Equity, Mortgage REITs on Divergent Paths in November

In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, noted that Equity REITs and Mortgage REITs have been on divergent paths in recent months.

The total returns of the FTSE NAREIT All REITs Index dropped 2.0 percent in November, while the S&P 500 Index gained 3.7 percent. Total returns of the FTSE NAREIT All Equity REITs Index fell 2.4 percent in November, while total returns of the FTSE NAREIT Mortgage REITs Index gained 1.7 percent.

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REITs Drop in November Amid Spike in Treasury Yields

REIT returns fell in November, as gains in long-term interest rates continued to put downward pressure on the sector, market watchers said.

The total returns of the FTSE/NAREIT All REIT Index dropped 2.0 percent in November, while the S&P 500 index gained 3.7 percent. Total returns of the FTSE/NAREIT All Equity Index fell 2.4 percent in November, while total returns of the FTSE NAREIT Mortgage REITs Index gained 1.7 percent.

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REITs Lose Ground in November

REITs lost ground in November, as uncertainty over the timing of interest rate changes and concerns about economic data weighed on the sector.

The total returns of the FTSE/NAREIT All REIT Index fell 0.3 percent in November, while the S&P 500 Index gained 0.3 percent. The yield on the 10-year Treasury note was up 0.1 percent for the month.

Through the end of November, REIT total returns for 2015 were up 1.1 percent, while the S&P 500 Index was up 3.0 percent.

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REITs’ Modest Gains in November in Line With Broader Market

REITs posted modest gains during November that were in line with the broader market, although year-to-date the sector continues to outperform by a solid margin.

The total return of the FTSE NAREIT All REITs Index was 2.3 percent in November. The S&P 500 Index rose 2.7 percent in November.

As of the end of November, the FTSE NAREIT All REITs Index had gained 25.8 percent in 2014, while the S&P 500 Index was up 14 percent.

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Quick Study: REITs Keep Pace With Broader Market in November

In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, reviewed market gains in November and longer-term trends in the REIT sector.

The total returns on the FTSE NAREIT All REITs Index were 2.3 percent for November. While returns on the S&P 500 Index rose 2.7 percent last month, Case noted that REITs outperformed small and mid-sized companies.

For the year through Nov. 28, the FTSE NAREIT All REITs Index was up 25.8 percent, compared with a 14 percent gain for the S&P 500 Index.

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