REITs Fall in September

REITs lost ground in September, as a combination of concerns about interest rate movements, property valuations and new supply appeared to weigh on investors.

The total return of the FTSE/NAREIT All REIT Index dropped 1.4 percent in September, while the S&P 500 index added 0.02 percent.

For the year through Sept. 30, the total return of the FTSE/NAREIT All REIT Index was 12.6 percent, while the S&P 500 posted a total return of 7.8 percent. The yield on the 10-year Treasury note dropped 0.7 percent in the first nine months of 2016.

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REITs Gain Ground in September

REITs gained ground in September and outpaced the broader market, as fundamentals in the sector continued to hold firm, market watchers said.

The total returns of the FTSE/NAREIT All REIT Index rose 1.9 percent in September, while the S&P 500 Index lost 2.5 percent. The yield on the 10-year Treasury note was 0.1 percent lower for the month. Through the end of September, REIT total returns were down 4.5 percent, while the S&P 500 Index was down 5.3 percent.

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Quick Study: REITs Outpace Broader Market in September

In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, discussed the recent outperformance of the REIT sector compared with the broader stock market.

The total returns of the FTSE/NAREIT All REIT Index rose 1.9 percent in September, while the S&P 500 Index lost 2.5 percent. Year-to-date, REIT returns are down 4.5 percent, while the S&P 500 Index is down 5.3 percent.

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Fundamentally Speaking: September Jobs Report Shows Economy Gathering Momentum

In the latest edition of Fundamentally Speaking, Calvin Schnure, NAREIT’s vice president for research and industry information, reviewed the September jobs report and what it says about broader economic trends.

Non-farm payrolls rose by 248,000 in September, according to the Bureau of Labor Statistics. “That’s a solid number just by itself,” Schnure said, adding that prior months were also revised upward. “The weakness in late summer was not quite as pronounced as we thought before.”

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Quick Study: REITs Slip in September Amid Broad Market Downturn

In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, offered an analysis of REIT market developments in September.

The total return on the FTSE NAREIT All REITs Index decreased 5.6 percent, but Case stressed that September was “a difficult month for all investors…there was no place to hide last month in investing.”

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REITs Lose Ground in September; Continue to Lead Broader Market

REITs lost ground in September against the backdrop of a weakened broader market. The total return on the FTSE NAREIT All REITs Index dropped 5.6 percent for the month, the S&P 500 Index fell 1.4 percent.

As of the end of September, however, the FTSE NAREIT All REITs Index had gained 13.1 percent for the year, compared with an 8.3 percent gain for the S&P 500.

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