Lisa Beeson, Aine Brazil, Veronica Hackett, Jennifer Stewart, and Mary Ann Tighe, discuss how major factors such as shifting demographics, technology, environmentally responsible design and politics will shape New York Citys built environment over the coming decade.
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