Mortgage REITs Post Many Happy Returns

“Mortgage REITs have rewarded their investors with strong total returns,” says Wechsler.

WASHINGTON, DC—Mortgage REITs have been the stars of the listed REIT sector thus far in 2017, according to NAREIT data. The FTSE NAREIT Mortgage REITs Index delivered a 20.04% total return for the first nine months of the year, helped by a 3.5% in the third quarter. That compares to the performance of the FTSE NAREIT All Equity REITs Index, which delivered a 6.04% for the period and a 1.11% return for Q3. It also beats the S&P 500, which delivered a total return of 14.24% for the year’s first three quarters and 4.48% fr the most recent three-month period.

“Mortgage REITs have rewarded their investors with strong total returns,” says NAREIT president and CEO Steven A. Wechsler. “While equity REITs have underperformed the broader market so far this year, REIT operating fundamentals remain solid, and the industry is continuing to provide the stable income and portfolio diversification that many investors are seeking.” The FTSE NAREIT All REITs Index, which combines the results of equity and mortgage REITs, had a total return of 6.74% in the first nine months of the year and 1.24% for Q3.