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REIT Earnings Rebound from Pandemic Downturn
A recovery in REIT earnings is well underway after the sharp decline that occurred during the shutdowns at the beginning of the pandemic, Nareit reported. While digital-economy REITs—including those in the industrial sector—continued a strong earnings story throughout 2020, even lodging and retail REITs have begun trimming their losses.
According to the latest Nareit Total REIT Industry Tracker Series report, funds from operations (FFO) rose 11.3% to $13.9 billion in the fourth quarter of 2020, marking the second consecutive quarter of double-digit improvements and recovering half of the decline that took place last spring. FFO rose among eight of the 12 REIT property sectors, Nareit said.
“We believe we will see a strong recovery in those sectors that have felt the brunt of the pandemic when the vaccine distribution is widespread and shopping and travel patterns recover more fully,” said Nareit president and CEO Steven A. Wechsler.
