REIT Industry Shows Growth in Acquisitions

September 12, 2019 | Alternative Investments

The National Association for Real Estate Investment Trusts (Nareit) has released its report of the performance of the REIT industry in the second quarter of 2019.

The association found that Funds from Operations (FFO) totaled $16.5 billion, a 2.8% increase from the first quarter of 2019 while Net operating income totaled $24.8 billion, 2.4% higher from last quarter. Total dividends paid by equity and mortgage REITs totaled $15.0 billion in the quarter. The top-performing equity REIT property segments on a same-store Net Operating Income basis over the past four quarters were manufactured homes, single-family homes, office, and industrial.

National Association for Real Estate Investment Trusts Survey

After five months of being near neutral REIT acquisitions rose in the quarter with $12.5 billion of new acquisitions. Nareit Vice President of Research Nicole Funari noted that “REITs’ acquisitions are up this quarter, without increasing the industry‘s very favorable leverage position, which is at historic lows.”  Den to total market value in the industry right now is just 32.5%

The amount of interest being paid by US REITS also continues to decline as REITs can find financing on very favorable terms in today’s low rate world.

Occupancy rates for equity REITs remained above the 90% level again this quarter as the economy remains stable compared to past years. Only mall REITs are struggling with lower occupancy rates, and even there for Class A malls, the situation appears to be leveling out.

Equity REITs returned 1.8% in the 2nd quarter while mortgage REITs had a modest negative total return of (-0.2%). Industrial Properties had the highest total return at 9%, and Retail properties had the worst performance at (-6.8%).





Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Venture Capital: Health Data Analytics Platform Evidation Raises $45M
July 2, 2020     News, Venture Capital

Evidation Health’s Achievement platform collects everyday health data for use in innovative research and health platforms. Giving due emphasis to user privacy and controlled, permissioned health data, the platform gathers…
Artificial Intelligence: A UVC Robot Disinfects 4,000 Sq Ft Food Bank in 30 Minutes
July 2, 2020     Artificial Intelligence, News

MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL), Ava Robotics, and the Greater Boston Food Bank (GBFB) collaborated on a robotic solution to the problem of disinfecting a large area…
Alternative Investments: TrueMark Investments Launches A Structured Outcome ETF That Tracks the S&P 500 Index
July 2, 2020     Alternative Investments, News

TrueMark Investments has launched the TrueShares Structured Outcome (July) ETF (NYSEAMERICAN: JULZ) that offers investors exposure to the S&P 500 price index. The ETF is a “structured outcome” product, the…
Digital Assets: Crypto Gathers Pace in India After Top Court Decision
July 2, 2020     Digital Assets, News

The Supreme Court of India recently struck down a circular issued by the Reserve Bank of India that barred banks from serving crypto businesses such as traders, exchanges, or others….