REIT Performance Stays Solid with 10% Y-O-Y Rise in FFO
REITs’ operations remained solid in the fourth quarter of 2022 with year-over-year increases in funds from operations (FFO) and NOI as they continue to navigate rising interest rates and persistently high inflation, Nareit reported. FFO rose 10.1% year-over-year to $18.5 billion, while NOI rose 6.8% and same-store NOI was up 6.5%..
“REITs continue to be well prepared to navigate this period of economic uncertainty and higher interest rates,” said John Worth, Nareit EVP of research and investor outreach. “REITs have maintained strong balance sheets, delivered solid operational performance and notably paid out $61.9 billion in total dividends during 2022—which is a 13.8% increase over 2021.”
On a quarterly basis, FFO was down 6.2% in Q4, but that decrease was mainly driven by isolated issues related to non-U.S. operations and currency losses, according to Nareit. Excluding the isolated issues, quarterly FFO growth was slightly positive.