WASHINGTON, DC—US REITs continued their upward trajectory in November, NAREIT has reported. Total returns for US REITs rose 2.3% for the month, for a 26% year-to-date increase. That is nearly double the total return of the S&P 500 for the year.
"REITs have a long history of outperforming the broader market so this is not surprising," NAREIT's Brad Case says in a video discussing the month's performance, which is posted to NAREIT's website.
The FTSE NAREIT All REITs Index was up 25.77% with a dividend yield of 3.9% at November 28, the last trading day of the month. The FTSE NAREIT All Equity REITs Index was up 26.44% with a dividend yield of 3.4%, and the FTSE NAREIT Mortgage REITs Index was up 21.1% with a dividend yield of 10.34%.
By comparison, the S&P 500's total return was 2.69% for the month and 13.98% for the year to date, with a dividend yield of 1.96%.
REITs can thank the continuing economic recovery for their healthy performance, Case also says.
"We've seen slow but steady improvement in macroeconomic fundamentals, which, for REIT investors, increases the value of the properties and generally the stock prices of the REITs," he says.
"It also increases the cash that's available for REITs to distribute to their shareholders, so it increases both stock prices and income yields."
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