First Trust S&P REIT Index Fund

FRI tracks a market-cap-weighted index of US companies involved in the ownership and operation of real estate

FRI tracks a market-cap-weighted index of US companies involved in the ownership and operation of real estate.

American Tower

AST SpaceMobile

Altice USA

JPMorgan BetaBuilders MSCI US REIT ETF

Crown Castle International

Charter Communications

Comcast

DigitalBridge Group

DISH Network

Direxion Daily Real Estate Bull 3x Shares

Direxion Daily Real Estate Bear 3x Shares

Fidelity MSCI Real Estate ETF

iShares Cohen & Steers REIT ETF

iShares U.S. Real Estate ETF

Nuveen Real Estate Income Fund

Invesco KBW Premium Yield Equity REIT ETF

Neuberger Berman Real Estate Securities Income Fund Inc

US Diversified Real Estate ETF

Invesco Active US Real Estate

ProShares Short Real Estate

Cohen And Steers Total Return Realty Fund

Cohen & Steers Reit And Preferred Income Fund Inc

Cohen & Steers Quality Income Realty Fund

SPDR Dow Jones REIT ETF

Cell Tower REITs have been one of the weakest-performing property sectors since early 2022, an uncharacteristic stretch of poor performance following a half-decade of industry-leading returns. Concern over the long-term competitive positioning of land-based cellular networks in the ever-evolving telecommunications industry has been amplified by the accelerated rollout of satellite-based networks offering some mobile connectivity.

Cell Tower REITs: 5G's Killer App

Agree Realty

Broadstone Net Lease

Four Corners Property Trust

Global Net Lease

Gladstone Commercial

Getty Realty

Realty Income Corp

One Liberty Properties

Necessity Retail REIT

Net Lease REITs - historically one of the most "rate-sensitive" property sectors - have surprisingly been the best-performing major property sector since early 2021 despite the significant rise in interest rates. Private market values have remained far "stickier" than comparable public market assets. Increases in these REITs' cost of capital has far-outpaced cap rate increases, resulting in record-low investment spreads.

Net Lease REITs: Avoiding The Winner's Curse

Ashford Hospitality Trust

Alexandria Real Estate Equities

Avantis Real Estate ETF

Boston Properties

Cousins Properties

Diversified Healthcare Trust

Franklin Street Properties Corp.

Goldman Sachs Future Real Estate And Infrastructure Equity ETF

Home Appreciation US REIT ETF

Hudson Pacific Properties

Life Storage

ETRACS Monthly Pay 1.5X Leveraged Mortgage REIT ETN

InfraCap REIT Preferred ETF

Paramount Group

iShares Global REIT ETF

ALPS Active REIT ETF

ETFB Green SRI REITs ETF

Global X SuperDividend REIT ETF

The REIT sector gave up most of January's big gains in February with a -6.18% total return. Small cap (-7.42%) and mid cap (-6.05%) REITs fell the furthest in February, with micro caps (-5.15%) and large caps (-4.74%) seeing smaller declines.

The State Of REITs: March 2023 Edition

Blackstone Group

iShares CMBS ETF

Indus Realty Trust Inc

iShares MBS ETF

Public Storage

Schwab U.S. REIT ETF

Seven Hills Realty Trust

Amid intensifying concerns over the potential fallout from several major tech-focused bank failures, this report examines high-level REIT fundamentals to chart the likely path forward for the real estate industry. Real estate equities have been slammed particularly hard as investors draw parallels to the early stages of the 2008 financial crisis when locked-up credit markets created a cascade of distress.

This Time Is Different

AlerisLife

Community Healthcare Trust

CareTrust REIT

Global Medical REIT

Healthcare Realty Trust Inc

Medical Properties Trust

National Health Investors

Omega Healthcare Investors

For Healthcare REITs - the physical epicenter of the pandemic - the road to recovery has remained inconsistent across its distinct sub-sectors, with "private-pay" segments now showing notable improvement while "public-pay" segments relapse. Public-pay segments - Hospital and Skilled-Nursing - have seen a re-intensification of tenant operator issues amid pressure from soaring labor costs and waning government fiscal support, triggering some missed rents and lease renegotiations.

Healthcare REITs: Life After The Pandemic

Douglas Emmett

Digital Realty Trust

Equinix

Farmland Partners

Highwoods Properties

Innovative Industrial Properties

Gladstone Land

Macerich

After covering the Winners of REIT Earnings Season earlier this week, Part 2 of our Earnings Recap focuses on the worst-performing property sectors and common threads shared by these laggards. While there were upside standouts and impressive reports within these lagging property sectors, the losers of REIT earnings season included: Office, Technology, Net Lease, Regional Malls, Healthcare, and Specialty REITs.

Losers Of REIT Earnings Season

Apartment Income REIT Corp

American Homes 4 Rent

CubeSmart

Equity LifeStyle Properties

Extra Space Storage

First Industrial Realty Trust

Gaming and Leisure Properties

Invitation Homes

Kite Realty Group

Lamar Advertising

NexPoint Residential Trust

OUTFRONT Media

Nearly 200 U.S. REITs have reported fourth-quarter earnings results over the past month, providing critical information on the state of the real estate industry in a period defined by post-pandemic uncertainty. Rising rate concerns overshadowed a surprisingly strong slate of reports across most property sectors. Roughly two-thirds of REITs beat earnings expectations, the third-best among the 11 industry groups tracked by FactSet.

Winners Of REIT Earnings Season

BrightSpire Capital

Centerspace REIT

DiamondRock Hospitality

Essex Property Trust

Franklin BSP Realty Trust Inc

MFA Financial

U.S. equity markets posted their worst week of the year as benchmark interest rates jumped to three-month highs on data showing a surprising reacceleration in inflation and economic activity in January. Declining for a third straight week - a skid that follows a stretch of four-of-five weekly gains to start the year - the S&P 500 dipped 2.7% while the Nasdaq declined over 3%.

Inflation Remains A Problem

Apartment Investment and Management

AvalonBay Communities

Alpine Global Premier Properties Fund

Cambria Global Real Estate ETF

BRT Apartments

Clipper Realty

Camden Property

Elme Communities

Invesco S&P 500 Equal Weight Real Estate ETF

FlexShares Global Quality Real Estate Index Fund

DBX ETF Trust - Xtrackers International Real Estate ETF

Hoya Capital Housing ETF

iShares International Developed Real Estate ETF

CBRE Global Real Estate Income Fund

Apartment REITs were the second-worst-performing property sector in 2022 - barely outperforming the troubled office sector - despite delivering a record year of operating performance highlighted by 20% FFO growth. Following two years of historic rent growth, there is little doubt that growth will moderate over the coming quarters. Market consensus sees a "hard landing" with rising vacancies and declining rents.

Apartment REITs: Tracking For Soft Landing

Acadia Realty Trust

Bed Bath & Beyond

InnSuites Hospitality Trust

Nuveen Short-Term REIT ETF

New York City REIT Inc

Sotherly Hotels

iShares Core U.S. REIT ETF

Vanguard Real Estate ETF

Global X Data Center REITs & Digital Infrastructure ETF

Real Estate Select Sector SPDR Fund

The REIT sector sharply rebounded from a tough 2022 with an +11.77% total return in January 2023. Micro cap REITs (+16.16%) saw disproportionately strong gains in January, followed by double-digit returns for small caps (+11.79%), mid caps (+11.50%) and large caps (+10.07%).

The State Of REITs: February 2023 Edition

Arbor Realty Trust

Ares Commercial Real Estate

ARMOUR Residential REIT

Brixmor Property Group

CBL & Associates Properties

Chimera Investment

Americold Realty

Essential Properties Realty Trust Inc

Hannon Armstrong Sustainable Infrastructure Capital

Host Hotels & Resorts

Hersha Hospitality Trust Class A

Industrial Logistics Properties

U.S. equity markets were mixed on a choppy week as investors readjusted expectations for inflation and interest rates following data indicating an uptick in economic activity and persisting price pressures. Posting its first back-to-back weekly declines of the year, the S&P 500 slipped 0.2% this week, but other major benchmarks fared better. The Mid-Cap 400 and Small-Cap 600 both gained.

Risks Of 'No Landing'

ProShares UltraShort Real Estate

Pacer Funds Trust-Pacer Benchmark Data & Infrastructure Real Estate Sector ETF

ProShares Ultra Real Estate

Virtus Real Asset Income ETF

Certain businesses are better than others at a strategic level. A good underlying strategy is essential to long-term profitability.

Determining The Viability Of A REIT's Business Model

AGNC Investment

Apollo Commercial Real Estate Finance

Brandywine Realty

Blackstone Mortgage Trust

EastGroup Properties

We're approaching the halfway point of another consequential real estate earnings season with roughly 40 equity REITs and 15 mortgage REITs representing 50% of the total market capitalization reporting results. Results thus far have modestly exceeded expectations. Of the 36 REITs that provide guidance, 20 (56%) reported 2022 Funds From Operations ("FFO") above their prior guidance while 3 (8%) missed.

REIT Earnings Halftime Report

American Assets

Armada Hoffler Properties

Brookfield Asset Management

City Office REIT

Equity Commonwealth

Kilroy Realty

Orion Office REIT

Office REITs have been far-and-away the worst-performing property sector since the start of the pandemic, as depressed utilization rates and recession concerns have curbed office space demand. Work-From-Home-Forever? Occupiers due for renewal have been somewhat-reluctant to cut office space, with leasing volumes still at 75% of pre-pandemic levels, but fundamentals softened more definitively in late 2022.

Office REITs: Pain Is Priced In

Dynex Capital

Ellington Financial

Summit Hotel Properties

U.S. equity markets extended their rebound this week after the Federal Reserve slowed its pace of interest rate hikes while strong employment data alongside cooling wage pressures supported "soft landing" prospects. Gaining for the fourth week in the past five, the S&P 500 advanced 1.6% while the tech-heavy Nasdaq 100 rallied 3.3% - its fourth-straight week of gains. Small caps soared 5%.

Fed Blinks, Finally

Prologis

iShares Mortgage Real Estate ETF

Real estate earnings season kicks into gear this week, and over the next month, we'll hear results from 175 equity REITs, 40 mortgage REITs, and dozens of housing industry companies. REITs enter earnings season with some momentum amid the recent moderation in interest rates and hopes of a 'softish' economic landing following a punishing year of stock price performance.

REIT Earnings Preview: The New Normal

D.R. Horton

Mid-America Apartment Communities

U.S. equity markets resumed their rebound this past week as investors parsed a busy slate of corporate earnings results and economic data ahead of the Federal Reserve's rate hike decision. Gaining for the third week in the past four, the S&P 500 advanced 2.5% on the week while the tech-heavy Nasdaq rallied nearly 5% - its fourth-straight week of gains.

A Softish Landing

iShares U.S. Home Construction ETF

VanEck Mortgage REIT Income ETF

Direxion Daily Homebuilders & Supplies Bull 3X Shares

National Storage Affiliates Trust

Despite delivering the strongest earnings growth of any property sector in 2022, Self-Storage REITs have stumbled of late amid a post-pandemic demand normalization and pressure from elevated supply growth. Storage demand is driven largely by housing activity – specifically home sales and rental market turnover. Rental market turnover finished 2022 near historic-lows while home sales also dipped to decade-lows.

Storage REITs: Downsized Demand

Airbnb

Apple Hospitality REIT

Braemar Hotels & Resorts Inc

Booking Hlds

CBRE Group

Carnival

Choice Hotels Int.

Despite lingering recession concerns and recent travel disruptions, Hotel REITs have been among the better-performing sectors over the past year, buoyed by steady post-pandemic operating improvement fueling long-awaited dividend resumptions. Several years of pent-up leisure demand helped to offset a sluggish business and group travel recovery. Hotel revenues eclipsed record highs in 2022, but with wide dispersion between markets and segments.

Hotel REITs: Dividends Are Back

News for First Trust S&P REIT Index Fund ETF (FRI)