Market Analysis & Research

The FTSE Nareit All Equity REITs Index declined 7.0% in September as the 10-year Treasury yield continued to climb, ending the month at 4.6%, while the All Equity REITs dividend yield ended the month at 4.4%.

Infrastructure, data centers, and health care each have more than a 10% share of assets.

During this period of divergent public and private property valuations, the commercial real estate mortgage market has been marked by higher interest rates and stricter underwriting standards.

A recent Nareit market commentary highlighted that the “ostrich effect,” an investor behavior where risky situations are avoided by pretending that they do not exist, may aptly describe the attitudes of many private institutional real estate investment managers and appraisers when it comes to their valuation practices.

Norges Bank Investment Management (NBIM) recently published a discussion note, “Drivers of Listed and Unlisted Real Estate Returns,” which analyzes the drivers of U.S. public and private real estate returns and evaluates real estate exposures in the context of a diversified investment portfolio.

REITs and broad market equities faced challenges in August, as the sharply rising 10-year Treasury yield hit 4.34%, its highest level since 2007, and then declined to 4.09% in the final week of the month.

A common myth tells us that ostriches bury their heads in the sand when faced with danger. While not true, the phrase “burying your head in the sand” has become a popular idiom to describe an individual who ignores the existence of a problem with the hope that it will just go away.

The Morningstar Sustainable Funds Landscape Report shows that the number of sustainable open-end and exchange-traded funds available to U.S. investors rose to nearly 600 in 2022.

Nareit is tracking quarterly investment holdings for the 28 largest actively managed real estate investment funds focusing on REIT investment.

The rapid rise in interest rates since the beginning of 2022 has exposed fault lines in banking, private equity, and commercial real estate business models that were predicated on low debt rates.