X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-The National Association of Real Estate Investment Trusts (NAREIT) reports that, in comparison to last year’s third quarter numbers, REITs and publicly traded real estate groups are reaping the rewards of an increase in this year’s third quarter funds. The earnings include funds from operations (FFO) and earnings per share for real estate stocks.

REITs and publicly traded real estate companies show a 6.7% FFO per share growth. That number does not include real estate lodging firms, as those companies were drastically crippled by the devastation from the Sept. 11 terrorist attacks. Including those firms would have made for an inaccurate comparison. Specialty, self-storage and retail real estate groups prove to be the top performing sectors overall for the quarter. “FFO per share growth remained positive during an otherwise dismal third quarter earnings season elsewhere in corporate America,” says NAREIT Senior Vice President for Research and Investment Affairs Michael R. Grupe. “Preliminary reports indicate that corporate profits overall declined more than 20% on average in the third quarter.” NAREIT surveyed the 143 real estate companies that had submitted their earnings numbers by November 14.

The NAREIT report also compares income from continuing operations, and finds a 1.3% increase in those funds per share for real estate stocks. When using continuing operations income as a measuring stick, mortgage and real estate operating firms are the highest performers. Lodging REITs and companies are also left out of this calculation, which includes data from 126 companies.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.