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.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).