Search
 

REIT Returns Falter As Q3 Ends

NEW YORK CITY—Barclays and Trepp cite recent underperformance by the REIT sector generally, leading to investor questions about whether real estate trusts and their properties are overvalued.

Office building in Midtown Manhattan Barclays US offices in Midtown Manhattan. (Photo: Rockefeller Group)

NEW YORK CITY—REITs’ debut as a standalone sector within the Global Industry Classification Standard coincided with a stretch of underperformance in the sector, according to reports from Barclays Capital and Trepp LLC. A key factor, according to a Barclays note to investors, was the “more hawkish” tone recently from the Federal Reserve on interest rates, although Trepp notes that the Fed’s decision not to raise rates at its September meeting drew a positive response from the market.

However, writes Susan Persin at Trepp, “more Fed officials are disagreeing with the decision not to raise rates. As a result, a December rate hike, falling after the November elections, seems more likely.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Paul Bubny

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

More from this author

Recommended Stories

CRE Fundraising Drops to Five-Year Low

CRE Fundraising Drops to Five-Year Low

Richard Berger |

With interest rates expected to stay elevated, real estate investors are likely to remain cautious in their fundraising.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.